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On January 1, 2015, Ameche Company purchased a machine for P4,000,000 and established an annual straight line depreciation rate of 10%, with no residual value. During 2019 the entity determined that the machine will not be economically useful in the production process after December 31, 2019. The entity estimated that the machine had no residual value on December 31, 2019, and would be disposed of in early 2020 at a cost of P100,000.
Problem 1: In the income statement for the year ended December 31, 2019, what is the depreciation expense?
Problem 2: What is the impairment loss in 2019?
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