On April 1, 2018, Mugiwara Co. purchased a building for P100,000,000. The building has an estimated life of 50 years. 9 months depreciation was taken on the year of purchase and the book value of the building on December 31,2023, after depreciation
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A: Given: To calculate the revaluation surplus on Dec 31, 2020 as,
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A: Solution Carrying amount of asset is the amount in which accumulated depreciation is deducted from…
Q: On April 1, 2018, Mugiwara Co. purchased a building for P100,000,000. The building has an estimated…
A: Depreciation is an expense for a company which they reported under the expense side of income…
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A: The question is multiple choice question Required Choose the Correct Option.
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A: Revaluation surplus = carrying amount - revalued amount
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Q: On January 5, 2021, Lighter Company acquired a building. The building had an estimated useful life…
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Q: Tristen Company purchased a five-story office building on January 1, 2019, at a cost of $6,400,000.…
A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage ,…
Q: On January 1, 2020, DAHLIA Company showed land with a carrying amount of ₱10,000,000 and building…
A: Straight line method is a method of depreciation under same amount is charged as depreciation in…
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A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
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- 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?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.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.
- Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.Client A acquired a property on 31 December 2012 for P250,000. The asset is expected to be used within 10 years and will be sold at 5% of the acquisition cost afterwards. Prepare the depreciation schedules using the three methods of computing annual depreciation (i.e., straight-line method, sum-of-the-year’s digit method, and double-declining balance method). The depreciation schedules must show the annual depreciation charges and book values. Compare the three methods in terms of the average book value of the asset in its mid-life (fifth year).The Fisher Company purchased a machine on October 1, 2018, for $18,000. At the time of acquisition, the machine was estimated to have a useful kufe if five years and an estimated salvage of $5,000. Fisher has recorded monthly depreciation using the straigh-line method. On April 1, 2020, the machine was sold for $50,000. What should be the loss recognized from the sale of the machine? a. $0 b. $2,500 c. $5,000 d. $7,500
- On July 1, 2015, Ling Company purchased a building for P49,200,000. The building has an estimated life of 40 years. Six months depreciation was taken in the year of purchase and the book value of the building on December 31, 2019, after the depreciation adjusting entry is P43,755,000. What is the salvage value of the building?Wildhorse Company purchaseda hot tub for $ 11,790 on January 1, 2016. Straight-line depreciation is used, based on a 6-year life and a $ 1,890 salvage value. In 2018, the estimates are revised. Wildhorse now feels the hot tub will be used until December 31, 2020, when it can be sold for $ 885. Compute the 2018 depreciation. Depreciation expense, 2018 %24Gandolfi Construction Company purchased a CAT 336DL earth mover at a cost of $415,000 in January 2022. The company's estimated useful life of this heavy equipment is 20 years, and the estimated salvage value is $84,000. Required: a. Using straight-line depreciation, calculate the depreciation expense to be recognized for 2022, the first year of the equipment's life, and calculate the equipment's net book value at December 31, 2024, after the third year of the equipment's life. b. Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense to be recognized for 2024, the third year of the equipment's life. X Answer is not complete. $ 16.550✔ $365,350✔ a. Depreciation expense a. Net book value b. Double-declining rate b. Depreciation expense
- Al Qurum Enterprises purchased equipment for OR 72,000 on January 1, 2018. The equipment is expected to have a five - year life and a residual value of OR 6,000. Using the double - declining balance method, depreciation for 2018, and the book value at December 31, 2018, would be: Select one: Oa depreciation 28,800 and book value 37,200. b depreciation 28,800 and book value 43,200. c. depreciation 26,400 and book value 45,600 d.depreciation 26,400 and book value 36,600The Nickle Company purchased an asset for P17,000 on January 2, 2021. The asset has an expected residual value P1,000. The depreciation expense for 2021 and 2022 is shown next for three alternative depreciation methods: Year Method A Method B Method C 2021 P4,000 P6,400 P6,375 2022 4,000 4,800 3,984 Required Which depreciation method is the company using in each example? Compute the depreciation expense for 2023 and 2024 under each methodAn asset owned by PT X has the following information: initial cost = $10,000, depreciation life = 5 years, and S (salvage value) = 0. Use the SL and Te = 48% methods to tabulate CFAT. Gross income minus expenses is $5000 per year. The asset has a salvage value at year 6 of $3075. Assume income and expenses have the same value up to one year after the end of their depreciation period.
