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Determine the 1. Depreciation of land improvements 2. Depreciation of building 3. Depreciation of machinery and equipment 4. Depreciation of automobiles

Determine the 1. Depreciation of land improvements 2. Depreciation of building 3. Depreciation of machinery and equipment 4. Depreciation of automobiles

FINANCIAL ACCOUNTING
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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Problem 27-26 (AICPA Adapted) the following property, plant and property and accumulated At the beginning of current year, Vicious Company reported depreciation: Accumulated Cost depreciation Land Land improvements Building Machinery and equipment 350,000 180,000 4,500,000 1,160,000 1,800,000 45,000 1,050,000 405,000 1,344,000 Automobiles Land improvements – Straight line, 15 years. Building – 150% declining balance, 20 years. Machinery and equipment – Straight line, ten years. Automobiles - 150% declining balance, three years. On January 1, 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 incurred. On June 30, a machine purchased for P60,000 two years ago was sold for P36,000. On December 31, the entity purchased a new automobile for P460,000 cash and trade-in of an automobile purchased for P540,000 three years ago. The new automobile has a cash price of P570,000. Required: Determine the following for the current year: 1. Depreciation of land improvements 2. Depreciation of building 3. Depreciation of machinery and equipment 4. Depreciation of automobiles
Transcribed Image Text:Problem 27-26 (AICPA Adapted) the following property, plant and property and accumulated At the beginning of current year, Vicious Company reported depreciation: Accumulated Cost depreciation Land Land improvements Building Machinery and equipment 350,000 180,000 4,500,000 1,160,000 1,800,000 45,000 1,050,000 405,000 1,344,000 Automobiles Land improvements – Straight line, 15 years. Building – 150% declining balance, 20 years. Machinery and equipment – Straight line, ten years. Automobiles - 150% declining balance, three years. On January 1, 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 incurred. On June 30, a machine purchased for P60,000 two years ago was sold for P36,000. On December 31, the entity purchased a new automobile for P460,000 cash and trade-in of an automobile purchased for P540,000 three years ago. The new automobile has a cash price of P570,000. Required: Determine the following for the current year: 1. Depreciation of land improvements 2. Depreciation of building 3. Depreciation of machinery and equipment 4. Depreciation of automobiles
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