A. A vehicle which cost Rs. 1200,000 had an estimated useful life of 5 years and anestimated residual (salvage) value of Rs. 400,000. Straight-line depreciation was used.Give the entry (in general journal form) required in each of the following alternativeassumptions for Easy Corporation:i The vehiele was sold for cash of Rs. 800,000 after 2 years' use.ii. The vehicle was traded in after 3 years on another vehicle with a fair market valueof Rs. 1700,000. Trade in allowance was Rs. 850,000. (Record any implied gainor loss)ii.The vehicle was secrapped after 7 years' use. Since scrap dealers were unwilling topay anything for the vehicle, it was given to a scrap dealer for his services inremoving it.B. If there is a considerable proof that the current market value of a building is more thanhistorical cost and that the increasing trend of market value is carrying on, shoulddepreciation continue to be recorded? Elaborate with assumed values.

"Since you have posted two questions and not specified which should be solved so we are solving…

Answered: A. A vehicle which cost Rs. 1200,000…

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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Lowes Corporation sold its storage building for $86,000 cash. Lowes originally purchased the building for $200,000, and depreciation through the date of sale totaled $120,000. Required:Prepare the journal entry to record the sale of this building. (A separate calculation of any gain or loss is recommended.)
Lumax LLC purchased property, plant and equipment. The details of the PPE are given below. The appropriate amount of depreciation applicable for the current accounting period shall be: Classification of PPE OMR - cost Useful life Salvage value at the end of life Machinery 1,200,000 25 year 220,000 Land and Building - the part of land 3,500,000 40 years 400,000 value included in the total amount is estimated to be OMR 800,000. 400,000 600,000 hours 25,000 Generator engines - life if based on hours operated and during the year the company operated generators for 30,000 hours. 500,000 10 years 100,000 Furniture and fittings Chapter 5 - IAS Chapter 5 - IAS 16..pdf Chapter 4 - IAS 2 .pdf A EN
Lou Lou and Company purchased a piece of machinery 2 years ago for $50,000 and has depreciation to date of $15,000. The fair market value of the asset is $30,000, but the company believes it can achieve $34,000 in net future cash flows from the asset. Costs to dispose of the asset is $200. Assuming the asset is held for use, determine if the asset is impaired. If so, what is the amount of the write-off? The asset is impaired and Lou Lou should record a $1,000 loss on impairment. The asset is impaired and Lou Lou should record a $5,200 loss on impairment. The asset is NOT impaired. The asset is impaired and Lou Lou should record a $5,000 loss on impairment.
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Byrd Inc., a calendar year-end company, purchased a machine on 1/1/X1 with the following attributes: Cost $ 50,000 Salvage Value $ 2,000 Useful life 4 years Assuming that Byrd uses the straight-line depreciation method, answer each of the following questions: (do not include decimals or cents) Question #1: How much depreciation expense should be recorded in 20X2 (the second year of the asset's life)? Answer: $ Question #2: What should be the balance in the "Accumulated Depřeciation" account at the end of 20X2, after all year-end journal entries? Answer: $ Question #3: What should be the book value of the machine at the end of 20X2, after all year-end journal entries? Answer: $
Ronny’s Red Hat Company purchased machinery on August 3, Year 1 for $150,000. Ronny, the owner, estimated that the machinery would be sold for $30,000 in 10 years. If Ronny’s red Hat Company uses straight line depreciation, what is included in the entry to record the disposition of the asset on July 31, Year 3 if the machinery is sold for $120,000 cash? Question: Is there a loss or gain on disposition? How much?
An asset's book value is $36,000 on January 1, Year 6. The asset is being depreciated $500 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7 for $25,000, the company should record: Multiple Choice O O O Neither a gain or loss is recognized on this type of transaction. A gain on sale of $2,000. A loss on sale of $1,000. A gain on sale of $1,000. A loss on sale of $2,000.
Little Company purchased machinery for $1,060,000 on January 1, 20X1. Straight-line depreciation has been recorded based on a $40,000 salvage value and a 5-year useful life. The machinery was sold on May 1, 20X5 at a gain of $20,000. How much cash did Little receive from the sale of the machinery? Question 37 options: $176,000. $196,000. $236,000. $198,000.
Noah Corp., a calendar year-end company, purchased equipment on 1/1/X1 with the following attributes: Cost $ 25,000 Salvage Value $ 2,000 Useful life 4 years Assuming that Duncan uses the double-declining balance (DDB) depreciation method, answer the following question:Question: How much depreciation expense should be recorded in 20X4 (year four of the asset's life)? Answer- $ ___
Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items: Patent with 4 remaining years of legal life Goodwill Dynamo's financial condition just prior to the acquisition of these assets is shown in Required B. Required a. Compute the annual amortization expense for these items. b. Record the acquisition of the intangible assets and the related amortization expense for year 1 in a horizontal statements model. Complete this question by entering your answers in the tabs below. Required A Required B Record the acquisition of the intangible assets and the related amortization expense for year 1 in a horizontal statements model. (In the Cash Flo operating activities, FA for financing activities, or IA for investing activity. Leave the cell blank if there is no effect. Enter any decreases to accoun all cells will require entry.) Event Acquisition Amortization Cash + 86,400 + + + Balance Sheet Assets Patent + Goodwill $…
As a result of the transaction, what is the effect on the profit or loss? what is the cost of the new asset acquired? with computations
Following is the journal entry of transactions and financial events relating to depreciation. This journal entry has been passed on the basis of a double-entry system. XYZ sells the Car for $500,000. Its accumulated depreciation is $50,000. Its original cost is $600,000.

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