Reference no: EM132787427

Question - The Mighty Corporation has the following changes in terms of its Property, Plant and Equipment:

a. Machine A was purchased for P 30,000 on January 1, 2018. It had an estimated residual value of P 5,000 and an estimated service life of 10 years. It has been depreciated under double declining balance method for 2 years. Now in the third year, Mighty decided to change it to the straight line method.

b. Machine B was purchased for P 50,000 on January 1, 2015. Straight line depreciation was the basis of recording depreciation for five years which accumulates for P 25,000. Residual value of P 5,000 remains the same but the service life is now estimated to two years longer than the original estimate.

c. Machine C purchased for P 20,000 on January 1, 2019. Double declining balance method has been recorded for a year. The estimated residual value of P 2,000 and its service life is five years. The depreciation recorded includes the estimated residual value.

Required - What is the correct depreciation expense for each machinery for the year 2020?