Orange Company purchased a drilling machine in 2010 for P240,000. The machine was depreciated on the straight-line method over an estimated useful life of 20 years, with no salvage value. At the beginning of 2020, when the machine had been in use for 10 years, the company paid P40,000 to overhaul the machine. As a result of this improvement, the company estimated that the useful life of the machine would be extended an additional 5 years. What would be the depreciation expense recorded for the machine in 2020? * P8,000 P10,667 P12,000 P14,667 answer not given

Q: AG&M Cutting Tools Company purchased a new abrasive jet-cutting machine in 2012 at a cost of…

A: a.   Compute the value of cost basis of the machine:   Hence, the value of cost basis of the…

Q: Archer Company purchased equipment in January of 2011 for P90,000. The equipment was being…

A: Depreciation Expense (Straight Line Method) = Cost - Salvage ValueUseful Life of an Asset

Q: A piece of equipment was purchased by Jonesy’s Ltd. on April 10, 2016 at a cost of $35,000. It is…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: Buhner Company constructed a building at a cost of $3,000,000 and occupied it beginning in January…

A: Formula:

Q: JME acquired a depreciable asset on January 1, 2014, for $60,000 cash. At that time JME estimated…

A: Calculate the depreciation expense for first two years.

Q: Orange Company purchased a drilling machine in 2010 for P240,000. The machine was depreciated on the…

A: The depreciation is a reduction in the book value of the fixed asset of the business.

Q: On July 1, 2020, Zelensky Company, a calendar-year company, purchased a machine for a cash price of…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: George Zidek Corporation bought a machine on June 1, 2018, for $31,000, f.o.b. the place of…

A:

Q: Kenya Company acquired a machine on January 1, 2013 for P8,000,000. The machine has a 10-year useful…

A: Given data, Cost on January 1,2013 =P8,000,000 Residual value =P500,000 Useful life =10 years   The…

Q: The Erley Equipment Company purchased a machine 5 years ago at a cost of $100,000. The machine had…

A: Capital budgeting techniques helps a company to select among the alternative available investment to…

Q: Fontaine Ltd. acquired a machine for $600,000 on January 1, 2022. The machine has a salvage value of…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: ABC Company purchased a tooling machine on January 3, 2000 for P500,000. The machine was being…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: At the beginning of 2009, Glass Manufacturing purchased a new machine for its assembly line at a…

A: Formula:

Q: On January 2, 2000, the Ajax Plumbing Corporation purchases an automatic soldering machine for…

A: SLM and DDBM are two methods of depreciation, where SLM stands for straight line method where we…

Q: On January 1, 2011, RIGHTEOUS MORAL Co. acquired a piece of equipment for ₱2,000,000. The equipment…

A: Discount rate = 10% Revised useful life = 4 years Annual cash flows from revenues = P200,000 Present…

Q: On Jan. 1, 2020, the construction of a high-tech condominium building was completed for a total cost…

A: Depreciation is the amount of reduction in the cost of the assets due to use of the assets,…

Q: On January 1, 2016, the Key West Company acquired a pie-making machine for $50,000. The machine was…

A: Depreciation - It is the fall in the value of the fixed asset due to various reasons like accident,…

Q: CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying $1,000,000,…

A: Depreciation - It refers to the fall in the value of fixed assets due to wear and tear. It is a…

Q: NUBD Co. purchased a new machine on January 1 of this year for an amount of P85,000, with an…

A: Bail payback is calculated to know the length of time needed to pay back the initial invested amount…

Q: CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying ₱1,000,000,…

A: In case of purchase of fixed asset under instalment method, then amount paid by way of number of…

Q: Flounder Company purchased a new machine on October 1, 2022, at a cost of $110,000. The company…

A: Depreciation: Depreciation is a technique of distributing the cost of a tangible or physical asset…

Q: in 2020, Tableta company paid P4,000,000 to purchase a land containing a total estimated 160,000…

A: Annual depreciation= (cost of the assets  - residual value) / life of the assets = (P1,500,000-0) /…

Q: The Potter Corporation purchased a machine on January 1, 2020. The machine cost P 46,000, with an…

A: Solution..     Cost = P46,000  Estimated salvage value = P2,000  Life = 10 years

Q: The Erley Equipment Company purchased a machine 5 years ago at a cost of $100,000. The machine had…

A: Given  Old machine purchase price - $100,000 Life -10 years - remaining life 5 years Salvage value…

Q: At the beginning of 2009, Glass Manufacturing purchased a new machine for its assembly line at a…

A: The formula to compute depreciation under straight line method as follows:

Q: Spears Corporation bought a machine on January 1, 2016. In purchasing the machine, the company paid…

A: solution given Cash paid for  asset $50000 Not issued $100000 Total cost of asset…

Q: Cheyenne Corp. purchased a new machine on October 1, 2022, at a cost of $131,000. The company…

A: Depreciation per hour (Units of production method) =(cost of Asset - salvage value )  / Estimated…

Q: Pears Company purchased a new machine on January 1 of this year for an amount of P90,000, with an…

A: At the end of the year Cash inflow Salvage value Cumulative payback 1 P36,000 P20,000 P56,000 2…

Q: On July 1, 2019, Amplex Company purchased a coal mine for $2 million. The estimated capacity of the…

A: The answer is stated below:

Q: Cullumber Company purchased a new machine on October 1, 2022, at a cost of $110,000. The company…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5 years) x 2 = 40%

Q: Marigold Company constructed a building at a cost of $2,288,000 and occupied it beginning in January…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: On May, 1, 2020, Star Mines Inc. purchased an ore mine for $2,400,000 to access an estimated…

A: Solution: The ore mine should be recorded at = Purchase cost of mine + Development cost + Present…

Q: On January 2, 2018, Lapar Corporation purchased a machine for $50,000. Lapar paid shipping expenses…

A: Various depreciable assets employed by the entity has wear and tear over the working period and…

Q: On January, 2023, Big Company purchased a mineral mine for P2,640,000 with removable ore estimated…

A: Depletion expenses: Depletion expenses is the reduction in the profit due to the use of natural…

Q: MKG, Inc. paid $400,000 for a piece of equipment that is expected to have a 12 year useful life. In…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Bolan Company purchased a tooling machine on January 3, 2014 for $500,000. The machine was being…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: The Apex Company purchased a tooling machine for $30,000. The machine was being depreciated on the…

A: Under the straight line method, depreciation expense each year = (cost - salvage value) / useful…

Q: Haystack company purchased a machine on January 1, 2015 for $48,000. The company estimates that the…

A: This question deals with the calculation selling price of machine with $3,500 gain. We first need to…

Q: Arabs Company purchased a machine for P650,000 on January 1, 2016. The estimated salvage value of…

A: Cost of machine = P 650,000 Salvage value = P 46,500 Life = 10 Years Used period (From Jan 1 2016 to…

Q: Required: 1. Prepare schedules to determine whether, at the end of 2019, the machinery is impaired…

A: Requirement 1:

Q: n July 1, 2020, Youth Corporation purchased a machine at a cost of P300,000. This machine was…

A: An impairment loss is recorded when there is permanent drop in the value of an asset such that its…

Q: Martinez Company constructed a building at a cost of $2,464,000 and occupied it beginning in January…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear.There are…

Q: On Jan. 1, 2015, ABC Leasing Inc. acquired a building for a total capitalizable cost of P20,000,000.…

A: Revaluation surplus arises in a situation when revalued value of the asset is more than carrying…

Q: On January 1, 2003, Superior Landscaping Company paid P17,000 to buy a stump grinder. If Superior…

A: Depreciation is the gradual conversion of the cost of a  fixed asset into expense. It is a charge…

Q: NUBD Co. purchased a new machine on January 1 of this year for an amount of P85,000, with an…

A: The bailout period is similar to the payback period, the difference between them is that the bailout…

Q: The Giovanni Company purchased a tooling machine in 2007 for $120,000. The machine was being…

A: Solution: Initial annual depreciation using SLM = $120,000 / 20 = $6,000 Carrying value of machine…

Q: Show the calculation of the amount of gain or loss to be recognized by Susan Co. from the exchange.

A: Depreciation:   Depreciation refers to the reduction in the monetary value of a fixed asset due…

Q: Bonita Industries purchased a new machine on May 1, 2012 for $561600. At the time of acquisition,…

A: Calculate the loss recognized from the sale of machine:

Q: On January 1, 2014, Barbed Company purchased an equipment for P900,000, with an estimated useful…

A: 1. Recoverable value is higher of fair value less cost of sale and value in use       fair value -…