Question
On January 1,2020,Canyon Company decided to decrease the estinated useful life of the patent from 10 years to 8 years. The patent was purchased on
On January 1,2020,Canyon Company decided to decrease the estinated useful life of the patent from 10 years to 8 years.
The patent was purchased on January 1,2015 for P3,000,000 with residual value of zero.
The entity decided on January 1,2020 to change the depreciation metjod from accelarated method to straight line.
On January 1,2020 the cost of the equipment is P8,000,000 and the accumulated depreciation is P3,400,000.
The remaining useful life of the equipment on January 1,2020 is 10years and the residual value is P200,000.
What is the total change against 2020 income as a result of the accounting change?
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Interpreting And Analyzing Financial Statements
Authors: Karen P Schoenebeck, Mark P Holtzman
5th Edition
0136121985, 9780136121985
