At the beginning of the current year, an entity purchased two (2) machines for Php1,000,000 each. The machines were put into use immediately. Machine A has useful life of 5 years and can be used only in one research project. Machine B will be used for 2 years on a research and development project and then used by the production division for an additional 8 years. The entity used the straight-line method of depreciation. What amount should be recognized as research and development for the current year?

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Answer To determine the amount that should be recognized as research and development RD expenses for ... View the full answer