loss on replacement to be recognized for 2020?
Q: n March 2, 2021, HABIBIYUCK bought an equipment costing P1,200,000. It is the Company’s policy to…
A: Solution: Depreciation rate - SLM = 1/10 = 10% Deprecation rate - DDB = 10%*2 = 20% Depreciation for…
Q: On January 1, 2018, Alan Company purchased an equipment for P8,000,000. The equipment is depreciated…
A: Gain is the amount of money earned on the sale of assets.
Q: Haemul Pajeon Company purchased a machine on January 2, 2018 for P500,000. The machine has an…
A: 1. Asset Value =P500,000 Estimated useful life = 8 years Depreciation Amount for 2018 = (Asset…
Q: On August 31, 2019, CROCUS Company purchased a new machinery for ₱540,000. The machinery has an…
A: Depreciation is known as a decline in the value of tangible assets over their useful life. it is a…
Q: On January 2, 2020, VSG purchased a transportation equipment costing P2,400,000. The new asset has…
A: Accumulated depreciation, December 31, 2022 = P2,400,000 x 2/8 = P600,000 Carrying value, December…
Q: On October 1, 2021, Bonita Company places a new asset into service. The cost of the asset is $129000…
A: Under straight line method of depreciation, the depreciation is calculated by dividing the…
Q: . On January 1, 2019, Tarlac Company acquired a machine for P4,500,000. The machine has a useful…
A: Depreciation is a method of accounting that distributes the expense of a tangible or physical asset…
Q: On April 1, 2019, the KB Toy Company purchased equipment to be used in its manufacturing process.…
A:
Q: Bonita Industries purchased a machine for $66800 on July 1, 2020. The company intends to depreciate…
A: Double-declining balance method (Accelerated method): In this method of depreciation, the…
Q: equired:
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: On January 1, 2017, Global Manufacturing purchased a machine for $540,000 that it expected to have a…
A: disposal of assets:- It involves eliminating assets from accounting records. Loss on sale. Debit…
Q: Dewey Corporation purchased a machine for $340,000 on January 1, 2012. The machine had an…
A: Depreciation is considered as an expense charge on the value of the Asset. The most common method…
Q: Rk Co purchased a machine on 1st November 2020 at the cost of $110,000 (inclusive of GST) and…
A: As per Income tax law, depreciation on fixed cost is allowed as deduction from business income.…
Q: The gain on reversal of impairment loss on December 31, 2016 is
A: Calculate impairment loss as on April 1, 2016 as shown below: Impairment loss = Cost - Accumulated…
Q: Mortal Company acquired a machine for P3,200,000 on August 31, 2017. The machine has a 5-year useful…
A: Impairment of fixed assets means when fair value of the fixed assets is less than the carrying value…
Q: Mango Co. owns a machine that was bought on January 1, 2017, for P752,000. The machine was…
A: Depreciation Expenses:- These are those expenses that appear in the income statement of the company,…
Q: Foster Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of…
A: Compute straight-line depreciation rate.
Q: - A factory machine was purchased for $300,000 on January 1, 2020. It was estimated that it would…
A: Under units of activity method, Yearly Depreciation = (Cost of asset - salvage value)× Units…
Q: JAY Inc. decided to revalue its machine on December 31, 2019, and determined that the current…
A: Depreciation: It is the gradual fall in the value of asset due to its normal usage in the production…
Q: On July 1, 2020, Youth Corporation purchased a machine at a cost of P300,000. This machine was…
A: Cost of the machine on July 2020::P3,00,000.. Useful life is::5 years... Depreciation…
Q: Basalt Inc bought a new vehicle on September 1, 2021 for $50,000. The vehicle is estimated to have a…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: Robert Parish Corporation purchased a new machine for its assembly process on August 1, 2020. The…
A: a. Compute the straight-line depreciation for 2020.
Q: On Jan 1, 2021, ABC Company acquired a machinery at a cost of P250,000. It was estimated to have a…
A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…
Q: Dewey Corporation purchased a machine for $340,000 on January 1, 2012. The machine had an…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On April 1, 2014, Brandy Company has a machine with a cost of P1,000,000 and accumulated…
A: In order to determine the carrying value of the assets, the accumulated depreciation is required to…
Q: For the year 2020, how much should be recognized as depreciation expense?
A: Depreciation Expenses:- These are those expenses that appear in the income statement of the company,…
Q: On January 1, 2019, Tarlac Company acquired a machine for P4,500,000. The machine has a useful life…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: On January 1, 2020, Dan Company purchased a new machine for P4,000,000. The new machine has an…
A:
Q: On January 2, 2018, Lapar Corporation purchased a machine for $50,000. Lapar paid shipping expenses…
A: Various depreciable assets employed by the entity has wear and tear over the working period and…
Q: On January 1, 2016, Cookie Inc. purchased an equipment for P1,970,000. On this date, the equipment…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: A machine is purchased on May 1, 2017 costing 1,500,000 with useful life of 5 years and a residual…
A:
Q: On January 1, 2019, Woodstock, Inc. purchased a machine costing $42.400. Woodstock also paid $2.200…
A: Depreciable cost=Cost+installation-Residual value=$42,400+$2,200-$6,200=$44,600-$6,200=$38,400
Q: Waterway Industries purchased machinery on January 2, 2015, for $860000. The straight-line method is…
A: Determine the book value at the end of 2020.
Q: In January 2019, Winn Company purchased equipment at a cost on P5,000,000. The equipment has a…
A: Impairment of assets means reducing the book value of assets when carrying amount is more than…
Q: Apple Co. purchased a machine on January 1, 2019, for P180,000 cash. The machine has an estimated…
A: following is the answer to the given question
Q: MKG, Inc. paid $400,000 for a piece of equipment that is expected to have a 12 year useful life. In…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: On January 1, 2020, a machine was purchased for $900,000 by Young Co. The machine is expected to…
A: A. Following are the calculation of income before income tax:
Q: BLACK JACK Company purchased an automotive equipment on June 30, 2018 for P3,000,000. At the date of…
A: Depreciation is charged on the value of fixed assets due to normal usage , wear and tear and change…
Q: ABC Inc. purchased a machine on January 1, 2014 for 900,000. This asset will be depreciated for 10…
A: Replacement cost - Replacement cost is the cost incurred to improve the performance of the assets.…
Q: On September 7, 2020, Paseo Company incurred the following costs for one of its printing presses:…
A: Capitalized cost is defined as the expense or cost which is added back to the fixed asset cost basis…
Q: n July 1, 2020, Youth Corporation purchased a machine at a cost of P300,000. This machine was…
A: An impairment loss is recorded when there is permanent drop in the value of an asset such that its…
Q: ABC, Inc. purchased a crane on January 1, 2018, for P205,500. At the time of purchase, the crane was…
A: Under straight line method of recording depreciation, equal amount of depreciation expense is…
Q: Jersey Corporation, which has a calendar year accounting period, purchased a machine for $400,000 on…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: Spiral Company uses the sun-of-the years’ digits method to depreciate equipment purchased in January…
A: Solution: Depreciation is a reduction in the value of an asset over time, due to normal wear and…
Q: Concord Corporation, which has a calendar year accounting period, purchased a new machine for $95400…
A:
Q: Bonita Industries purchased a new machine on May 1, 2012 for $561600. At the time of acquisition,…
A: Calculate the loss recognized from the sale of machine:
Q: On July 1, 2020, New Orleans Corporation purchased equipment at a cost of P340,000. The equipment…
A: Depreciation rate = ( 100 / Useful life ) x 2
Q: Waterway Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of…
A: Depreciation - It is the method of allocating the cost of physical or tangible assets over its…
A Company purchased a machine on January 1, 2014 for P900,000. This asset will be
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- At the end of 2020, Magenta Manufacturing Company discovered that construction cost had been capitalized as a cost of the factory building in 2015 when it should have been treated as a cost of production equipment installation costs. As a result of the misclassification, the depreciation through 2018 was understated by 110,000, and depreciation for 2019 was understated by 90,000. What would be the consequences of correcting for the misclassification of the property cost? a. The taxpayer uses the FIFO inventory method, and 25% of goods produced during the period were included in the ending inventory. b. The taxpayer uses the LIFO inventory method, and no new LIFO layer was added during 2019.Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?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.
- Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.
- Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.Alfredo Company purchased a new 3-D printer for $900,000. Although this printer is expected to last for ten years, Alfredo knows the technology will become old quickly, and so they plan to replace this printer in three years. At that point, Alfredo believes it will be able to sell the printer for $15,000. Calculate yearly depreciation using the double-declining-balance method.Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a straight-line basis over a useful life of 10 years and used a residual value of $12,000. Chapmans depreciation expense for 2019 was $11,000. What was the original cost of the building? a. $98,000 b. $110,000 c. $122,000 d. $134,000
