Question
Leslie Company acquired a machine on January 1, 2020 for P10,000,000. The machine has an 8-year useful life and a P1,000,000 residual value, and was
Leslie Company acquired a machine on January 1, 2020 for P10,000,000. The machine has an 8-year useful life and a P1,000,000 residual value, and was depreciated using the sum-of-years digits method. Leslie recorded a full year's depreciation on the asset in 2020 and 2021. In January of 2022, Leslie estimated that the asset's useful life from the date of acquisition should have been 6 years and its residual value to be P400,000. As a result of this change in Leslies's accounting estimate, what is the accumulated depreciation on December 31, 2022?
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