Determine the acquisition cost of the machinery

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Q1. On January 3, 2009, ABC Co. purchased machinery. The machinery has an estimated useful life of eight years and an estimated salvage value of $30,000. The depreciation applicable to this machinery was $65,000 for 2011, computed by the sum-of-the-years'-digits method. Determine the acquisition cost of the machinery?

Q2. On January 1, 2014, ABC Company purchased a new machine for P2,800,000. The new machine has an estimated useful life of nine years and the salvage value was estimated to be P100,000. Depreciation was computed on the sum-of-the-years'-digits method. What amount should be shown in ABC's balance sheet at December 31, 2015, net of accumulated depreciation, for this machine?

Reference no: EM133131454

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