On December 31, 2011, Lin Co. purchased an equipment with an estimated useful life of 10 years. The equipment was expected to have a residual value of P5,000 at the end of its service life. The sum-of-the-years-digits method was used in computing depreciation. For the year ended December 31, 2015, the depreciation applicable to this equipment was P42,000. What was the acquisition cost of the equipment? a. P335,000 c. P293,750 b. P330,000 d. P325,000

The company purchased on October 1, 2017 an equipment for P850,000. The equipment had an estimated useful life of 8 years. The estimated salvage value was estimated at P50,000 at the end of its useful life. The equipment being depreciated using the double declining balance method. What is the amount of the depreciation to be charged against 2018 income

At the beginning of 2009, Glass Manufacturing purchased a new machine for its assembly line at a cost of $600,000. Th e machine has an estimated useful life of 10 years and estimated residual value of $50,000. Under the straight-line method, how much depreciation would Glass take in 2010 for fi nancial reporting purposes? A . $55,000.

On January 1, 2018, Kefauver Company purchased a piece of equipment for $375,000. The equipment had a useful life of 10 years and a residual value of $10,000. The company initially starts recording depreciation on a straight-line method. The following independent situations occur at the beginning of 2020: The life of the equipment was originally estimated to be 10 years but due to the wear and tear on the machine they changed it to a remaining life of 7 years. а. b. It was discovered that when initially recorded on the books the residual value had been ignored. Required: Prepare all journal entries related to the equipment for 2020 for each of the independent situations, ignoring income taxes.

Munabhai

Dewey Corporation purchased a machine for $340,000 on January 1, 2012. The machine had an                     estimated useful life of 12 years and an estimated residual value of $40,000. The machine was                     depreciated using the straight-line method.                                           On April 1, 2021, the company no longer needed the machine and sold it for $80,000. Dewey takes                     a half-year depreciation for the year an asset is disposed.                                           a. What is the book value of the machine at the end of 2020?                                           b. Calculate and record the depreciation for 2021 in the journal provided.                                           c. Calculate the book value of the machine at the time of sale.                                           d. Record the sale of the machine on April 1 in the journal provided.

On January 1, 2017 the Ivanhoe company records show equipment 38000 and accumulated depreciation 13840. The depreciation resulted from using The straight line method with our useful life of 10 years and a salvage value of 3400. On this date the company concludes that the equipment has are remaining useful life of only 4 years with the same salvage value. Calculate the revised annual depreciation.

The Vermont Construction Company purchased a hauling truck on January 1, 2009 at a costof $35,000. The truck has a useful life of eight yearswith an estimated salvage value of $6,000. Thestraight-line method is used for book purposes. Fortax purposes, the truck would be depreciated with theMACRS method over its five-year class life. Determine the annual depreciation amount to be taken overthe useful life of the hauling truck for both book andtax purposes

On January 2, 2017, Union Co. purchased a machine for P264,000 and depreciated it by the straight-line method using an estimated useful life of eight years with no salvage value. On January 2, 2020, Union determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of P24,000. An accounting change was made in 2020 to reflect the additional data. The accumulated depreciation for this machine should have a balance at December 31, 2020, of O 146,000 O 154,000 O 176,000 O 160,000

Equipment was acquired on January 1, 2013, at a cost of $75,000. The equipment was originally estimated to have a salvage value of $5,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2016, using the straight-line method. On January 1, 2017, the estimated salvage value was revised to $7,000 and the useful life was revised to a total of 8 years. (A) Calculate the book value at the time of the revision (January 1, 2017). (B) Determine the depreciation expense for 2017