Question Orange Company purchased a drilling machine in 2010 for P240,000. The machine was depreciated on the straight-line method over an estimated useful life of 20 years, with no salvage value. At the beginning of 2020, when the machine had been in use for 10 years, the company paid P40,000 to overhaul the machine. As a result of this improvement, the company estimated that the useful life of the machine would be extended an additional 5 years. What would be the depreciation expense recorded for the machine in 2020? *

B4SWUK The Asker · Accounting
Orange Company purchased a drilling machine in 2010 for P240,000. The machine was depreciated on the straight-line method over an estimated useful life of 20 years, with no salvage value. At the beginning of 2020, when the machine had been in use for 10 years, the company paid P40,000 to overhaul the machine. As a result of this improvement, the company estimated that the useful life of the machine would be extended an additional 5 years. What would be the depreciation expense recorded for the machine in 2020? *
More