Avocado Inc. acquire a machinery at a cost of P10,000,000 on January 1, 2021 to be used in the business. It has an estimated life of 5 years and a residual value of P1,000,000. On January 1, 2024, the management of Avocado Inc decided to classify the said machinery as held for sale. The fair value less cost of disposal was estimated at P3,800,000. On July 1, 2024, the machinery was sold for P3,000,000. The carrying amount of the machinery on July 1, 2024 is P5,400,000.

Entity A acquires equipment on Jan 1, 2021. Information on costs is as follows. Purchase price, gross of trade discount is 1000000 Trade discount available is 10000 Freight costs is 20000 Testing costs is 30000 Net disposal proceeds of samples generated during testing is 5000 Present value of estimated costs of dismantling the equipment at the end of its useful life is 6209 On Dec 31, 2023, Entity A revalues the equipment at a fair value of 820000. There is no change in the residual value and the useful life of the asset. How much is the revaluation surplus on Dec 1, 2023?

Johnson Company purchased an equipment at P6,500,000 on January 1, 2020 which will be used for a total of 10 years, no salvage value. Johnson accounted for this equipment using the revaluation model. The value in use of the assets during the three revaluation dates were P5,556,000, P4,413,000 and P4,240,000 on December 31, 2020; 2021; and 2022. While the fair values are P5,500,000, P4,620,000; and P4,770,000; respectively for 2020, 2021 and 2022 with cost to sell of P100,000; P120,000; and P110,000, respectively.   How much is the income (expense) recognized in 2020? How much is the income (expense) recognized in 2021? How much is the income (expense) recognized in 2022?

On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roque more Corporation for $910,000 and $405,000, respectively. On the date of the sale, the book value of the patent was $ $200,000, and the book value of the equipment was $496,000 (cost of $726,000 less accumulated depreciation of $230,000) Prepare the journal entries to record the sales of the patent and equipment < 1 2 Record the sale of the equipment for $405,000. On the date of the sale, the book value of the equipment was $496,000 (cost of $726,000 less accumulated depreciation of $230,000). Note: Enter debits before credits. Event 2 General Journal Debit Credit

On December 31, 2022, ALR, Inc. classified one of its plant assets (land) as held for sale. The carrying value of the land as of that date was $2,000,000. The fair value less selling costs on that date was $1,800,000. As of December 31, 2023, the company had not sold the asset, so it was still classified as held for sale. fair value net of selling costs as of December 31, 2023, was $2,050,000. Based on this information, indicate how ALR should report the asset on the December 31, 2022, and December 31, 2023, balance sheets. Prepare any journal entries required. Begin by recording the journal entry to reclassify the land held for sale on December 31, 2022. (Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required select "No Entry Required" on the first line of the journal entry table and leave all remaining cells in the table blank.) Аccount December 31. 2022 Now, record the journal entry to write down the asset on December 31, 2022.…

Bob Ltd. purchased two new machines for cash on 1 January 2020. Machine X cost $8,000 and Machine Y cost $ 20,000. Each machine was expected to have a useful life of 10 years, and residual values were estimated at $400 for Machine X and $1,000 for Machine Y. On 30 June 2021, Bob Ltd. adopted the revaluation model to account for the class of machinery. The fair values of Machine X and Machine Y were determined to be $6,400 and $9,000 respectively on that date. The useful life and residual value of Machine X was reassessed to 8 years and $300. The useful life and residual value of Machine Y was reassessed to 8 years and $800. On 2 January 2022, extensive repairs were carried out on Machine Y for $12,000 cash. Bob Ltd. expected these repairs to extend Machine Y's useful life by 4 years, and it revised Machine Y's estimated residual value to $950. Bob Ltd. decided to replace Machine X. It traded in Machine X on 31 March 2022 for new Machine C, which cost $ 7,500. A $3,800 trade - in was…

an entity acquired furniture and fittings on 1 July 2021 for $42 000. The estimated useful life of the furniture and fittings at acquisition date was 8 years and the residual value was $2000. The company sold all the furniture and fittings on 1 January 2027 for $18 000. The journal entry to reflect the sale is:

1. On November 4, 2020, GT Corporation sells a piece of its equipment. GT Corporation had initially purchased the equipment for $350,000. The company had recorded $230,000 in depreciation for this piece of equipment as of the date of sale. If GT Corporation receive $150,000 cash when they sell the equipment, they will report a November 2020 Income Statement; if they instead receive $100,000 cash when they sell the equipment, they will on their report a a. $150,000 gain; $100,000 gain. b. $80,000 gain; $130,000 loss. c. $30,000 loss; $20,000 gain. d. $30,000 gain; $20,000 loss.

Drexler acquire an item of plant on 1 October 2021 at a cost of $500,000. It has a useful life of five years (straight-line depreciation) and an estimated residual value of 10% of its historical cost or current cost as appropriate. As at 30 September 2023 the manufacturer of the plant still makes the same item of plant, and its current price is $600,000. What is the correct carrying amount to be shown in the statement of financial position of Drexler as at 30 September 2023 under historical and current cost?

At the beginning of 2022, Metatec Incorporated acquired Ellison Technology Corporation for $590 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) Patent Goodwill The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a five-year useful life, no residual value, and is amortized using the straight-line method. At the end of 2024, a change in business climate indicated to management that the assets of Ellison might be impaired. The following amounts have been determined: Plant and equipment: Undiscounted sum of future cash flows Fair value Patent: Undiscounted sum of future cash flows Fair value Goodwill: Fair value of Ellison Technology Corporation Book value of Ellison's net assets (excluding goodwill) Book value of Ellison's net assets (including goodwill) Required 1 $…