Question
Salawahan Company had the following machineries that are depreciated under the group depreciation method: Cost Residual Value Depreciable Cost Useful Life Depreciation Equipment A P3,200,000
Salawahan Company had the following machineries that are depreciated under the group depreciation method:
|
| Cost | Residual Value | Depreciable Cost | Useful Life | Depreciation |
| Equipment A | P3,200,000 | P200,000 | P3,000,000 | 15 | P200,000 |
| Equipment B | 2,100,000 | 100,000 | 2,000,000 | 8 | 250,000 |
| Equipment C | 5,300,000 | 300,000 | 5,000,000 | 10 | 500,000 |
| Total | P10,600,000 | P600,000 | P10,000,000 |
| P950,000 |
After 4, years Salawahan sold Equipment A for P800,000 and purchased Equipment D for P5,000,000 to replace the asset. How much is the debit to accumulated depreciation upon sale of Equipment A? (Use 2 decimal places in computing for the composite rate, e.g., 2.51%)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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
South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities
Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen
20th Edition
9780357109144
