7. Tonyo Company uses the composite method of depreciation and has a composite rate of 25%.During 20x1, it sold assets with an original cost of P100,000 (residual value of P20,000) forP80,000 and acquired P60,000 worth of new assets (residual value of P10,000). The originalgroup of assets had the following characteristics:Total CostP250,00030,000Total Residual ValueThe above original group includes the assets sold in 20x8 but not the assets purchased in 20x8.How much is the depreciation in 20x8?Use the following information for the next four items:Page 15Light Company bought a machine for P300,000 on January 1, 20x8. The machine's useful life is 10years and it is estimated to have a zero residual value and is depreciated using the straight-linemethod.The revalued amount of the machine is as follows:December 3120x820x92x10Fair values of the machineP 360,000335,000320,000The enacted tax rate was 30% for each year8. The revaluation surplus in the equity section of Light Company's December 31, 20x8 statementof financial position is9. The amount of depreciation expense to be recognized in 20x9 is .

Depreciation = Cost - Residual Value / No of Useful life of an Asset.

7. Tonyo Company uses the composite method of depreciation and has a composite rate of 25%. During 20x1, it sold assets with an original cost of P100,000 (residual value of P20,000) for P80,000 and acquired P60,000 worth of new assets (residual value of P10,000). The original group of assets had the following characteristics: Total Cost Total Residual Value P250,000 30,000 The above original group includes the assets sold in 20x8 but not the assets purchased in 20x8. How much is the depreciation in 20x8?

7. Tonyo Company uses the composite method of depreciation and has a composite rate of 25%. During 20x1, it sold assets with an original cost of P100,000 (residual value of P20,000) for P80,000 and acquired P60,000 worth of new assets (residual value of P10,000). The original group of assets had the following characteristics: Total Cost Total Residual Value P250,000 30,000 The above original group includes the assets sold in 20x8 but not the assets purchased in 20x8. How much is the depreciation in 20x8?

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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Similar questions

For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL fa straight-line and DDB for double-declining-balance. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. Asset A B C D MO E Cost Residual Value $ 31,000 62,000 87,000 252,000 211,000 6,000 21,000 31,000 Service Life (Years) 5 8 10 8 Depreciation Method DDB SL SL DDB Depreciation (Year 2) $ 30,000 5,600 9,000 23,100
H1.
jaydeep
A company purchased equipment with a cost of $96,000. Residual value at the end of a six-year useful life is estimated to be $24,000. The company uses straight-line depreciation and sold the equipment at the end of the third year.Required:(a) Calculate accumulated depreciation by the end of the third year and then calculate the gain or loss assuming the equipment is (b) sold for $70,000, (c) sold for $50,000, or (d) retired. In addition, record the entry for the events in (b), (c), and (d). How would your answers change if the company had initially estimated the residual value to be $16,000 and the useful life to be five years?
On January 1, year 1 ABC. Ltd. had a piece of equipment with a cost of $ 150000 and accumulated depreciation of $ 60000. The company uses the straight line method. The equipment has a useful life of 10 years and a residual value of $ 30000. The equipment was sold on July 1, year 1 for $ 150000. Calculate the gain or loss on disposal. If the amount is a gain, enter the answer as a positive amount below (i.e. 20000). If the amount is a loss, enter the answer as negative amount below (i.e. -20000). Round your final answer to the nearest dollar.
On January 1, year 1 ABC. Ltd. had a piece of equipment with a cost of $ 150000 and accumulated depreciation of $ 60000. The company uses the straight line method. The equipment has a useful life of 10 years and a residual value of $ 30000. The equipment was sold on July 1, year 1 for $ 150000. Calculate the gain or loss on disposal. If the amount is a gain, enter the answer as a positive amount below (i.e. 20000). If the amount is a loss, enter the answer as negative amount below (i.e. -20000). Round your final answer to the nearest dollar.
This is the consolidated journal entries. How do we come to the accumulated depreciation of 25,000 ?
On January 1, year 1 ABC. Ltd. had a piece of equipment with a cost of $ 150000 and accumulated depreciation of $ 60000. The company uses the straight line method. The equipment has a useful life of 10 years and a residual value of $ 30000. The equipment was sold on July 1, year 1 for $ 150000. Calculate the gain or loss on disposal. If the amount is a gain, enter the answer as a positive amount below (i.e. 20000). If the amount is a loss, enter the answer as negative amount below (i.e. -20000). Round your final answer to the nearest dollar.
Roma Inc purchased an asset worth $500,000. The useful life of the assetwill be 8 years and it was estimated by the company that its residual value will be $20,000. Calculate: a. Amount of depreciation under straight line method. b. Rate of depreciation under straight line method.