Land improvements

As of December 31 2022:

Beginning balance - P5,000,000

Estimated useful life - 10 years

Depreciation method - 150% declining balance method

Accumulated Depreciation - P2,781,473

a. On July 1, 2023, an old fence surrounding the company premises with cost of P2,000,000 was demolished and construction of new fence begun. Total directly attributable cost incurred for the new fence is P3,500,000 with an estimated useful life of 10 years. The new fence was finished on October 31, 2023. The management estimates that the land improvement balance on January 1, 2023 were assessed to have 4 years of estimate useful life.

Question: How much is the accumulated depreciation balance of land improvements as of December 31, 2023?

Answer rating: 100% (QA)

To calculate the depreciation expense for the land improvements we first need to determine the depre... View the full answer