On January 1, 2019, the management of MILL Company determined that a revision in the...
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Accounting
On January 1, 2019, the management of MILL Company determined that a revision in the estimate associated with the depreciation of storage facilities was appropriate. The facilities, purchased on January 1, 2017, for P6,000,000 had been depreciated using the straight line method with an estimated residual value of P600,000 and an estimated useful life of 20 years. Management has determined that the expected remaining useful life of the storage facilities is 10 years and that they have an estimated residual value of P800,000.
Q1. What is the depreciation for the year 2019? *
Q2. What would be the carrying amount of the storage facilities on December 31, 2019?
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