On January 1, 2020, IT'S SHOWTIME Corporation decided to dispose of an item of plant

that is carried in its records at a cost of P= 900,000, with accumulated depreciation of P=

160,000. Depreciation on the plant since it was originally acquired has been charged of P=
10,000 per month. The plant will continue to be operated until it is sold, at which time the
operations of the plant will be outsourced. The company undertook all the necessary
actions to be able to classify the asset as held for sale. It is estimated that it could sell the
plant for its fair value, P= 720,000, incurring P= 20,000 selling costs in the process. The
plant has been depreciated at an amount of P= 10,000 per month. 

On March 31, 2020, the plant had not been sold but, due to shortage of this type of plant,
there had been an increase in the fair value to P= 770,000. On June 30, 2020, IT'S
SHOWTIME sold the plant for P= 785,000 incurring P= 25,000 selling costs.

The depreciation expense to be recognized in 2020 is ______________

Other Forecasting Method

Focus Forecasting

- Some companies use forecasts based on a “best current performance” basis

- Apply several forecasting methods to the last several periods of historical data
- The method with the highest accuracy is used to make the forecast for the following period
- This process is repeated each month

Diffusion Forecasting

- Historical data on which to base a forecast are not available for new products
- Predictions are based on rates of product adoption and usage spread from other
established products
- Take into account facts such as
 Market potential
 Attention from mass media
 Word-of-mouth