Can you please show me the solution? Thank you so much in advance!For the year ended, December 31, 2019.-Depreciation for land improvements-Depreciation for building-Depreciation for machinery and equipment-Depreciation for automotive equipment SUMMER Company reported the following property, plant and equipment and accumulated depreciation onJanuary 1, 2019:AccumulatedResidualCostdepreciationValueLand420,000230,00046,0001,026,000Land improvementsBuildingMachinery and EquipmentAutomotive equipment5,400,000100,0001,250,000259,25030,0001,710,000412,50060,000Land improvements - straight line, 15 yearsBuilding - double declining balance, 20 yearsMachinery and equipment - sum of the years' digits, 15Automotive equipment - straight line, 6 yearsOn January 2, 2020, additional machinery and equipment were purchased at a total invoice cost ofP260,000, which included a P10,000 charge for freight. Installation cost of P40,000 was also incurred.On June 30, 2020, a machine purchased for P60,000 on April 1, 2013 was sold for P35,000.On December 31, 2020, the entity purchased a new automobile for P460,000 cash and trade-in of anautomobile purchased for P540,000 on July 1, 2018. The new automobile has a cash price of P570,000

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Can you please show me the solution? Thank you so much in advance! For the year ended, December 31, 2019. -Depreciation for land improvements -Depreciation for building -Depreciation for machinery and equipment -Depreciation for automotive equipment

Can you please show me the solution? Thank you so much in advance! For the year ended, December 31, 2019. -Depreciation for land improvements -Depreciation for building -Depreciation for machinery and equipment -Depreciation for automotive equipment

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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Question

Can you please show me the solution? Thank you so much in advance!

For the year ended, December 31, 2019.

-Depreciation for land improvements

-Depreciation for building

-Depreciation for machinery and equipment

-Depreciation for automotive equipment

SUMMER Company reported the following property, plant and equipment and accumulated depreciation on
January 1, 2019:
Accumulated
Residual
Cost
depreciation
Value
Land
420,000
230,000
46,000
1,026,000
Land improvements
Building
Machinery and Equipment
Automotive equipment
5,400,000
100,000
1,250,000
259,250
30,000
1,710,000
412,500
60,000
Land improvements - straight line, 15 years
Building - double declining balance, 20 years
Machinery and equipment - sum of the years' digits, 15
Automotive equipment - straight line, 6 years
On January 2, 2020, additional machinery and equipment were purchased at a total invoice cost of
P260,000, which included a P10,000 charge for freight. Installation cost of P40,000 was also incurred.
On June 30, 2020, a machine purchased for P60,000 on April 1, 2013 was sold for P35,000.
On December 31, 2020, the entity purchased a new automobile for P460,000 cash and trade-in of an
automobile purchased for P540,000 on July 1, 2018. The new automobile has a cash price of P570,000

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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