What amount fear factory report as accumulated depreciation

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Question - Fear Factory purchased equipment which was installed and put into service on January 1, 2021 at a total cost of P500,000. The equipment has an estimated 5-year service life with no salvage value. It is the company's policy for 5-year service life assets to use the double declining balance method for the first two years of the assets' life  and then switch to the straight-line depreciation basis.

In its December 31, 2023 balance sheet, what amount should Fear Factory report as accumulated depreciation for the equipment?

Beck Company purchased land, building and equipment from Josefina Group of Companies for a lump sum cash payment of P306,000. The estimated fair values of the assets at the time of purchase were land P60,000; building P220,000; and equipment P80,000.

At what amounts should each of the assets be recorded?

Reference no: EM133157921

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