00 mery fe of y on Problem 27-13 (AICPA Adapted) Sahaya Company takes a full depreciation expense in the year of acquisition, and no depreciation expense in the year of disposition. An asset was acquired in 2017. Cost Residual value Accumulated depreciation - January 1, 2020 1,100,000 200,000 720,000 Estimated useful life 5 years Using the same method in 2017, 2018 and 2019, what depreciation should be recorded in 2020? a. 120,000 b. 180,000 c. 220,000 d. 240,000 Problem 27-14 (AICPA Adapted) Iceberg Company purchased equipment which was installed and put into service January 1, 2020 at a total cost of P1,280,000. Residual value was estimated at P80,000.sb-adar ted The equipment is being depreciated over eight years by the double declining balance method. What amount of depreciation should be recorded for 2021? a. 225,000 2000.913 b. 240,000 c. 300,000 sd S 0905 Tot 8 198sto contribuash ardei ted d. 320,000 Problem 27-15 (IAA) On January 1, 2020, Contour Company acquired an equipment to be used in operations. The equipment had a useful life of 8 years and residual value of P300,000. The depreciation applicable to the equipment was P900,000 for 2021 computed under the double declining balance method. What was the acquisition cost of the equipment? a. 3,600,000 b. 4,500,000 c. 4,800,000 d. 5,100,000 Problem 27-10. (AICPA Adapted) On January 1, 2020, Domino Company purchased a new machine for P4,000,000. The new machine has an estimated useful life of eight years and the residual value was estimated to be P400,000. Depreciation was computed on the sum of the years' digits method. What is the carrying amount of the machine on December 31, 2021? a. 2,100,000 b. 2,500,000 c. 1,150,000 000 d 000 091 d. 3,300,000 000 061 Problem 27-11 (AICPA Adapted) 27 1903 Marta On January 1, 2018, Mogul Company acquired equipment to be used in the manufacturing operations. The equipment has an estimated useful life of 10 years and an estimated residual value of P50,000. 000 112 d The depreciation applicable to this equipment was P240,000 for 2020 computed under the sum of years' digits method. What was the acquisition cost of the equipment? a. 1,650,000 gasind b. 1,700,000 c. 2,400,000 d. 2,450,000 Problem 27-12 (AICPA Adapted) On April 1, 2020, Kingdom Company purchased new machinery for P3,000,000. The machinery has an estimated useful life of five years and depreciation is computed by the sum of years' digits method. What is the accumulated depreciation of the machinery on March 31, 2022? a. 1,920,000 b. 1,800,000 c. 1,200,000 d. 1,000,000 SUD CRAE Sa 01 di с 2 t С
00 mery fe of y on Problem 27-13 (AICPA Adapted) Sahaya Company takes a full depreciation expense in the year of acquisition, and no depreciation expense in the year of disposition. An asset was acquired in 2017. Cost Residual value Accumulated depreciation - January 1, 2020 1,100,000 200,000 720,000 Estimated useful life 5 years Using the same method in 2017, 2018 and 2019, what depreciation should be recorded in 2020? a. 120,000 b. 180,000 c. 220,000 d. 240,000 Problem 27-14 (AICPA Adapted) Iceberg Company purchased equipment which was installed and put into service January 1, 2020 at a total cost of P1,280,000. Residual value was estimated at P80,000.sb-adar ted The equipment is being depreciated over eight years by the double declining balance method. What amount of depreciation should be recorded for 2021? a. 225,000 2000.913 b. 240,000 c. 300,000 sd S 0905 Tot 8 198sto contribuash ardei ted d. 320,000 Problem 27-15 (IAA) On January 1, 2020, Contour Company acquired an equipment to be used in operations. The equipment had a useful life of 8 years and residual value of P300,000. The depreciation applicable to the equipment was P900,000 for 2021 computed under the double declining balance method. What was the acquisition cost of the equipment? a. 3,600,000 b. 4,500,000 c. 4,800,000 d. 5,100,000 Problem 27-10. (AICPA Adapted) On January 1, 2020, Domino Company purchased a new machine for P4,000,000. The new machine has an estimated useful life of eight years and the residual value was estimated to be P400,000. Depreciation was computed on the sum of the years' digits method. What is the carrying amount of the machine on December 31, 2021? a. 2,100,000 b. 2,500,000 c. 1,150,000 000 d 000 091 d. 3,300,000 000 061 Problem 27-11 (AICPA Adapted) 27 1903 Marta On January 1, 2018, Mogul Company acquired equipment to be used in the manufacturing operations. The equipment has an estimated useful life of 10 years and an estimated residual value of P50,000. 000 112 d The depreciation applicable to this equipment was P240,000 for 2020 computed under the sum of years' digits method. What was the acquisition cost of the equipment? a. 1,650,000 gasind b. 1,700,000 c. 2,400,000 d. 2,450,000 Problem 27-12 (AICPA Adapted) On April 1, 2020, Kingdom Company purchased new machinery for P3,000,000. The machinery has an estimated useful life of five years and depreciation is computed by the sum of years' digits method. What is the accumulated depreciation of the machinery on March 31, 2022? a. 1,920,000 b. 1,800,000 c. 1,200,000 d. 1,000,000 SUD CRAE Sa 01 di с 2 t С
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Topic Video
Question
Transcribed Image Text:00
mery
fe of
y on
Problem 27-13 (AICPA Adapted)
Sahaya Company takes a full depreciation expense in the year
of acquisition, and no depreciation expense in the year of
disposition. An asset was acquired in 2017.
Cost
Residual value
Accumulated depreciation - January 1, 2020
1,100,000
200,000
720,000
Estimated useful life
5 years
Using the same method in 2017, 2018 and 2019, what
depreciation should be recorded in 2020?
a. 120,000
b. 180,000
c. 220,000
d. 240,000
Problem 27-14 (AICPA Adapted)
Iceberg Company purchased equipment which was installed
and put into service January 1, 2020 at a total cost of P1,280,000.
Residual value was estimated at P80,000.sb-adar ted
The equipment is being depreciated over eight years by the
double declining balance method.
What amount of depreciation should be recorded for 2021?
a. 225,000
2000.913
b. 240,000
c. 300,000
sd S
0905 Tot 8 198sto contribuash ardei ted
d. 320,000
Problem 27-15 (IAA)
On January 1, 2020, Contour Company acquired an
equipment to be used in operations. The equipment had a
useful life of 8 years and residual value of P300,000.
The depreciation applicable to the equipment was P900,000
for 2021 computed under the double declining balance
method.
What was the acquisition cost of the equipment?
a. 3,600,000
b. 4,500,000
c. 4,800,000
d. 5,100,000
Transcribed Image Text:Problem 27-10. (AICPA Adapted)
On January 1, 2020, Domino Company purchased a new machine
for P4,000,000. The new machine has an estimated useful life of
eight years and the residual value was estimated to be P400,000.
Depreciation was computed on the sum of the years' digits
method.
What is the carrying amount of the machine on December
31, 2021?
a. 2,100,000
b. 2,500,000
c. 1,150,000
000 d
000 091
d. 3,300,000
000 061
Problem 27-11 (AICPA Adapted)
27 1903
Marta
On January 1, 2018, Mogul Company acquired equipment to be
used in the manufacturing operations.
The equipment has an estimated useful life of 10 years and an
estimated residual value of P50,000.
000 112 d
The depreciation applicable to this equipment was P240,000
for 2020 computed under the sum of years' digits method.
What was the acquisition cost of the equipment?
a. 1,650,000
gasind
b. 1,700,000
c. 2,400,000
d. 2,450,000
Problem 27-12 (AICPA Adapted)
On April 1, 2020, Kingdom Company purchased new machinery
for P3,000,000. The machinery has an estimated useful life of
five years and depreciation is computed by the sum of years'
digits method.
What is the accumulated depreciation of the machinery on
March 31, 2022?
a. 1,920,000
b. 1,800,000
c. 1,200,000
d. 1,000,000
SUD CRAE
Sa
01
di
с
2
t
С
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