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San Marino Corp. began operations on January 1, 2004, at which time it acquired depreciable assets of P 200,000. The assets have an estimated useful life of ten years and no residual value.
In 2008, San Marino Corp. changed from SYD (sum-of- the years' digits) depreciation method to the straight-line depreciation method. In 2008, Century Tuna Corp. had income from operations of P 670,000 before depreciation. Net income from previous years were as follows:
2006 300,000 2004 350,000
2005 450,000 2007 325,000
Required:
Problem 1: Compute for the adjusted profits in 2004, 2005, 2006 and 2007.
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