Intermediate accounting 1

Problem 6 On January 1. 2020, Dime Company purchased a new machine for P4,000,000. The new machine has an estimated useful life of 8 years and the residual value was estimated to be P400,000. Depreciation was computed based on the sum of the years' digits method. What is the carrying amount of the machine on December 31, 20217 a. P2.100,000 b. P2.500,000 C. P1.150,000 d. P3,300,000 Problem 7 Bidder Inc. acquired a machinery on April 1. 2020. Cost P1,200,000 Residual value 120,000 Estimated useful life 8 years 1. What is the depreciation for 2020 using sum of years digits? a. P180,000 b. P240,000 C. P120,000 d. P160,000 2. What is the depreciation for 2021 using sum of years' digits? a. P157,5000 b. P217,500 C. P210,000 d. P105,000 3. What is the depreciation for 2020 using double declining balance? a. P300,000 b. P150,000 C. P225,000 d. P202,500 4. What is the depreciation for 2021 using double declining balance? a. P270,000 b. P135,000 C. P243,750 d. P150,000