Reference no: EM132882219

Questions -

Q1. On January 1, 2014, Milan Company determined that a revision in January estimate associated with the depreciation of storage facilities was appropriate. The facilities, purchase, on January 1, 2012, for P6,000,000, had been depreciated using the straight use method with an estimated residual value of P600,000 and an estimated useful life of 20 years, The entity has determined that the expected remaining, useful life of the storage facilities is 10 years with an estimated residual value of P800,000. What is the depreciation for 2014?

Q2. Jenny Company reported net income of 9,000,000 in 2014. The audit of the records revealed that ending inventory of 2013 was understated by 500,000. Insurance payment of 900,000 in 2012 was charged to expense. The insurance coverage related equally to 2012, 2013, 2014. Revenue received in advance of 1,000,000 in 2014 was treated as earned in 2014 but it will actually be earned in 2015. Interest payable of 2,000,000 at the end of 2014 was not recorded. What is the corrected net income for 2014?