Indigo Company acquired a piece of machinery on July 1, 2015 for P80,000 and commenced depreciation...
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Indigo Company acquired a piece of machinery on July 1, 2015 for P80,000 and commenced depreciation on a straight-line basis over 10 years. At December 31, 2016, the machine was tested for impairment as a result of a downturn in the market. It was found to have a value in use of P66,000 and the fair value less costs of disposal was P60,000. What was the depreciation charge on the machine in the year ended December 31, 2017 assuming that there was no change in useful life? Indigo Company acquired a piece of machinery on July 1, 2015 for P80,000 and commenced depreciation on a straight-line basis over 10 years. At December 31, 2016, the machine was tested for impairment as a result of a downturn in the market. It was found to have a value in use of P66,000 and the fair value less costs of disposal was P60,000. What was the depreciation charge on the machine in the year ended December 31, 2017 assuming that there was no change in useful life?
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CALCULATION OF DEPPRECIATION CHARGE ON THE MACHINE The depreciation charge for the year ended ... View the full answer
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
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