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20 Takatak, Inc., uses the group depreciation method for its furniture account. The depreciation rate used for furniture is 21%.  The balance in the furniture account on December 31, 2019, was P125,000, and the balance in Accumulated Depreciation - Furniture was P61,000.  The following purchases and dispositions of furniture occurred in 2020 (assume that all purchases and disposals occurred at the beginning of each year).        Assets Sold  Assets Purchased  Cost  Selling Price  P35,000  P27,000  P8,000     The carrying amount of furniture at December 31, 2020 is  Group of answer choices  P71,070  P44,070  P64,750  P63,070

20 Takatak, Inc., uses the group depreciation method for its furniture account. The depreciation rate used for furniture is 21%.  The balance in the furniture account on December 31, 2019, was P125,000, and the balance in Accumulated Depreciation - Furniture was P61,000.  The following purchases and dispositions of furniture occurred in 2020 (assume that all purchases and disposals occurred at the beginning of each year).        Assets Sold  Assets Purchased  Cost  Selling Price  P35,000  P27,000  P8,000     The carrying amount of furniture at December 31, 2020 is  Group of answer choices  P71,070  P44,070  P64,750  P63,070

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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20

Takatak, Inc., uses the group depreciation method for its furniture account. The depreciation rate used for furniture is 21%.  The balance in the furniture account on December 31, 2019, was P125,000, and the balance in Accumulated Depreciation - Furniture was P61,000.  The following purchases and dispositions of furniture occurred in 2020 (assume that all purchases and disposals occurred at the beginning of each year). 

  

  

Assets Sold 

Assets Purchased 

Cost 

Selling Price 

P35,000 

P27,000 

P8,000 

  

The carrying amount of furniture at December 31, 2020 is 

Group of answer choices 

P71,070 

P44,070 

P64,750 

P63,070 

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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