At the year ended 31 December, 2020, information regarding property, plant and equipment of Camelia Supplies Bhd are as follows: Machinery with an estimated useful life of 20 years was acquired on 1 April 2020. The cost of the machinery was RM300,000. Depreciation of machinery is based on the straight line method. 1. A piece of freehold land was acquired on 1 July 2020. The acquisition price of the land was RM1,600,000. Revaluation model is adopted for land. The fair value of the land at the year end was RM1,800,000. 2. Required: Illustrate the accounting treatment for the above assets for the year ended 31 December, 2020 in accordance with the requirements of MFRS116 Property, Plant and Equipment.

At the year ended 31 December, 2020, information regarding property, plant and equipment of Camelia Supplies Bhd are as follows: Machinery with an estimated useful life of 20 years was acquired on 1 April 2020. The cost of the machinery was RM300,000. Depreciation of machinery is based on the straight line method. 1. A piece of freehold land was acquired on 1 July 2020. The acquisition price of the land was RM1,600,000. Revaluation model is adopted for land. The fair value of the land at the year end was RM1,800,000. 2. Required: Illustrate the accounting treatment for the above assets for the year ended 31 December, 2020 in accordance with the requirements of MFRS116 Property, Plant and Equipment.

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

Presented below is information related to equipment owned by Bramble Company at December 31, 2025. Cost Accumulated depreciation to date. Expected future net cash flows Fair value $10,260,000 (a) 1.140,000 7,980,000 5,472,000 Assume that Bramble will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2025. (If no entry is required, select "No entry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) ternunt Titles and Fynlanation Debit Credit SUPPORT
On December 31, 2020, RJ Co. had delivery equipment in the total cost of P1,000,000.00 and accumulated depreciation of P500,000.00. This is being depreciated using the straight line method and with an estimated useful life of 10 years. On December 31, 2021, a six year old delivery equipment with an original cost of P200,000.00 was traded in for a brand new delivery equipment in the amount of P400,000.00. This new equipment is also depreciated using the straight line method and has a useful life of 10 years. How much is the depreciation expense on 2022?
Client A acquired a property on 31 December 2012 for P250,000. The asset is expected to be used within 10 years and will be sold at 5% of the acquisition cost afterwards. Prepare the depreciation schedules using the three methods of computing annual depreciation (i.e., straight-line method, sum-of-the-year’s digit method, and double-declining balance method). The depreciation schedules must show the annual depreciation charges and book values. Compare the three methods in terms of the average book value of the asset in its mid-life (fifth year).
On January 1, 2019, Ciara Corporation acquired an equipment to be used in its manufacturing operations. The equipment has an estimated useful life of 10 years and an estimated residual value of P50,000. The depreciation applicable to this equipment was P240,000 for the year 2021 computed under the sum of years’ digits method. What was the acquisition cost of the equipment? 1,650,000 1,700,000 2,400,000 2,450,000
France company disclosed that the depreciation policy of on machinery is as follows: A full year depreciation is taken in the year of acquisition. No depreciation is taken in the year of disposition. The straight line method is used. On June 30, 2022, the entity sold for P 2,300,000 a machine acquired in on April 1, 2019 for P 4,200,000. The machinery has estimated useful life of five years and a residual value of P 600,000. The carrying amount of the machine on June 30, 2022 is _____________ 2. the journal entry on June 30, 2022 would be:
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Plant Asset Accumulated Depreciation $ 480,000 245,000 2,150,000 1,184,000 215,000 Land Land improvements Building Equipment Automobiles Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $325,000, which included a $6,800 charge for freight Installation costs of $40,000 were incurred in addition to the invoice cost. b. On March 31, 2024, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $32,000. The fair value of the building on the day of the donation was $21,000. c. On May 1, 2024, expenditures of $63,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated. d. On…
On March 31, 2021, Company A purchased a manufacturing facility along with vehicles and other equipment. The distribution of the total purchase price of $1,500,000 to the various types of assets, along with the estimated useful lives and residual values is as follows: The purchase on March 31, 2021 included equipment at the purchase cost of $150,000. The company sold equipment for $120,000 on June 29, 2022. Company A uses the following depreciation methods: straight-line depreciation method for buildings and equipment double-declining-balance method for vehicles Company A calculates partial-year depreciation based on the number of months an asset is in service. Company A Asset & Cost Land $150,000 Building $750,000 Equipment $360,000 Vehicles $240,000 Total $1,500,000 On June 29, 2022, equipment inculded in the March 31, 2021, purchase that cost $150,000 and was sold for $120,000. Company A uses the straight line depreciation method for buildings and equipment and the…
On January 1, 2019, Fur Company purchased a machinery at a cost of P goods 21,000,000 with an estimated useful life of 10 years and scrap value of P 1,000,000. The double declining balance method of depreciation is used by the entity. In January 2021, it is estimated that the useful life of the machinery from acquisition date should have been 7 years while the residual value should have been P 960,000. What is the depreciation expense for the year 2021? P 6,384,000 P 2,688,000 P 2,352,000 P 5,376,000
On May 22, 2020, Colossal Corporation purchased machinery for $80,000. The useful life of this machinery is estimated at 10 years, with a $10,000 residual value. (i). Assume that Colossal uses straight-line depreciation and the half-year convention. Depreciation expense on this machinery will be: Select one: O a. $4,000 in 2020 and $8,000 in 2021 O b. $3,500 in 2020 and $7,000 in 2021 O c. $8,000 in 2020 and $8,000 in 2021 d. $7,000 in 2020 and $7,000 in 2021
On August 31, 2019, CAMELLIA Company purchased a new machinery for ₱540,000. The machinery has an estimated useful life of 5 years and depreciation is computed using the SYD method. Estimated salvage value of the machine is ₱60,000. What is the total accumulated depreciation on December 31, 2020?
an entity acquired furniture and fittings on 1 July 2021 for $42 000. The estimated useful life of the furniture and fittings at acquisition date was 8 years and the residual value was $2000. The company sold all the furniture and fittings on 1 January 2027 for $18 000. The journal entry to reflect the sale is:
The company adopted the straight-line depreciation method. Record the 15% depreciation on the plant and equipment purchased On 1 December 2020 for R125 000.