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Natividad Company purchased a tooling machine in 2010 for P3,000,000. The machine was being depreciated on the straight-line method over an estimated useful life of
Natividad Company purchased a tooling machine in 2010 for P3,000,000. The machine was being depreciated on the straight-line method over an estimated useful life of twenty years, with no salvage value. At the beginning of 2020, when the machine had been in use for ten years, the company paid P600,000 to overhaul the machine. As a result of this improvement, the company estimated that the useful life of the machine would be extended an additional five years. What should be the depreciation expense recorded for the machine in 2020? P140,000 OP210,000 P150,000 P340,000
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