CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying ₱1,000,000, and a payment of ₱500,000 every December 31 is required for four (4) years. The selling price of the machine, if paid on cash basis, is ₱2,500,000. The residual value of the machine after its 4-year useful life is ₱200,000. The company used the double declining balance method in depreciating the machine. How much is the cost of the machine upon acquisition?
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CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying ₱1,000,000, and a payment of ₱500,000 every December 31 is required for four (4) years. The selling price of the machine, if paid on cash basis, is ₱2,500,000. The residual value of the machine after its 4-year useful life is ₱200,000. The company used the double declining balance method in
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- Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying $1,000,000, and a payment of $500,000 every December 31 is required for four (4) years. The selling price of the machine, if paid on cash basis. is $2,500,000. The residual value of the machine after its 4-year useful life is $200,000. The company used the double declining balance method in depreciating the machine. How much is the depreciation expense for 2019? Can you please answer this?XYZ Corporation bought a machine on January 1, 20x2. In purchasing the machine, the company paid ₱50,000 cash and signed an interest-bearing note for ₱100,000. The estimated useful life of the machine is five years, after which time the residual value is expected to be ₱15,000. Given this information, how much depreciation expense would be recorded for the year ending December 31, 20x3 if the company uses the sum-of-the-years'-digits depreciation method? 45,000 c. 36,000 40,000 d. 34,000
- During the current year, Benguet Company purchased a secondhand machine at a price of P300,000. A cash down payment of P50,000 was made and a two-year, non interest bearing note was issued for the balance. Recent transactions involving similar machinery indicate that the used machine has a secondhand market value of P240,000. A new machine would cost P400,000. The following costs were incurred on the machine during the year: Cost of removing the old machine 2,000Cash proceeds form the sale of the old machine 1,200Cost of spare parts purchased and set aside from breakdowns during the first two years of normal use of the machine 20,000Cost of labor to install the machine 4,000Cost of testing the machine prior to use 1,800Cost of hauling the machine from the vendor’s place of business to the company’s premises 5,000Cost of repairing the damage to the machine when it was dropped during the installation 3,000Repairs incurred during the first year of operations 6,000Safety devices added to…On January 1, 2017, NBM Corporation acquired machinery at a cost of ₱500,000. BMB adopted the double-declining balance method of depreciation for this machinery and had been recording depreciation over an estimated useful life of ten years, with no residual value. At the beginning of 2020, a decision was made to change to the straight-line method of depreciation for the machinery. The depreciation expense for 2020 would be ₱25,600 ₱50,000 ₱36,572 ₱71,428CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying $1.000.000, and a payment of $500.000 every December 31 is required for four (4) years. The selling price of the machine, if paid on cash basis, is $2,500,000. The residual value of the machine after its 4-year useful life is $200.000. The company used the double declining balance method in depreciating the machine. How much is the cost of the machine upon acquisition? A. $3,000,000 B. $2,800,000 C. $2,500,000 D. $2,300,000 Can you please answer this proven by a solution?
- On July 1, 2020, Zelensky Company, a calendar-year company, purchased a machine for a cash price of P800,000, with an estimated useful life of 10 years and estimated residual value of P70,000. The company uses double declining balance method. It is the company’s policy to depreciate its assets to the nearest month.During 2022, P131,500 was spent on an upgrade to the machine in order to improve its efficiency and increase the inflow of economic benefits over the machine’s remaining life. In addition, management decided to change to the straight-line method of depreciation, maintaining its residual value of P70,000. What is the revised depreciation expense for the year ended December 31, 2022?On January 1, 2011, RIGHTEOUS MORAL Co. acquired a piece of equipment for ₱2,000,000. The equipment is depreciated using the straight line method over an estimated useful life of 10 years and residual value of ₱200,000. On January 1, 2016, RIGHTEOUS Co. determined that the equipment is impaired. Fair value less costs of disposal is ₱560,000. Projected future net cash flows from revenues produced by the equipment is ₱200,000 annually. The revised estimated useful life is 4 years and the new estimated residual value is ₱40,000. The appropriate discount rate is 10%. How much is the depreciation expense in 2016? With solutions please a. 156,732 b. 155,324 c. 155,132 d. 154,324Hardy Man, Inc., acquired a machine in 2021 for P 400,000 and erroneously charged the cost to an expense account. Correct accounting treatment would have called for the depreciation of the asset over its estimated useful life of five years with a 10% salvage value by the straight-line method. Hardy Man's policy is to take one half year's depreciation in the year of acquisition and one-half in the year of disposal. QUESTION: What is the impact of the error in 2022 net income?
- Burrell Company purchased a machine for $10,000 on January 2, 2019. 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 $5,000 each year. The tax rate is 20%. Compute the rate of return earned on the average net asset value by the company each year of the asset's life under the double declining balance depreciation method for the following years: 2019: 2020: 2021: 2022: 2023:Hardy Man, Inc., acquired a machine in 2021 for P 400,000 and erroneously charged the cost to an expense account. Correct accounting treatment would have called for the depreciation of the asset over its estimated useful life of five years with a 10% salvage value by the straight-line method. Hardy Man's policy is to take one-half year's depreciation in the year of acquisition and one-half in the year of disposal. QUESTION: What is the impact of the error in 2022 net income?Thorndale Inc. purchased a machine costing $400,000 from Drexel Manufacturing on March 31, 2020. Thorndale had to pay Express Freight Co. $10,000 to deliver and install the machine, which was placed into service on that date. Thorndale estimated that the machine would have a useful life of 10 years and $20,000 residual value. Thorndale uses the double-declining balance method for depreciation. Required: 1) Calculate depreciation expense for the machine for the year ended December 31, 2020. 1) Calculate depreciation expense for the machine for the year ended December 31, 2021.