On January 2, 2018, Lem Corp. bought machinery under a contract that required a down payment of P10,000 plus twenty-four monthly payments of P5,000 each, for total payments of P130,000.The cash equivalent price of the machinery was P110,000.The machinery has an estimated; useful life of ten years and estimated residual value of P5,000.Lem uses straight-line depreciation. In its 2018 income statement, what amount should Lem report as depreciation for this machinery?

Group of answer choices

P13,000

P11,000

P12,500

P10,500