ABC Co. purchased machinery that was installed and ready for use on January 3, 2020, at a total cost of P69,000. Salvage value was estimated at P9,000. The machinery will be depreciated over five years using the double-declining balance method. For the year 2021, ABC should record depreciation expense on this machinery of O P18,000 O P14,400 O Answer not given O P27,600 O P16,560

ABC Co. purchased machinery that was installed and ready for use on January 3, 2020, at a total cost of P69,000. Salvage value was estimated at P9,000. The machinery will be depreciated over five years using the double-declining balance method. For the year 2021, ABC should record depreciation expense on this machinery of O P18,000 O P14,400 O Answer not given O P27,600 O P16,560

Name: ABC Co. purchased machinery that was installed and ready for use on J
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: ABC Co. purchased machinery that was installed and ready for use on January 3, 2020, at a total cost of P69,000. Salvage value was estimated at P9,000.The machinery will be depreciated over five years using the double-declining balance method. For t

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Carla Vista Corporation purchased a truck at the beginning of 2025 for $110100. The truck is estimated to have a salvage value of $4000 and a useful life of 118000 miles. It was driven 22000 miles in 2025 and 30000 miles in 2026. Depreciation expense for 2025 is (Round intermediate calculations to 3 decimal places, e.g. 0.245 and final answer to O decimal places, e.g. 1,525.) O $21273. O $26970. O $46748. O $19778.
On January 5, 2021, Lighter Company acquired a building. The building had an estimated useful life of 10- years and an estimated salvage value of P50,000. The depreciation applicable to this building was P240,000 for 2023 computed under the sum-of-the year’s digit method. How much is the carrying value of the building as of December 31, 2022?
Chandler Company purchased a factory machinery on May 1, 2030 for $133,500 with an estimated 5- year life. It is estimated that the machinery will have a $22,000 salvage value. What is the amount of depreciation expense at December 31, 2030 using the straight-line method of depreciation? O $26,700 O $20,733 O $22,300 O $14,867 O $17,800
On October 1, 2022, Sandhill Co. places a new asset into service. The cost of the asset is $103500 with an estimated 5-year life and $22500 salvage value at the end of its useful life. What is the depreciation expense for 2022 if Sandhill Co. uses the straight-line method of depreciation? O $4050. O $10350. O $20700. O $5175.
ss
Tinker Bell Company sold a delivery wing truck on March 1, 2022. Tinker had acquired the wing truck on January 1, 2019, for $ 52,000. At acquisition, Tinker had estimated that the truck would have a useful life of 6 years and a residual value of $4,000. On December 31, 2021, the truck had a book value of $ 28,000. Required: Prepare the journal entries to recognized the depreciation expense for 2022 prior to the sale and the sale of the truck assuming the truck sold at the following different prices (you will have 3 entries total): $32,000 26,000
On January 1, 2022, Betty DeRose, Inc. purchased equipment for $86,000. The equipment was assigned a useful life of 12 years and a salvage value of $5,300. On January 1, 2026, Betty DeRose decided the life of the equipment should be changed from 12 to 18 years with a salvage value of $3,800 at the end of the 18 years. Betty DeRose uses the straight-line depreciation method to calculate depreciation on its long-term assets. Calculate the amount of depreciation expense recorded on the equipment for 2026.
On September 19, 2020, Sunland Company purchased machinery for $478000. Salvage value was estimated to be $24000. The machinery will be depreciated over eight years using the sum-of-the-years'-digits method. If depreciation is computed on the basis of the nearest full month, Sunland should record depreciation expense for 2021 on this machinery of O $75667. O $102903. O $97736. O $97972.
Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an expected useful life of 8 years. Straight line depreciation method is in place for similar items. On January 1, 2024, the asset is appraised as having a sound value of P4,500,000. On January 1, 2027, the asset had a recoverable value of P1.375.000. How much is the loss on impairment should be recognized on January 1, 2027?
On January 5, 2021, Lighter Company acquired a building. The building had an estimated useful life of 10- years and an estimated salvage value of P50,000. The depreciation applicable to this building was P240,000 for 2023 computed under the sum-of-the year's digit method. How much is the carrying value of the building as of December 31, 2022??
Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,00O. The same had an expected useful life of 8 years. Straight line depreciation method is in place for similar items. On January 1, 2024, the asset is appraised as having a sound value of P4,500,000. On January 1, 2027, the asset had a recoverable value of P1,375,000. How much is the loss on impairment should be recognized on January 1, 2027?
BLACK JACK Company purchased an automotive equipment on June 30, 2018 for P3,000,000. Atthe date of acquisition, the equipment had a life of six years with no salvage value. Theequipment is being depreciated on a straight-line basis. On October 1, 2021, BLACK JACKdetermined that the equipment had a remaining useful life of five years. What is the depreciation expense for the year ended December 31, 2021?