depreciation expense
Q: The patent was acquired in January 1, 2019 and has a useful life of 10 years. The franchise was…
A: Legal cost to successfully defend the patent against infringement by another company is amortized…
Q: Prepare the entry to record depreciation for 2026.
A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…
Q: What amount should be recognized as pretax revaluation surplus on January 1, 2019?
A:
Q: Remington Construction Company uses the percentage-of-completion method. During 2020, the company…
A: Percentage-of-completion method:- Percentage-of-completion method is termed as the contract method,…
Q: The following data relate to store equipment of Blue Company: Dec. 31,2020 Store equipment…
A: Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of the…
Q: SHOW YOUR SOLUTION IN GOOD ACCOUNTING FORM. THANK YOU. What amount should be recorded as…
A: Depreciation is the allocation of cost of asset over the useful life of the asset. There are several…
Q: How much is the consolidated asset for 2022?
A: In a consolidated financial statement, the unrealized gains on intra-group transactions should be…
Q: t had an estimated u P60,000 in success g of 2019. the compa: Ee of its original paten
A: The carrying value computation as,
Q: Bonita Industries purchased a machine for $66800 on July 1, 2020. The company intends to depreciate…
A: Double-declining balance method (Accelerated method): In this method of depreciation, the…
Q: What is the impairment loss for 2021 and 2022? What is the depreciation for 2023?
A: Impairment loss is a situation when carrying value of the asset is more than the fair value of the…
Q: In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: "Since you have posted a question with multiple sub-parts, we will solve the subparts asked by you.…
Q: On January 1,2013, Edition Company purchased an equipment for P1,970,000. On this date, the…
A: Depreciation is an expense which usually charged on the fixed or non-current assets over the years…
Q: On July 1, 2022, WAVY Company has a building with a cost of P4,000,000 and accumulated depreciation…
A: Asset- held for sale means those noncurrent assets owned by the company which it is planning to sell…
Q: Problem 28-3 (IAA) (AAT) 6-88 moldo1T On January 1, 2020 Universal Company paid P5,400,000 for…
A: Asset is defined as any resource that attracts income to its lawful owner. Each asset has varied…
Q: Dawn Company purchased a machine on January 1, 2018 for P3,000,000. At the date of acquisition, the…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: 8. At the beginning of 2020, Howie Company acquired an intangible asset for P3,000,000. The…
A: Yearly depreciation expense on intangible asset = P3,000,00010 years = P300,000 Carrying Value as…
Q: What amount should be recorded as depreciation for 2021? a. 287200 b. 384000 c. 460000
A: Depreciation represents the reduction in the value of an asset over a useful life of the asset. It…
Q: How much is the total carrying amount of the property as of June 30, 2021? Show the solutions…
A: Depreciation Cost The purpose of using the depreciation method to know the actual cost of the assets…
Q: For the next 3 questions.. What amount should be reported as pretax revaluation surplus on…
A: solution : What amount should be reported as pretax revaluation surplus on December 31, 2019?…
Q: ROA (return over assets for year 2021 and 2020
A: Meaning of return over assets A percentage between net income and total assets Formula (Net income…
Q: Assets have been carried at cost since acquisi used. On January 1, 2015, the entity decided to reva…
A: Depreciation means a fall in value of assets due to wear and tear, eflux of time, and obsolecense…
Q: Black Widow Corporation engaged you for the first time to audit their financial statements as of and…
A: Intangible assets - Intangible assets are assets that are not tangible or physical in nature and are…
Q: On January 31, 2022. Parent Company purchased al the identifiable net assets of Sue Company by…
A: SOLUTION WORKING NOTE- CALCULATION OF COST OF INVESTMENT- CASH 1200000 SHARES ISSUED 3200000…
Q: In 2017, Sunflower Company acquired a silver mine in Eastern Mindanao. Because the mine is located…
A: Depreciation It the monetary value of an asset decreases over a period of time due to use, wear and…
Q: On Jan. 1, 2021, Mother, Inc., whose financial year end is every Dec. 31, purchased a unit of…
A: Solution: Annual depreciation using SLM = (Cost - Residual value) / useful life = (P10,000,000 -…
Q: On January 31, 2022, Parent Company purchased all the identifiable net assets of Sub Company by…
A: The cost of investment includes the cash transferred, Fair value of assets transferred, fair value…
Q: How do you prepare the depreciation for the year 2026?
A: Depreciation Expenses - Depreciation Expense are those expense that charged on fixed assets. It is…
Q: how much is the depreciation expense for 2024 using SYD depreciation method?
A: Depreciation means allocation of cost of asset over the useful life of the asset.
Q: TOTAL NON CURRENT ASSETS
A: Non current assets are assets, the benefits from which extend over a time period of more than one…
Q: On January 1, 2020, Miller Company purchased a machine for P2,750,000. The machine was depreciated…
A: Working: Total sum of 10 years = 1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9 + 10 = 55 years Sum of Remaining…
Q: 000. Jingle Corp makes several payments to Reindeer Corp during 2018. Jingle Corp ced the…
A:
![On January 1, 2020, G Corp. purchased a unit of equipment for P20,000,000. The
asset is estimated to have a useful life of 20 years with no residual value.
On December 31, 2021, G Corp. gathered information concluding that the asset's
sound value increased to P36,000,000. However, two years after, on December 31,
2023, the fair value of the equipment dropped to P20,000,000. The entity also revised
its remaining useful life to 10 years.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4ea0a062-25e1-4882-aef9-d0b551012b75%2F4d7df308-5b05-40a8-9495-4f5f722349d2%2Fnqpz635_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Petes Petroleum, Inc., an SEC registrant with a calendar year-end, is in the business of constructing and operating offs] lore oil platforms. Petes Petroleum is required legally to dismantle and remove the platforms at the end of their useful lives, which is estimated to be 10 years. On January 1, 2019, Pete constructed and began operating an offshore oil platform off the coast of Brazil. The total capitalized cost to construct the platform was 3,700,000. In addition, while the future cost of dismantling the oil platform is difficult to estimate, Pete believes there is a 40% chance that the future cost will be 1,425,000, a 40% chance it will be 1,650,000, and a 20% chance that it will cost 2,125,000. The appropriate discount rate is 12%, and Pete uses the straight-line method of depreciation. Required: 1. Prepare the journal entries that Pete should record in 2019 related to the oil platform. 2. Prepare an amortization schedule for the asset retirement obligation. 3. Next Level Prepare a table showing the effect of accounting for the asset retirement obligation on assets, liabilities, shareholders equity, and net income relative to accounting for the associated costs at the end of the assets service life when the expenditure is made.On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of zero. Bliss uses the straight -line method of depreciation. At the beginning of the sixth year, the assets book value is 200,000 and Bliss changes the estimate of the assets life to 25 years, so that 20 years now remain in the assets life. Explain how this change will be accounted for in Blisss financial statements, and compute the current and future annual depreciation expense.
- On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received $12,000,000 in net assets. In 2016, the market value of the goodwill obtained from Branta Corp. was valued at $4,000,000, but in 2017 it dropped to $2,000,000. Prepare the journal entry for the creation of goodwill and the entry to record any impairments to it in subsequent years.Comprehensive: Acquisition, Subsequent Expenditures, and Depreciation On January 2, 2019, Lapar Corporation purchased a machine for 50,000. Lapar paid shipping expenses of 500, as well as installation costs of 1,200. The company estimated that the machine would have a useful life of 10 years and a residual value of 3,000. On January 1, 2020, Lapar made additions costing 3,600 to the machine in order to comply with pollution-control ordinances. These additions neither prolonged the life of the machine nor increased the residual value. Required: 1. If Lapar records depreciation expense under the straight-line method, how much is the depreciation expense for 2020? 2. Assume Lapar determines the machine has three significant components as shown below. If Lapar uses IFRS, what is the amount of depreciation expense that would be recorded?Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.
- On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.On January 1, 2020, G Corp. purchased a unit of equipment for P20,000,000. The asset is estimated to have a useful life of 20 years with no residual value. On December 31, 2021, G Corp. gathered information concluding that the asset’s sound value increased to P36,000,000. However, two years after, on December 31, 2023, the fair value of the equipment dropped to P20,000,000. The entity also revised its remaining useful life to 10 years. - How much is the revaluation surplus to be recognized on December 31, 2021? - How much is the revaluation deficit/impairment loss to be recognized on the Income Statement as of December 31, 2023? - How much is the depreciation expense for December 31, 2024?On 30 June 2020, James Ltd acquired a machine for $200 500 cash, with an expected useful life of ten years and a zero residual value. The company has adopted fair value for the valuation of non-current assets. On 30 June 2021, the company hired an independent valuer who assessed the value of the machine to be $185 000 with a remaining useful life of 8 years and residual value of $5 000. On 30 June 2022, the fair value of the machine is $150 000 with a remaining useful life of 6 years and zero residual value. The company uses straight-line depreciation method for depreciating all its property, plant and equipment. Income tax rate is 30%. The financial year ends on 30 June. Required Prepare all the necessary journal entries related to the machine from 30 June 2020 to 30 June 2022.
- On January 1, 2021, Gaston Corp. purchased a building for Php 20,000,000. The building has a useful life of Php 20 years and no residual value. On December 31, 2025, the entity tested the asset for impairment. The fair value on such date is Php 12,000,000. On December 31, 2027, Gaston Company decided to use the revaluation model. The fair value of the assets on such date has risen to Php 18,000,000. Answer the following based in the information above 1.What is the carrying amount of the impaired asset on December 31, 2027? 2. What amount should be recognized as gain in reversal of impairment for 2027? 3. What amount should be recognized as revaluation surplus in 2027? 4. What amount should be recognized as impairment loss on 2025?On June 30, 2022, L Company classified a non-current asset as “Held for Sale.” On this date, before its reclassification, its carrying amount was P5,000,000 and its expected selling price was P4,500,000, with expected cost to sell of P300,000. By December 31, 2022, the asset had not yet been sold, but the management is still committed to a plan to sell it, and the sale is considered to be highly probable. The entity estimated that because of recent changes for the demand of the product that is produced by the asset and expected favorable price movement, the asset was now expected to be selling at P5,500,000 with related cost to sell unchanged. Depreciation from July 1 to December 31 would have been P500,000. What amount of gain shall be recognized at December 31, 2022 as a result of the increase in the fair value less cost to sell of the asset?On January 1, 2020, A Company decided to sell one of its machineries with a cost of P3,400,000 and accumulated depreciation of P650,000. Depreciation was P280,000 per annum. The company undertook all necessary actions to be able to classify the asset as held for sale. It is estimated that the machine can be sold for its fair value of P2,680,000, incurring P40,000 selling costs in the process. On March 31, 2020, the machine was not yet sold, and there was an increase in fair value to P2,810,000 and selling costs of P40,000. On June 30, 2020, A Company was able to sell the plant for P2,850,000 after incurring P30,000 in selling costs. Determine gain (loss) to be recognized on the sale of machinery on June 30, 2020. a. 50,000 b. 70,000 c. 180,000 d. 120,000
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)