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Question - Calulut Corporation was established on January 1, 2020. On January 1, 2022, the Company purchased plant equipment at a cost of P3,500,000 for its expanding provincial operations. It is the Company policy that this equipment should be depreciated on the straight line method over a five-year period with no residual value. In the year 2022, the newly hired accountant made an error not to recognize depreciation in the Company's financial statements. During the preparation of the Company's 2023 financial statements, the error was discovered by the auditors. What should be the Depreciation expense on this machine for the year 2023?
a. P350,000
b. P2,100,000
c. P1,400,000
d. P700,000
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