On Jan 1, 2021, ABC Company acquired a machinery at a cost of P250,000. It was estimated to have a useful life of 10 years and no residual value. The company uses the cost model to account for the machinery and the straight-line method is used in depreciating the machinery. On Dec 31, 2022, the company tested the machinery for possible impairment and determined that the recoverable value of the said machinery amounted to P150,000. On Dec 31, 2023, it was revealed that the recoverable value of the machinery had increased to P187,500. Q-29. 8.How much is the impairment loss reported in 2022? 9.What is the carrying amount of the machinery on Dec 31, 2023 before reversal of impairment? 10.What is the carrying amount of the machinery on Dec 31, 2023 on the basis that it was not impaired?

Concord Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $129,600. The company estimated that the machine would have a salvage value of $12,600 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to O decimal places, e.g. 45,892.) (a) Straight-line depreciation for 2025 (b) (c) (d) Activity method for 2025, assuming that machine usage was 800 hours Sum-of-the-years'-digits for 2026 Double-declining-balance for 2026 $ $ LA $ 9,750 4,680 31,200 43,200

Oriole Company purchased a machine on January 1, 2019, for $927000. At the date of acquisition, the machine had an estimated useful life of 6 years with no salvage. The machine is being depreciated on a straight-line basis. On January 1, 2022, Oriole determined, as a result of additional information, that the machine had an estimated useful life of 8 years from the date of acquisition with no salvage. An accounting change was made in 2022 to reflect this additional information.Assume that the direct effects of this change are limited to the effect on depreciation and the related tax provision, and that the income tax rate was 40% in 2019, 2020, 2021, and 2022. What should be reported in Oriole's income statement for the year ended December 31, 2022, as the cumulative effect on prior years of changing the estimated useful life of the machine? $463500 $61800 $0 $92700

On January 1, 2022, Betty DeRose, Inc. purchased equipment for $86,000. The equipment was assigned a useful life of 12 years and a salvage value of $5,300. On January 1, 2026, Betty DeRose decided the life of the equipment should be changed from 12 to 18 years with a salvage value of $3,800 at the end of the 18 years. Betty DeRose uses the straight-line depreciation method to calculate depreciation on its long-term assets. Calculate the amount of depreciation expense recorded on the equipment for 2026.

Annual depreciation expense on a building purchased a few years ago (using the straight-line method) is $4,800. The cost of the building was $96,000. The current book value of the equipment (January 1, 2021) is $81,600. At the time of purchase, the asset was estimated to have a zero salvage value. On January 1, 2021, the company decided to reduce the original useful life by 25% and to establish a salvage value of $4,800. The firm also decided double-declining-balance depreciation was more appropriate. Ignore tax effects. 1. Prepare the journal entry, if any, to report the accounting change under GAAP. 2. Record the annual depreciation for 2021.

On August 31, 2019, CAMELLIA Company purchased a new machinery for ₱540,000. The machinery has an estimated useful life of 5 years and depreciation is computed using the SYD method. Estimated salvage value of the machine is ₱60,000.   Questions: What is the total accumulated depreciation on December 31, 2020?  If CAMELLIA decides to change its depreciation method to straight-line at the start of 2021, what is the depreciation expense for the year ended December 31, 2021? *   Present solutions.

On January 1, 2021, Slim Inc. purchased machinery for $350,000. The machinery had an estimated useful life of 10 years and a salvage value of $35,000. The company elected to use sum-of-years digits depreciation. At the beginning of 2025, Slim decided to switch to the straight-line method of depreciation and reassessed the remaining useful life of the machinery to be 4 years with no change in the salvage value. A change in depreciation methods together with a change in the useful life of the asset is   Question 26Answer a.   a change in accounting principle.   b.   an error correction.   c.   a change in accounting principle effected as a change in accounting estimate.   d.   a change in accounting estimate.

On January 1, 2020, Cullumber Corp. acquired a machine at a cost of $1020000. It is to be depreciated on the straight-line method over a 5-year period with no residual value. Because of a bookkeeping error, no depreciation was recognized in Cullumber's 2020 financial statements. The oversight was discovered during the preparation of Cullumber's 2021 financial statements. Depreciation expense on this machine for 2021 should be $255000. $204000. $408000. $0.

Oklahoma Company purchased a machine on January 1, 2020. The machine had a cost of $520,000 with a $20,000 residual value. The estimated useful life of the machine was eight years. On January 1, 2022, due to technological innovations, the estimated useful life was reduced by two years from the original life and the residual value was reduced by 50%. The company uses straight-line depreciation.   Required: Prepare the journal entry to record the annual depreciation on December 31, 2022. Show your calculations before you post the journal entry.

During 2018, Concord Tools Ltd., a Canadian public company, purchased a building site for its product development laboratory at a cost of $55,900. Construction of the building started in 2018. The building was completed in late December 2019 at a cost of $168,600 and placed in service on January 2, 2020. The building's estimated useful life for depreciation purposes is 15 years. The straight-line method of depreciation is used and there is no estimated residual value. After the building went into service, several projects were begun and many are still in process. Management estimates that about 50% of the development projects will result in long-term benefits (for at least 10 years) to the corporation. The other projects either benefited the current period or were abandoned before completion. A summary of the different projects, their number, and the direct costs that were incurred for development activities in 2020 appears in the table that follows. On the recommendation of its…