Reference no: EM133149752
Question 1 - Narima Company has three lines of business, each of which is a significant industry segment. Company sales aggregated P1,800,000 in 2022, of which Segment Sofia contributed 60 percent. Traceable costs were P600,000 for Segment Sofia from a total of P1,200,000 for the company as a whole. In addition, P350,000 of common costs are allocated in the ratio of a segment's income before common costs to the total income before common costs.
For Segment Sofia, Narima should report a 2022 segment profit of?
a. P200,000
b. P270,000
c. P280,000
d. P480,000
Question 2 - On January 1, 2022, the management of Jamaica Company determined that a revision in the estimate associated with the depreciation of plant facilities was necessary. The facilities, purchased on January 1, 2020, for 7,500,000, had been depreciated using the straight-line method with an estimated residual value of 500,000 and an estimated useful life of 15 years.
Management has determined from recent appraisal reports that the expected remaining useful life of the facilities is only 10 years and the estimated residual value should be increased by 200,000.
What is the depreciation expense that should be recognized for the year 2022?
a. P536,667
b. P633,333
c. P293,333
d. P586,667
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