Vivid Company acquired a machine on January 1, 20x1 for P10,000,000. The machine has an 8-year...

 

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Vivid Company acquired a machine on January 1, 20x1 for P10,000,000. The machine has an 8-year useful life with a P1,000,000 residual value and was depreciated using the sum of the year's digits method. In January 20x3, the entity estimated that the asset's useful life from the date of acquisition should have been six years and the residual value is P400,000. What is the carrying amount of the machinery as of December 31, 20x2? Vivid Company acquired a machine on January 1, 20x1 for P10,000,000. The machine has an 8-year useful life with a P1,000,000 residual value and was depreciated using the sum of the year's digits method. In January 20x3, the entity estimated that the asset's useful life from the date of acquisition should have been six years and the residual value is P400,000. What is the carrying amount of the machinery as of December 31, 20x2?

Answer rating: 100% (QA)

10000000400000 6 160... View the full answer