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Step 1The depreciation is a reduction in the book value of the fixed asset of the business. Step 2Year 2010:Purchase price of machine = P240,000Useful life = 20 yearsSalavage value = 0The annual depreciation expense is calculated as follows:Depreciation expense=purchase price-salvage valueuseful life=P240,000-020=P12,000The accumulated depreciation for 10 years is calculated as follows:Accumulated depreciation=annual depreciation expense×10=P12,000×10=P120,000Step 3The book value of the machine in the year 2020 is calculated as follows:Book value=purchase price-accumulated depreciation=P240,000-P120,000=P120,000Year 2020:Book value of machine = P120,000Payment for overhaul = P40,000Total book value of machine = P160,000 (P120,000 + P40,000)Remaining useful life = 10 yearsIncrease in useful life = 5 yearsRemaining useful life (new) =  15 years ( 10 years + 5 years)Depreciation expense for the year 2020 is calculated as follows:Depreciation expense=Book value-salvage valueuseful life=P160,000-015=P10,667Step 4Answer:Depreciation expense for the machine in 2020 = P10,667 ...