Reference no: EM132943717

Easy Company acquired an equipment on January 1, 2020 for Php5,000,000. Depreciation is computed using the sum of the years digit method The estimated useful life of the equipment is five years with no residual value A specific price index applicable to the equipment was 150 on January 1,2020 and 225 on December 31,2020

Problem 1: What is the unrealized holding gain (loss) on the equipment to be reported in 2020?

Option 1: Php 833,333
Option 2: Php 416,667
Option 3: Php 972,222
Option 4: Php 1,666,667
Option 5: none of the choices

Problem 2: What is the realized holding gain(loss) on the equipment to be reported in 2020?

Option 1: Php 833,333
Option 2: Php 416,667
Option 3: Php 972,222
Option 4: Php 1,666,667
Option 5: None of the above

Problem 3: What amount of depreciation should be reported in the current cost income statement for 2020?

Option 1: Php 2,083,333
Option 2: Php 1,666,667
Option 3: Php 2,500,000
Option 4: Php 1,111,111
Option 5: None of the above

Problem 4: What amount of depreciation should be reported in the historical income statement for 2020?

Option 1: Php 2,083,333
Option 2: Php 1,666,667
Option 3: Php 2,500,000
Option 4: Php 1,000,000
Option 5: None of the above