ool Company owns an equipment costing P5,200,000 with original residual value of P400,000. The life of the asset is 10 years and was depreciated using the straight-line method. The equipment has a replacement cost of P8,000,000 with residual value of P200,000. The age of the asset is 4 years. The appraisal of the equipment showed a total revised useful life of 12 years and the company decided to carry the equipment at revalued amount. 1. Cool should initially report revaluation surplus in shareholder’s equity at -- 2. The subsequent annual depreciation should be

Q: Solid Builders Corporation purchased a transport mixer for P984 000.00. This equipment is to be…

A: The Matheson formula assumes that depreciation is a fixed charge of annual cost. Annual rate of…

Q: During the current year, Rodgers Company purchased two assets that are described as follows: Heavy…

A: The amount of a tangible asset decreased will be treated as depreciation and that of intangible is…

Q: On July 1, 2013, Farm Fresh Industries purchased a specialized delivery truck for $126,000. At the…

A: Annual depreciation = (Cost of truck - Residual value) / Life of the truck = ($126,000 - $30,000) /…

Q: Samson Company applies revaluation accounting to plant assets with a carrying value of P800,000, a…

A: Given carrying value = P 800,000 Depreciation under straight line method when there is no residual…

Q: On January 1, 1978, the purchasing engineer of a Cement Co. purchased a new machine at a cost of…

A: Depreciation is an accounting method for dispersing a tangible or physical asset's cost over its…

Q: Plummer Industries purchased a machine for $43,800 and is depreciating it with the…

A: Given: Cost of machine purchased = $ 43,800 Depreciation life = 8 years Residual value = $ 3,000…

Q: Tongas Company applies revaluation accounting to plant assets with a carrying value of $1,600,000, a…

A: The growth in value of an investment before it is sold is known as an unrealized gain. An unrealized…

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

A: Formula:

Q: A machine purchased by the Bee Buzzsaw Company originally cost $245,000. Delivery and installation…

A: The depreciation can be computed under various methods.  In case of multiple sub-parts, only first…

Q: depreciation to be charged against the machine during each of the remaining years of its useful…

A: Accounting for change in accounting estimate is envisaged in IAS 8 It is pertinent to note that the…

Q: depreciation expense on this asset

A: Depreciation expense = (Cost - Savage value) * Hours used in current year/Estimated useful life in…

Q: What is the carrying amount of the plant asset on December 31, 2014 as a result of the decrease in…

A: The company uses cost model to recognize assets. So the decrease in decommissioning liability will…

Q: On January 1, 20x2, Astro Ltd. purchased a piece of equipment costing $78,658. At the time, the…

A: Business organizations are required to charged to depreciation expense so that the assets are shown…

Q: On 1st March 2011, Earthon LLC bought Equipment to be used as a storage facility at a cost of…

A: The question is multiple choice question  Required  Choose the Correct Option.

Q: Bailand Company purchased a building for $366,000 that had an estimated residual value of $16,000…

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

Q: A machine purchased by the Bee Buzzsaw Company originally cost $245,000. Delivery and installation…

A: Cost of machine purchased=original cost+installation charges=$245000+$5000 =$250000 Useful life of…

Q: COD Company finds its records are incomplete concerning a piece of equipment used in its plant.…

A: Formula: Straight line method Depreciation : = Cost of Asset - Salvage value ) /Useful life

Q: ABC Company has an equipment costing P 700,000 with an estimated residual value of P 70,000 and an…

A: Depreciation The purpose of calculating the depreciation cost of the assets to determine the actual…

Q: Equipment with a cost of $74,874, an estimated residual value of $4,863, and an estimated life of 14…

A: Solution: Original annual depreciation = (Cost - Residual value) / useful life = ($74,874 - $4,863)…

Q: On January 1, 1978, the purchasing engineer of Itadori Co. purchased a new hydraulic machine at a…

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

Q: Madison Corporation acquired a machine for $27,000 and has recorded depreciationfor two years using…

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…

Q: A company has purchases a new machine for S7,500, and the machine is expected to have a residual…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: The entry to record depreciation for this same asset in year two will include a Select one: a.…

A: Given information is: Samson Company applies revaluation accounting to plant assets with a carrying…

Q: A building was purchased for $400,000 and depreciated for 10 years on a straight-line basis under…

A: Depreciation formula as per straight-line basis: Annual depreciation=Cost-Salvage valueUseful Life

Q: My question is this: GIPI will depreciate the gymnasium building using the straight-line method over…

A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…

Q: JIG Company has an equipment costing $1,000,000 with an estimated residual value of $100,000 and an…

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

Q: Marissa's company recently purchased a depreciable asset for $190,000. The estimated salvage value…

A: Depreciation is an outlay reported in the books of a business entity to report the regular usage of…

Q: A building was purchased on January 1, 1998, for $240,000 and straight line depreciation method was…

A: Given the following information: Building was purchased on January 1, 1998, for $240,000 Straight…

Q: ABC Company has an equipment costing P 700,000 with an estimated residual value of P 70,000 and an…

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

Q: Samson Company applies revaluation accounting to plant assets with a carrying value of P800,000, a…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: Duncan Company purchased a machine that cost $46002, has an estimated residual value of $2838, and…

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

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: Greg Maddox Company constructed a building at a cost of $2,200,000 and occupied it beginning in…

A: Depreciation is a decrease in the value of an asset due to various reasons like wear and tear,…

Q: For each of the independent situations, prepare all the journal entries relating to the building for…

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

Q: Mario Ltd purchased a machine for GHS 50,000 on 1 January 20X1. The machine was judged to have a…

A: Formula: Loss on disposal = Book value of Asset - sale value of Asset. Deduction of sale value of…

Q: Monster Inc. purchased a machine for $100,000 and depreciated it on a straight-line basis over a…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Equipment with the cost of $160,000, and estimated residual value of $40,000, and an estimate life…

A: Depreciation is a charge against profit due to wear and tear of assets due to the factor of time.

Q: A construction company is considering changing its depreciation from the MACRS method to the…

A: Depreciation refers to an accounting method or system of allocating the cost of a tangible or…

Q: Eagle Company purchased a piece of machinery for $75,000 on January 1, 20x1, and has been…

A: The FASB develops and issues financial accounting standards through a transparent and inclusive…

Q: A machine purchased by the Bee Buzzsaw Company originally cost $245,000. Delivery and installation…

A: Declaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: Samson Company applies revaluation accounting to plant assets with a carrying value of P800,000, a…

A: Depreciation for year 1 = (Cost of plant assets - Salvage value ) / Useful life of the assets =…

Q: On January 1, 2008, Bray Company purchased for 240,000 a machine with a useful life of ten years and…

A: Depreciation of an asset means a reduction in the value of the asset due to the normal wear and…

Q: A company used straight-line depreciation for equipment that cost $12,000, had a salvage value of…

A: Solution - Depreciation= (value of assets - residual value)/No. Of years of useful life (As per…

Q: On January 1, 1978, the purchasing engineer of a Cement Co. purchased a new machine at a cost of…

A: Depreciation is the allocation of cost of asset over the useful life of the asset. Under straight…

Q: Synthia, Inc., a clothing manufacturer, purchased a sewing machine for P10,000 on July 1, 20x1. The…

A: Impairment loss is incorrect because it is calculated when the fair value of any asset (or…

Q: AJ Construction is in the process of closing its operations. It sold its five-year-old Caterpillar…

A: Answer) Calculation of Book Value at the end of 5th year Book value at the end of 5th year =…

Q: ABC Company finds its records are incomplete concerning a piece of equipment used in its plant.…

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

Q: ABC Company has an equipment costing P 700,000 with an estimated residual value of P 70,000 and an…

A: If the upgrading costs improved the current condition of asset and provide extra benefit in future…

Q: ABC Company has an equipment costing P 700,000 with an estimated residual value of P 70,000 and an…

A: Costs which are incurred to improve the quality of the asset's output shall be capitalized and form…

Q: cheba construction company acquired a new crane for 360,000$ at the beginning of year 1. the crane…

A: Under straight line method, depreciation remains same every year. Depreciation under straight line…