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Question 1: An entity used the composite method of depreciation based on 25% composite rate. On January 1, 2019, the total cost of equipment was P5,000,000 with total residual value of P600,000 and accumulated depreciation of P3,000,000. In January 2019, the entity purchased an equipment for P2,500,000 with no residual value. On December 31, 2019, the entity sold an equipment costing P 1,000,000 for P350,000. The said equipment was acquired on January 1, 2017 with residual value of P200,000. What amount of depreciation should be recognized for 2019?
Financial Statement Analysis and Preparation
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