Q2(no pic): FDN Company acquires a building on April 1, 2021 at a cost of P24,500,000. The building has an estimated useful life of 40 years and anestimated salvage value of P500,000. How much is the depreciation expense for the year ended December 31, 2021? On January 1, 2021, FDN Company has a cash balance of P43,600. The following financial information are taken from its books on December31, 2021, end of the accounting period:Cash received from customersP 111,000Cash received from sale of equipment11,600Purchase of equipment for cash14,000Additional cash investment of owner22,000Cash paid for bank loan5,000Cash received for sale of long-term investments19,000Payment for operating expenses81,500Note issued for acquisition of company vehicle6,500How much was the net cash flow provided by (used in) investing activities? Enter as a negative amount if it's used in investing activities.« PreviousNext

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FDN Company acquires a building on April 1, 2021 at a cost of P24,500,000. The building has an estimated useful life of 40 years and an estimated salvage value of P500,000. How much is the depreciation expense for the year ended December 31, 2021?

FDN Company acquires a building on April 1, 2021 at a cost of P24,500,000. The building has an estimated useful life of 40 years and an estimated salvage value of P500,000. How much is the depreciation expense for the year ended December 31, 2021?

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

Q2(no pic): FDN Company acquires a building on April 1, 2021 at a cost of P24,500,000. The building has an estimated useful life of 40 years and an estimated salvage value of P500,000. How much is the depreciation expense for the year ended December 31, 2021?

On January 1, 2021, FDN Company has a cash balance of P43,600. The following financial information are taken from its books on December
31, 2021, end of the accounting period:
Cash received from customers
P 111,000
Cash received from sale of equipment
11,600
Purchase of equipment for cash
14,000
Additional cash investment of owner
22,000
Cash paid for bank loan
5,000
Cash received for sale of long-term investments
19,000
Payment for operating expenses
81,500
Note issued for acquisition of company vehicle
6,500
How much was the net cash flow provided by (used in) investing activities? Enter as a negative amount if it's used in investing activities.
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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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Q3: Global Manufacturing Company purchased new equipment on April 29, 2020, at a cost of $80000. Useful life of this equipment was estimated at 4 years, with an estimated residual value of $5000. For income tax purpose, this equipment is classified as “5-years property”.Instructions: Compute the annual depreciation expense for each year until this equipment becomes fully depreciated under each of depreciation method listed below. i) Straight-line, with depreciation for fractional years rounded to the nearest whole month. ii) 200%- declining-balance, with the half-year convention.
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H1. Account
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