TOPIC: DEPRECIATION

PROBLEM #3 CC Company used a hand tool in the manufacturing activities. On January 1, 2019, there are 800 of such tools on hand at cost of P200 each. Acquisition and retirement during 2019 and 2020 are: Retirement and Estimated Acquisition and Retirement value of tools Cost proceeds at year-end 2019 400 @ P300 300 @ P50 200,000 2020 900 @ P400 700 @ P70 350,000 Retirement may be assumed to be on first-in, first-out basis. REQUIRED: Compute for the carrying amount of the tools as of December 31, 2019 and 2020 under the following methods: Retirement b) Replacement c) Inventory