1. On April 1, 2020 taxpayer acquired a machine considered as ordinary asset for P145,000. Taxpayer also incurred freight-in of P5,000, insurance while machine was in transit for 4,000, and installation cost of P6,000. The estimated useful life of the machine is 10 years and the salvage value is estimated at P10,000. Using straight-line method, how much is the reportable depreciation expense in 2020?

2. Taxpayer incurred the amount of P300,000 for the repair of one of its business assets. At the time of repair, the asset had a carrying value of P500,000. After repair, the fair value of the asset increased to P750,000. How much shall be recognized as expense for repair?

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