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Question - On January 2, 2015 Mel Corporation bought machinery under a contract that required a down payment of P100,000, Plus 24 monthly payments of P50,000 each, for total cash payments of P1,300,000. The cash equivalent price of the machinery was P1,100,000. The machinery has an estimated useful life of 10 years and estimated salvage value of P50,000. Mel uses straight-line depreciation. In its 2015 income statement, what amount should Mel report as depreciation for this machinery?
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