1.

Fully depreciated properties shall be

a. Donated to other parties
b. Exchanged for another property
c. Transferred to Fully Depreciated properties or used continuously with disclosure
d. Disposed
 
2. On January 1, 2015 ABC company acquired a machinery to be used in business for
P450,000 cash. Aside from this amount, the company also paid for insurance for
P15,000 while the machinery is in transit and another P15,000 as insurance for the
current year. Testing cots total P20,000 and installation costs total P10,000. The trial
runs produced some good which were sold for P5,000. The cost of machinery is
a. P510,000
b. P495,000
c. P490,000
d. P505,000