Hardy Man, Inc. incurred repair costs of a machine in 2021 for P 30,000 and erroneously...
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Hardy Man, Inc. incurred repair costs of a machine in 2021 for P 30,000 and erroneously capitalized the cost to machinery account. The company's policy would have called for the depreciation of the asset over its estimated useful life of five years with a 10% salvage value by the straight-line method. Hardy Man's policy is to take one-half year's depreciation in the year of acquisition and one-half in the year of disposal. QUESTION: What is the impact of the error in 2022 net income? Hardy Man, Inc. incurred repair costs of a machine in 2021 for P 30,000 and erroneously capitalized the cost to machinery account. The company's policy would have called for the depreciation of the asset over its estimated useful life of five years with a 10% salvage value by the straight-line method. Hardy Man's policy is to take one-half year's depreciation in the year of acquisition and one-half in the year of disposal. QUESTION: What is the impact of the error in 2022 net income?
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Impact of error in 2022 net income Here the repair cost is incorrectly cap... View the full answer
Related Book For
Accounting What the Numbers Mean
ISBN: 978-0078025297
10th edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele
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