On January 1, 2020, Banana Co. entered into a contract to acquire a new machine for its factory. The machine, which had a cash price of P300,000, was paid for

On January 1, 2020, Banana Co. entered into a contract to acquire a new machine for its factory. The machine, which had a cash price of P300,000, was paid for as follows: Down payment P30,000; Note payable in 10 equal monthly installments P240,000; 1,000 shares of Banana Co. ordinary shares with an agreed value of P50 per share: P50,000 Total P320,000. Prior to the machine’s use, installation costs of P8,000 were incurred. The machine has an estimated useful life of 10 years and salvage value of P10,000. should the company record as depreciation expense for the first year under the straight line method? * P29,800 P30,000 P31,000 P31,800

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