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Show complete solutions as to why the final answer is 1,500,000. Cassy Company purchased a machine at an invoice price of P5,000,000 with terms 3/10,n/30.
Show complete solutions as to why the final answer is 1,500,000.
Cassy Company purchased a machine at an invoice price of P5,000,000 with terms 3/10,n/30. However, the entity paid for the machine beyond the discount period. The entity also paid P100,000 for delivery and P 250,000 for installation and testing. The machine was ready to use by January 1, 2021 and had an estimated useful life of 5 years with a salvage value of P750,000. Engineering estimates indicated that the useful life in productive units was 222,500 . Actual units produced during 2021 was 42,000 and for 2022 was 33,000 . The entity decided to use the output method of depreciation. What is the accumulated depreciation of the machine on December 31, 2022Step by Step Solution
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