Belkin plc purchases a machine for £110,000 on 1 Jan 2015. The machine has no residual value, and an estimated useful life of 10 years. Belkin plc depreciates such machines yearly using the straight line method. On 1 Jan 2020, Belkin plc's management decides that the useful life was underestimated and should have been 15 years. What will be the annual depreciation charge for the year ended 31 December 2020?

In 2016, TallyHo Farms acquired production machinery at a cost of £430,000. In 2019, when accumulated depreciation was £180,000, Bambung reported an impairment loss of £78,000. Now, in 2023, the machinery has a book value of £142,000. The fair value less selling costs of the machinery is £273,000 and its value in use is £215,000. During impairment testing, Bambung recognized the possibility of a reversal of the previous impairment loss. What amount, if any, should Bambung recognize as a reversal of impairment loss under IFRS? Group of answer choices £58,000 £131,000 £73,000 £78,000        PreviousNext

Getaway Inc. bought a machine on January 1, 2021 for $50,000.  Getaway plans to keep the machine for 10 years. What is the machine's carrying value on June 30, 2023 assuming Gateway uses straight-line depreciation?

PPE cost €900,000 and has an estimated useful life of 3 years to an estimated salvage value of zero. The company uses straight-line depreciation but the tax authority gives allowances in the following accelerated form: 2017 is €500,000  2018 is €300,000  2019 is €100,000 And company EBITDA was: 2017 €900,000  2018 €950,000  2019 €1,020,000 And the statutory tax rate is 40% and has an effective tax rate of 36%. Calculate the firms’ tax payable, tax expense, deferred tax liability recorded in the balance sheet each year end and tax base for the asset for each year.

Presented below are selected transactions at Blue Company for 2020. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2010. The machine cost £60, 600 on that date. It had a useful life of 10 years with no residual value. June 30 Sold a computer that was purchased on January 1, 2017. The computer cost £38,000. It had a useful life of 5 years with no residual value. The computer was sold for £13,400. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2016. The truck cost £36,420. It was depreciated based on a 6-year useful life with a £3,000 residual value. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Blue Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2019.)

Baltika plc purchased a van on 1 November 2020 for a total cost of £28,000 by paying £21,500 cash and trading in an old van. The old van had cost £25,000 and the related accumulated depreciation was £17,500. What is the profit/loss on disposal of the old van in Baltika plc's statement of profit or loss for the year ended 31 December 2020?

Burrell Company purchased a machine for $33,000 on January 2, 2016. The machine has an estimated service life of 5 years and a zero estimated residual value. The asset earns income before depreciation and income taxes of $16,500 each year. The tax rate is 25%. Required: Compute the rate of return earned (on the average net asset value) by the company each year of the asset's life under the straight-line and the double-declining-balance depreciation methods. Assume that the machine is the company's only asset.