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
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Chapter1: Financial Statements And Business Decisions
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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
P250,000
30,000
Total Residual Value
The 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 15
Light Company bought a machine for P300,000 on January 1, 20x8. The machine's useful life is 10
years and it is estimated to have a zero residual value and is depreciated using the straight-line
method.
The revalued amount of the machine is as follows:
December 31
20x8
20x9
2x10
Fair values of the machine
P 360,000
335,000
320,000
The enacted tax rate was 30% for each year
8. The revaluation surplus in the equity section of Light Company's December 31, 20x8 statement
of financial position is
9. The amount of depreciation expense to be recognized in 20x9 is .
Transcribed Image Text: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 P250,000 30,000 Total Residual Value The 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 15 Light Company bought a machine for P300,000 on January 1, 20x8. The machine's useful life is 10 years and it is estimated to have a zero residual value and is depreciated using the straight-line method. The revalued amount of the machine is as follows: December 31 20x8 20x9 2x10 Fair values of the machine P 360,000 335,000 320,000 The enacted tax rate was 30% for each year 8. The revaluation surplus in the equity section of Light Company's December 31, 20x8 statement of financial position is 9. The amount of depreciation expense to be recognized in 20x9 is .
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