7. Mr. Y acquired his business' building with a 10-year useful life on October 1, 2010. As ofDecember 31, 2018, the carrying value of the buiding is P1,040,000. The building can be sold atthe estimated value of P200,000 at the end of its useful life. Based on the given data, what is thecost of the Building acquired by Mr. Y? *

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

Answered: 7. Mr. Y acquired his business'…

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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3)On November 1, 2021, Ning Corp places a new asset into service. The cost of the asset is $65,000 with an estimated 5-year life and $20,000 salvage value at the end of its useful life. What is the depreciation expense for 2022 if Ning Corp uses the straight-line method of depreciation? a)$9,000 b)$16,000 c)$2,667 d)$4,000
10.
On May 22, 2020, Colossal Corporation purchased machinery for $80,000. The useful life of this machinery is estimated at 10 years, with a $10,000 residual value. (i). Assume that Colossal uses straight-line depreciation and the half-year convention. Depreciation expense on this machinery will be: Select one: O a. $4,000 in 2020 and $8,000 in 2021 O b. $3,500 in 2020 and $7,000 in 2021 O c. $8,000 in 2020 and $8,000 in 2021 d. $7,000 in 2020 and $7,000 in 2021
PEARS Company owned three investment properties. Details of the properties are in the table: Each property had an estimated useful life of 50 years. The accounting policy is to use the fair value model for investment properties. What is the gain or loss to be recognized for the year ended December 31, 2020?
ABC Ltd acquired an item of machinery on 1 July 2021 for a cost of $120 000 When the asset was acquired it was considered that the asset would have a useful life to the entity of five years, after which time it would have no residual value It was considered that the pattern of economic benefits would best be reflected by applying the sum-of-digits method Contrary to expectations, on 1 July 2023 the asset was sold for $80 000 Required 1. What was the profit on disposal on 1 July 2023 and what are the journal entries to record the disposal? (Use sum of digit depreciation method) 2. Prepare Depreciation Schedule for the period.
FDN Company acquires a building on April 1, 2021 at a cost of P52,500,000. The building has an estimated useful life of 40 years and an estimated salvage value of P500,000. How much is the depreciation expense for the year ended December 31, 2021?
b) On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000 when its’ carrying value in Liala Ltd book was $600000 (costs $900000, accumulated depreciation $300000). This plant has a remaining useful life of five (5) years form the date of sale. The group measures its property plants and equipment using a costs model. Tax rate is 30 percent.Required:Pass the necessary entries on 30 June 2017 and 30 June 2018 to eliminate the intra-group transfer of equipment
James Inc. purchased the following assets in February 2022 for a total price of $2,900,000. Below are the assets with their corresponding fair market value: Asset Description Fair Market Value Equipment $650,000 Office Furniture 1,190,000 Computer Equipment 960,000 Required: Calculate the depreciation in 2022 for the office furniture assuming they elect to use section 179 on the office furniture.
N1.
Bhaskar purchased a new factory building and land on September 10, 2021, for $3,700,000. ($500,000 of the purchase price was allocated to the land.) He elected the alternative depreciation system (ADS). Determine the cost recovery deduction for 2022. O $80,000 Ob. $82,048 O $21,328 Od $92,500
Lopez acquired a building on June 1, 2017, for $9,644,500. Compute the depreciation deduction assuming the building is classified as (a) residential and (b) non residential. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. a. Calculate Lopez's cost recovery deduction for 2022 if the building is classified as residential rental real estate. b. Calculate Lopez's cost recovery deduction for 2022 if the building is classified as nonresidential real estate.
Jenny constructed a building for use as a residential rental property. The cost of the building was $164,976, and it was placed in service on August 1, 1998. The building has a 27.5-year MACRS life. What is the amount of depreciation on the building for 2020 for tax purposes? a.$6,547 b.$6,000 c.$3,000 d.$2,250 e.None of these choices are correct.

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