Salawahan Company had the following machineries that are depreciated under the group depreciation method: ...
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Accounting
Salawahan Company had the following machineries that are depreciated under the group depreciation method:
Cost
Residual Value
Depreciable Cost
Useful Life
Depreciation
Equipment A
P3,200,000
P200,000
P3,000,000
15
P200,000
Equipment B
2,100,000
100,000
2,000,000
8
250,000
Equipment C
5,300,000
300,000
5,000,000
10
500,000
Total
P10,600,000
P600,000
P10,000,000
P950,000
After 4, years Salawahan sold Equipment A for P800,000 and purchased Equipment D for P5,000,000 to replace the asset. How much is the debit to accumulated depreciation upon sale of Equipment A? (Use 2 decimal places in computing for the composite rate, e.g., 2.51%)
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