Question
Riles Truckers, Inc. acquired a heavy road transporter on January 1, 2012 at a cost of P10 million. The estimated useful life is 10 years.
Riles Truckers, Inc. acquired a heavy road transporter on January 1, 2012 at a cost of P10 million. The estimated useful life is 10 years. On January 1, 2018, the power train requires replacement, as further maintenance is uneconomical due to the off-road time required. The remainder of the vehicle is perfectly roadworthy and is expected to last for the next four years. The cost of the new power train is P4.5 million.
20.Assuming that the original cost of the power train is P3 million, the total depreciation expense in 2018 is_________.
21.Assuming that the original cost of the power train is not separately identifiable and the appropriate discount rate is 5% (the present value of 1 at 5% for 6 years is 0.7462), the total depreciation expense in 2018 is __________________.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started