PPE and Depreciation Schedule for the year ended September 30, 2023 has started at Island Solution. The depreciation policy is to apply one month’s ownership, one month’s depreciation. Your team was provided with the following information. Land and Building were acquired for $800 000 in a lump sum purchase. At the time of acquisition, the appraised values of the land and building were $90 000 and $810 000 respectively. Equipment with an appraised value and residual value of $40 000 and $3 000 respectively was received by the company as a donation. Machinery costing $182 900 inclusive of $600 installation expense and $14 900 normal repair and maintenance cost, and with a $6 000 estimated salvage value was sold on February 1, 2023. Question: .1. Explain three (3) similarities and two (2) differences between IFRS and US GAAP with respect to accounting for property, plant, and equipment. 2. Complete the PPE and Depreciation Schedule below by providing the values for [a] – [j]. Show all workings. Assets Date of acquisition cost Residual Value Depreciation Method Estimated Useful Life (years) Annual Depreciation Expense at September 30 2022 2023 Land Oct 1, 2021 (a) - - - - - Building Oct 1, 2021 (b) $40,000 SLM (c) $13600 (d) Equipment Oct 2, 2021 (e) 3000 150% declining balance 10 (f) (g) Machinery Oct 2, 2021 (h) 6000 SYD 8 (i) (j)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 3MCQ: When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash...

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PPE and Depreciation Schedule for the year ended September 30, 2023 has started at Island Solution. The depreciation policy is to apply one month’s ownership, one month’s depreciation. Your team was provided with the following information.

Land and Building were acquired for $800 000 in a lump sum purchase. At the time of acquisition, the appraised values of the land and building were $90 000 and $810 000 respectively.
Equipment with an appraised value and residual value of $40 000 and $3 000 respectively was received by the company as a donation.
Machinery costing $182 900 inclusive of $600 installation expense and $14 900 normal repair and maintenance cost, and with a $6 000 estimated salvage value was sold on February 1, 2023.

Question:

.1. Explain three (3) similarities and two (2) differences between IFRS and US GAAP with respect to accounting for property, plant, and equipment.

2. Complete the PPE and Depreciation Schedule below by providing the values for [a] – [j]. Show all workings.

Assets	Date of acquisition	cost	Residual Value	Depreciation Method	Estimated Useful Life (years)	Annual Depreciation Expense at September 30
						2022	2023
Land	Oct 1, 2021	(a)	-	-	-	-	-
Building	Oct 1, 2021	(b)	$40,000	SLM	(c)	$13600	(d)
Equipment	Oct 2, 2021	(e)	3000	150% declining balance	10	(f)	(g)
Machinery	Oct 2, 2021	(h)	6000	SYD	8	(i)	(j)

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