An asset, with a useful life of 10 years, wasacquired at the beginning of year 1 at a cost of $60 000. The asset is revalued at the beginning ofyear 4 in terms of the entitys revaluation policyto gross replacement cost of $ 80 000 at this date.Assume that depreciation calculated foraccounting purposes on the straight-line methodaccurately reflects economic obsolescence. What is the revaluation amount?
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- Assume the same information as in RE11-3, except that Albany Corporation purchased the asset on April 1, Year 1. Calculate the depreciation for Year 1 and Year 2 using the double-declining-balance method. Round to the nearest dollar.At the end of the expected useful life of a depreciable asset with an estimated 15% residual value, the accumulated depreciation would equal the original cost of the asset under which of the following depreciation methods?A bulding acquired at the beginring of the year at a cost of $2,200,000 has an estimated residual value of s400,000 and an estimated useful te of 20 years. Determine the following (a) The depreciable cost (b) The straight-line rate (e) The annual straight-line deprecation
- Consider a five-year MACRS asset purchasedat $80,000. (Note that a five-year MACRS propertyclass is depreciated over six years due to the half-yearconvention. The applicable salvage values would be$40,000 in year 3, $30,000 in year 5, and $10,000 inyear 6.) Compute the gain or loss amounts when theasset is disposed of in(a) Year 3.(b) Year 5.(c) Year 6if an entity employs the sum-of-the-years digits (Syd) method of depreciation for an asset with an estimated useful life of 4 years the percentage of the total depreciable cost that will be expensed in the third year is : a- 0.10 b- 0.25 c- 0.20 d- 0.70if a company chooses the revaluation model permitted in IAS 16 for measuring non-current assets, then which of the following statements is correct? OA. Annual revaluations must be performed on each class of assets B. It must be revalued at the depreciated replacement cost OC. If an item of plant is revalued, then all items within that class must also be revalued OD. None of the above
- mark Inc. purchased a machinery on January 1, 2020, at a cost of P1,250,000. It is being depreciated using the straight-line method over its projected useful life of 8 years. On December 31, 2021, the asset’s fair value was P1,125,000. Accordingly, an entry was made on that date to recognize the revaluation surplus. Revaluation is recorded maintaining the proportionate relationship between the asset account and accumulated depreciation. It is the company policy to transfer a portion of revaluation surplus to retained earnings every period. What is the amount of revaluation surplus reported in equity on December 31, 2022?Refer to Exhibit 12.4 in the text. What is the depreciation expense deduction in each of 4 years for a$10,000 asset classified under MACRS as 3-year property?A certain asset has an estimated life of 30 years. The denominator for sum-of-the-years'-digits depreciation would be: a. 465b. 930c. 870d. 435
- Beckman enterprises purchase a depreciable asset on Oct1, year1 at a cost of 132,000. the asset is expected to have a salvage value of 15,800 at the end of its five-year useful life. if the asset id depreciated on the double-declining- balance method, the assets book value on Dec 31, year 2 will be?Which of the following statements are TRUE? a. MACRS-GDS uses a half-year convention, whereas MACRS-ADS does not. b. The half-year convention has the effect of depreciating over n − 1 full years (2, 3, . . . , n), and two half-years (1 and n + 1). c. The investment’s property class establishes the number of years over which the cost basis is to be recovered (depreciated). d. In general, MACRS-GDS has a longer recovery period (depreciation period) than MACRS-ADS.Asset C3PO has a depreciable base of $17.60 million and a service life of 10 years. What would the accumulated depreciation be at the end of year five under the sum-of-the-years'-digits method? (Do not round intermediate calculations.)