question archive For items 1-2: In January 1, 2019, ABC Corporation purchased vehicle used in the business operations amounting to trade price of P15,000,000 with useful life of 15 years
For items 1-2: In January 1, 2019, ABC Corporation purchased vehicle used in the business operations amounting to trade price of P15,000,000 with useful life of 15 years
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For items 1-2: In January 1, 2019, ABC Corporation purchased vehicle used in the business operations amounting to trade price of P15,000,000 with useful life of 15 years. The trade discount is 10% of trade price. The vehicle will be at no cost after its useful life.
1. What is the depreciation amount?
A. P15,000,000
B. P13,500,000
C. P14,000,000
D. P12,150,000
2. The depreciation expense that can be allowed as deduction from its income in year 2019, assuming ABC Corp is using straight line method is:
A. P1,000,000
B. P900,000
C. P1,350,000
D. P1,500,000
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Answer:
1) I think first question is related with cost of Asset . So Cost of Asset is (P15,000,000-10% of P15,000,000) i.e P13,500,000
Hence Correct answer is "B"
2) Depreciation Amount = P13,500,000/15 = P900,000
Hence Correct answer is "B"
