Reference no: EM132943733

ABC Company purchased an equipment on April 1,2020 for Php500,000 with a 5 year useful life. On June 1, 2020,the entity purchased a machinery for Php2,000,000 with a 5-year useful life The depreciation method the entity uses for equipment is sum of the years digit , while double declining balance for machineries Residual values are estimated at 10% of acquisition cost

Problem 1: How much is the depreciation expense for the 1st quarter of 2021?

Option 1: Php 230,000

Option 2: Php 137,500

Option 3: Php 150,000

Option 4: Php 210,000

Option 5: None of the above

Problem 2: How much is the book value of property, plant, and equipment as of September 30, 2020?

Option 1: 2,158,333.00

Option 2: 2,185,000.00

Option 3: 1,935,000.00

Option 4: 2,108,333.00

Option 5: None of the above