How is 165,000 computed for the additional accumulated depreciation? Trade in Allowance ₱400,000Less: Book value Cost₱1,300,000 Less: Accumulated Depreciation (₱660,000 + ₱165,000)825,000475,000Loss on Trade In - October 1, 2021 -₱75,000 PROBLEM 24-14Logan's Turf Farm Co. owned the following items of property, plant andequipment as at December 31, 2020:gune neuLP2,400,000Land (at cost)Office building (at cost)Accumulated depreciationTurf cutter (at cost)Accumulated depreciationWater desalinator (at fair value) to san00001P3,100,000562,500P1,300,000660,0002,537,50000.02000009640,000?no 3,780,000000 8814Additional information (at December 31, 2020)The straight-line method of depreciation is used for all depreciable items ofproperty, plant and equipment. Depreciation is charged to the nearestmonth.000,288The office building was constructed on April 1, 2017. Its estimated usefullife is 20 years and it has an estimated residual value of P100,000.The turf cutter was purchased on January 1, 2018, at which date it had anestimated useful life of five years and an estimated residual value ofP200,000.The water desalinator was purchased and installed on January 1, 2019 at acost of P4,000,000 with estimated useful life of 10 years and estimatedsalvage value of P200,000. On December 31, 2020, the desalinator wasrevalued to its fair value on that day. Additionally, its useful life wasincreased to ten years and its residual value was increased by P70,000. On December 31, 2021, the fair value of the water desalinator plant wasThe following transactions occurred during the year ended December 31. 2021.On April 10, 2021, new irrigation equipment was purchased from PondSupplies for P740,000. On April 16, 2021, the business paid P10,000 to havethe equipment delivered to the turf farm. B Digger was contracted to installand test the new system. In the course of installation, pipes worth P4.000were damaged and subsequently replaced on July 4. The irrigation systemwas fully operational by July 10 and B digger was paid P192,000 for hisservices. The system has an estimated useful life of four years and noresidual value.On October 1, 2021, the turf cutter was traded in on a new model worthP800,000. A trade-in allowance of P400,000 was received and the balancewas paid in cash. The new machine's useful life and residual value wereestimated at six years and P50,000 respectively.On March 1, 2021, the turf farm's owner Marc Logan decided to extend theoffice. building by adding three new offices and a meeting room. eextension commenced on March 10 and was completed by April 10 at a cof P980,000. The extension is expected to increase the useful life of ulebuilding by four years and increase its residual value by P100,000.On December 31, 2021, the fair value of the water desalinator plant "P3,400,000.(000

solution the original cost of Turf cutter =1300000 date of purchase =January 1 2018…

Answered: How is 165,000 computed for the…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.6E

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The property, plant, and equipment section of the Jasper Company's December 31, 2023, balance sheet contained the following: Property, plant, and equipment: Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Total property, plant, and equipment Machine 101 102 103 Cost $ 48,400 79,000 20,000 Date Acquired 1/1/2021 6/30/2022 9/1/2023 $ 780,000 (150,000) 147,400 Residual Value $ 6,000 7,000 2,000 ? The land and building were purchased at the beginning of 2019. Straight-line depreciation is used and a residual value of $30,000 for the building is anticipated. The equipment is comprised of the following three machines: $ 110,000 Life (in Years) 8 9 8 630,000 ? ? The straight-line method is used to determine depreciation on the equipment. On March 31, 2024, Machine 102 was sold for $54,000. Early in 2024, the useful life of machine 101 was revised to five years in total, and the residual value was revised to zero. Required: 1. Calculate the accumulated…

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Trade in Allowance		₱400,000
Less: Book value
Cost	₱1,300,000
Less: Accumulated Depreciation (₱660,000 + ₱165,000)	825,000	475,000
Loss on Trade In - October 1, 2021		-₱75,000

How is 165,000 computed for the additional accumulated depreciation? Trade in Allowance ₱400,000 Less: Book value Cost ₱1,300,000 Less: Accumulated Depreciation (₱660,000 + ₱165,000) 825,000 475,000 Loss on Trade In - October 1, 2021 -₱75,000