Salawahan Company had the following machineries that are depreciated under the group depreciation method: Cost Residual Value
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Question:
Salawahan Company had the following machineries that are depreciated under the group depreciation method:
Cost | Residual Value | Depreciable Cost | Useful Life | Depreciation | |
Equipment A | P3,200,000 | P200,000 | P3,000,000 | 15 | P200,000 |
Equipment B | 2,100,000 | 100,000 | 2,000,000 | 8 | 250,000 |
Equipment C | 5,300,000 | 300,000 | 5,000,000 | 10 | 500,000 |
Total | P10,600,000 | P600,000 | P10,000,000 | P950,000 |
After 4, years Salawahan sold Equipment A for P800,000 and purchased Equipment D for P5,000,000 to replace the asset. How much is the debit to accumulated depreciation upon sale of Equipment A? (Use 2 decimal places in computing for the composite rate, e.g., 2.51%)
Related Book For
International Business
ISBN: 978-0470530658
8th edition
Authors: Michael Czinkota, Iikka A. Ronkainen, Michael H. Moffett
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