Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an expected useful life of 8 years. Straight line depreciation method is in place for similar items. On January 1, 2024, the asset is appraised as having a sound value ofP4,500,000. OnJanuary1,2027, theasset hada recoverable value ofP1,375,000

Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an expected useful life of 8 years. Straight line depreciation method is in place for similar items. On January 1, 2024, the asset is appraised as having a sound value ofP4,500,000. OnJanuary1,2027, theasset hada recoverable value ofP1,375,000

Name: Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,
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Description: Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an expected useful lifeof 8 years. Straight line depreciation method is in place for similar items. On January 1, 2024, the asset is appraised ashaving a soun

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 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...

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Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an expected useful life of 8 years. Straight line depreciation method is in place for similar items. On January 1, 2024, the asset is appraised as having a sound value of P4,500,000. On January 1, 2027, the asset had a recoverable value of P1.375.000. How much is the loss on impairment should be recognized on January 1, 2027?
Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an expected useful life of 8 years. Straight line depreciation method is in place for similar items. On January 1, 2024, the asset is appraised as having a sound value ofP4,500,000. OnJanuary1,2027, theasset hada recoverable value ofP1,375,000. 64) How much is credited to the revaluation surplus as a result of the revaluation in 2024? A. 1,500,000B. 1,250,000 C. 1,000,000 D.750,000 65) What is the correct depreciation to be recognized in 2024? A. 750,000 B. 1,000,000 C. 1,250,000 D. 1,500,000 66) How much is the loss on impairment should be recognized on January 1, 2027? A. 750,000B. 500,000 C. 250,000D.0
Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an expected useful life of 8 years. Straight line depreciation method is in place for similar items. On January 1, 2024, the asset is appraised as having a sound value of P4,500,000. On January 1, 2027, the asset had a recoverable value of P1,375,000. The amount of revaluation surplus on January 1, 2024 is:
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