Find what is the carrying amount of the asset

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Problem 1: On January 1, 2015, Nicholson Company acquired equipment for P2,000,000 with an estimated 10-year useful life with 10% residual value and used the straight line method of depreciation. During 2019, after the 2018 financial statements had been issued, the entity determined that, due to obsolescence, this equipment has a remaining useful life of only four more years and residual value would be reduced to 40% of the original residual value. On December 31, 2019, what is the carrying amount of the asset?

Reference no: EM132674938

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