Ikerr Company purchased a machine for P1, 150,000 om January 1, 2020, the first day of operation. The current cost of the machine was P1,250,000 on December 31, 2020. The machine has no residual value, has a five-year life, and is depreciated by the straight line method.

1.What amount of depreciation should be reported in the historical cost income statement for 2020?

2.What amount of depreciation expense should be reported in the current cost income statement for 2020?

3.What is the realized holding gain on the equipment for 2020?

4.What is the unrealized holding gain on the equipment for 2020?

Answer rating: 100% (QA)

1 The amount of depreciation that should be reported in the historical cost income statement for 202... View the full answer