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Problem 1 Celery Company owned a machine that was bought on January 1, 2016 for P4,000,000. The machine was estimated to have a useful life
Problem 1 Celery Company owned a machine that was bought on January 1, 2016 for P4,000,000. The machine was estimated to have a useful life of eight years and a residual value of P150,000. The entity used the sum of the years' digits method of depreciation. January 1, 2019, the entity determined that the total useful life of the machine should have been seven years and the residual value is P190,000. What amount should be recorded as depreciation expense of the machine for 2019? Problem 2 Wheatgrass Company purchased an equipment on July 1, 2019 for P5,000,000. The machine has an estimated useful life of five years and a residual value of P300,000. The equipment is being depreciated using 150% declining balance method. How much is the carrying value of the equipment on December 31, 2021 if the company already used sum-of-the-years- digit method for this equipment on January 1, 2021? Problem 3 On January 1,2013, Sitaw Company purchased an equipment for P1,970,000. On this date, the equipment has an estimated economic useful life of 12 years and estimated residual value of P90,000. It is the company's policy to depreciate this type of equipment using a sum-of-years digit. On January 1, 2019, Sitaw Company made a review of the estimated useful life and salvage value of the equipment and review revealed that the asset has a revised total life of 14 years and a residual value of P100,000. The company also changed the method of depreciation to straight-line. Prepare the entries from January 1, 2013 to December 31, 2019. What is the carrying value of the asset of December 31,2018
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