On January 1, 2016, Makakaya Co. acquired machinery with a cost of P2,200,000 with an estimated useful life of 10 years and an estimated salvage value of P200,000. On January 1, 2017, the machinery has a recoverable amount (fair value) of P1,280,000 with an estimated useful residual value of P155,000. On January 1, 2019, based on objective evidence, the machinery was found to have been impaired. The machinery now has a recoverable amount (fair value) of P600,000 with an estimated residual value of P40,000. 2016 2017 CA

On January 1, 2016, Makakaya Co. acquired machinery with a cost of P2,200,000 with an estimated useful life of 10 years and an estimated salvage value of P200,000. On January 1, 2017, the machinery has a recoverable amount (fair value) of P1,280,000 with an estimated useful residual value of P155,000. On January 1, 2019, based on objective evidence, the machinery was found to have been impaired. The machinery now has a recoverable amount (fair value) of P600,000 with an estimated residual value of P40,000. 2016 2017 CA

Name: On January 1, 2016, Makakaya Co. acquired machinery with a cost of P2,
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Description: On January 1, 2016, Makakaya Co. acquired machinery with a cost of P2,200,000 with an estimated useful life of 10 years and an estimated salvage value of P200,000. On January 1, 2017, the machinery has a recoverable amount (fair value) of P1,280,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 8P

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A company acquired machinery with cost of P2,200,000. with an estimated useful life of 10 years and estimated salvage value of P200,000 on January 1, 2018. The machinery has a recoverable amount (fair value) of P2,990,000 with an estimated residual value of P200,000 on January 1, 2019. On January 1, 2021, based on objective evidence, the asset was found to have been impaired. The machinery now has a recoverable amount (fair value) of P939,500 with an estimated value of P40,000. QUESTION: Based on the above data, answer the following: Assuming the company is using cost model, answer the following: How much is the depreciation in 2018? How much is the revaluation surplus on January 1, 2019? How much is the depreciation in 2019? How much is the impaired loss in 2021? How much is the depreciation in 2021?
A company acquired machinery with cost of P2,200,000. with an estimated useful life of 10 years and estimated salvage value of P200,000 on January 1, 2018. The machinery has a recoverable amount (fair value) of P2,990,000 with an estimated residual value of P200,000 on January 1, 2019. On January 1, 2021, based on objective evidence, the asset was found to have been impaired. The machinery now has a recoverable amount (fair value) of P939,500 with an estimated value of P40,000. QUESTION: Based on the above data, answer the following: Assuming the company is using revaluation model. Answer the questions: How much is the depreciation in 2018? How much is the revaluation surplus on January 1, 2019? How much is the depreciation in 2019?
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