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Question - On January 1, 2019, London Company purchased a large quantity of personal computers. The cost of these computers was P6,000,000.
On the date of purchase, the management estimated that the computers would last approximately four years and would have a residual value at that time of P600,000. The entity used the double declining balance method.
During January 2020, the entity realized that technological advancements had made the computers virtually obsolete and that they would have be replaced.
The management changed the remaining useful life of the computers to two years.
What is the depreciation expense for 2020?
At what amount should the computer software costs be reported in the December 31, 2012, balance sheet?
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