Problem 3 The Christine Manufacturing, which started operations on September 1, 2008, is owned by Sheile Sheile Led's accounts at December 31 included the following balances: Machinery (at cost) 91,000 Accumulated depreciation - machinery 48,200 Vehicles (at cost; purchased November 21, 2010) 46,300 Accumulated depreciation - vehicles 19,656 Lend let cost, purchased October 25, 2008) 21,000 Building (at cost: purchased October 25, 2008) 185,720 Accumulated depreciation - building 28,614 Details of machines owned at December 31, 2011 are as follows: Machine Purchase Date Cost useful Life Residual Value October 7, 2008 P 43.000 5 years F 2,500 February 4, 2009 F 48,000 6 years P 3,000 Additional information: Sheila Led calculates depreciation to the nearest month and balances the records at month Recorded amounts are rounded to the nearest peso, and the reporting date is December 31. Sheile Led uses straight-line depreciation for all depreciable assets except vehicles, which depreciated on the diminishing balance at 40% p.a. The vehicles account balance reflects the total paid for two identical delivery vehicles, es which cost F23,400. On acquiring the land and building. Sheile Led estimated the building's useful life and residual at 20 years and P5,000, respectively The foll Tom Arugry