Question: The answer is P7,765 . I just need the complete solution. Indigo Company acquired a piece of machinery on July 1, 2015 for PB0,000 and

The answer is P7,765. I just need the complete solution.

The answer is P7,765. I just need the complete solution. Indigo Company

Indigo Company acquired a piece of machinery on July 1, 2015 for PB0,000 and commenced depreciation on a straightline basis Over 10 years. At December 31, 2016, the machine was tested for impairment as a result of a downturn in the market. It was found to have a value in use of P66,000 and the fair value less costs of disposal was P60,000. What was the depreciation charge on the machine in the year ended December 31, 2017 assuming that there was no change in useful life

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