On this date, the fair value of the machine is P4,900,000 and the cost of disposal is P50,000. How much is the gain or loss in the reclassification in 2019? *

Oriole Corporation purchased a machine on January 2, 2020, for $4300000. The machine has an estimated 5-year life with no salvage value. The straight-line method of depreciation is being used for financial statement purposes and the following MACRS amounts will be deducted for tax purposes: 2020 $860000 2023 $494500 2021 1376000 2024 494500 2022 825600 2025 249400 Assuming an income tax rate of 20% for all years, the net deferred tax liability that should be reflected on Oriole's balance sheet at December 31, 2021 be $103200 $73100 $0 $6880

Jason Co purchased a machinery for £100,000 on 1/1/2018. It had an estimated useful life of ten years and it was depreciated using the reducing balance method at a rate of 20%. On 1/1/20 it was decided to change the depreciation method to the straight line. There was no change to the useful life, and no residual value is anticipated.   What are the accumulated depreciation and the net book value of the asset for the year ended 31 December 2021?

The Kaltec Construction Company purchased a piece of machinery on June 29, 2013 for $53 000. Freight costs came to $800. It cost $1 700 to install and test the machinery. At this time it was estimated that the machine would be used for six years and would have a residual value of $8 000 at that time. Before recording the 2016 amortization expense, the owners realized that this machinery would last only five years, and therefore revised the amortization expense calculation. On July 2, 2017, the machine broke down and rather than repair it, the company decided to sell it for $12 000. a) Prepare the journal entry to record the purchase of the machine on June 29, 2013. b) Calculate the amortization charges that would appear on the December 2013, 2014 and 2015 income statements, using the straight line method of amortization. c) Show the journal entry for the 2013 amortization. d) Show how the machine would appear in the Kaltec Construction Company Balance Sheet on December 31, 2015,…

The M&M Company purchased a new punchpress in 2005 at a cost of $265,000. M&M alsopaid $46,000 to have the punch press delivered andinstalled. The punch press has an estimated useful lifeof 12 years, but it will be depreciated using MACRSover its seven-year property class life.(a) What is the cost basis of the punch press?(b) What will be the depreciation allowance in eachyear over seven years?