Blue Co. purchased an equipment on March 1, 2015, made a 50% down payment, and the balance will be paid in five equal installments at March 1 of the next five years. The equipment has a useful life of 15 years, and it was expected to be sold for P35,000 once its useful life ends. On December 31, 2019, the accumulated depreciation on the equipment is P4,495,000. 1.) How much is the cost of the equipment? 2.) How much is depreciation per year? 3) On December 31 2019. how much is the carrving value of the equinment?

Blue Co. purchased an equipment on March 1, 2015, made a 50% down payment, and the balance will be paid in five equal installments at March 1 of the next five years. The equipment has a useful life of 15 years, and it was expected to be sold for P35,000 once its useful life ends. On December 31, 2019, the accumulated depreciation on the equipment is P4,495,000. 1.) How much is the cost of the equipment? 2.) How much is depreciation per year? 3) On December 31 2019. how much is the carrving value of the equinment?

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Blue Co. purchased an equipment on March 1, 2015, made a 50% down payment, and the balance will
be paid in five equal installments at March 1 of the next five years. The equipment has a useful life of 15
years, and it was expected to be sold for P35,000 once its useful life ends. On December 31, 2019, the
accumulated depreciation on the equipment is P4,495,000.
1.) How much is the cost of the equipment?
2.) How much is depreciation per year?
3.) On December 31, 2019, how much is the carrying value of the equipment?
4.) On December 31, 2019, how much is remaining accounts payable?

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