Use the following information for the next two (2) questions:

Blood Hunter Company purchased pressing machinery that cost P54,000 on January 4, 2013. The entire cost

was recorded as an expense. The machinery has a nine-year life and a P50,400 depreciable cost. The error was

discovered on December 20, 2015.

29) Ignoring income tax consideration, Blood Hunters statement of comprehensive income for the year ended

December 31, 2015 should show depreciation expense in the amount of

A. 48,400 B. 32,700 C. 16,800 D. 5,600

30) Before the correction was made, the January 1, 2015, retained earnings was understated by

A. 54,000 B. 48,400 C. 42,800 D. 37,200

31) Wirehair Companys statements for 2014 and 2015 included the following errors:

December 31, 2014 inventory understated 2,000,000

December 31, 2015 inventory overstated 1,000,000

Depreciation for 2014 understated 400,000

Depreciation for 2015 overstated 800,000

How much should retained earnings be retroactively adjusted on January 1, 2016?

A. 1,400,000 increase B. 1,400,000 decrease C. 600,000 increase D. 600,000 decrease

32) On January 1, 2014, Birman Company purchased for P240,000 a machine with a useful life of 10 years and

no salvage value. the machine was depreciated by the double-declining balance method and the carrying

amount of the machine was P153,600 on December 31, 2015. Birman changed to the straight-line method

on January 1, 2016. Birman can justify the change. What should be the depreciation expense on this

machine for the year ended December 31, 2016?

A. 30,720 B. 24,000 C. 19,200 D. 15,360