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Gel Company determined that, due to obsolescence, equipment with an original cost of P9,000,000 and accumulated depreciation on January 1, 2018, of P4,200,00 had suffered
Gel Company determined that, due to obsolescence, equipment with an original cost of P9,000,000 and accumulated
depreciation on January 1, 2018, of P4,200,00 had suffered permanent impairment and as a result should have a carrying amount
of only P3,000,000 as of the beginning of the year. In addition, the remaining useful life of the equipment was reduced from 8
years to 3. On December 31, 2018, what amount should be reported as accumulated depreciation?
A. 1,000,000
B. 5,200,000
C. 6,000,000
D. 7,000,000
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