he S. Sirap Co. acquired
Q: Zamans Equipment Limited acquired as equipment at a cost of $65000 with the term FOB destination,…
A: The determination of the Cost of the equipment to be reported on the Balance sheet is shown…
Q: The accountant has started the PPE and Depreciation Schedule for the year ended September 30, 2004.…
A: The objective of the question is to understand the differences and similarities between IFRS and US…
Q: Cost of long-term asset = $50,000 Accumulated Depreciation = $25,000
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: During the current accounting period, Jack Ltd considered the recognition of the following costs as…
A: Research expenses means the expense incurred for finding some new technology and out come of which…
Q: The acquisition of a used machine with a purchase price of $43,163, requiring an overhaul costing…
A: Ans. All the acquisition costs that are incurred to bring the asset to it's usable condition are…
Q: Torikatsu Company purchased a machine for P 100,000; current accumulated depreciation totals P…
A: Sunk Costs are costs that are have already been incurred (i.e., Historical Cost). These costs does…
Q: Required information E8-3 (Algo) Computing and Recording Cost and Depreciation of Assets (Straight-…
A: The depreciation expense is charged on fixed assets as reduction in the value of the fixed assets…
Q: The acquisition of a used machine with a purchase price of $44,994, requiring an overhaul costing…
A: Debit to the asset account implies that the business possesses more (for example builds the…
Q: A Record costs of lump-sum purchase. Note: Enter debits before credits. Transaction 1 General…
A: A lump-sum purchase occurs when several assets are acquired for a single price. Each of the assets…
Q: A group of assets including land, a building, and equipment were purchased for $1,000,000. The…
A: The purchase price allocation for each asset can be calculated based on its relative fair market…
Q: Combo Co. computes depreciation on the straight-line method. Based on the information presented, the…
A: Composite Rate= Total Annual Depreciation for All AssetTotal Cost of All Asset Composite Life=…
Q: ilding, equipment and inventories on raw material. For proper accounting purposes, each asset was…
A: Inventory's percentage in total Assets acquired = Value of Inventory/ Value of Total Assets
Q: The acquisition of a new machine with a purchase price of $82,058, transportation costs of $7,947,…
A: The cost of the machine includes all the expenses which are incurred to make the asset ready to use.…
Q: A machine with a cost of $176,000 and accumulated depreciation of $108,000 is sold for $58,400 cash.…
A: Cash Flow From Operating Activities :— Operating activities are the principal revenue producing…
Q: The entry under the proportional method to record the revaluation includes a. debit to accumulated…
A: Depreciation is the gradual conversion of the cost of a fixed asset into expense. It does not mean…
Q: The following is a schedule of machinery owned by PERSEVERANCE Manufacturing Company.…
A: Given the following information:
Q: A machine with a cost of $170,000 and accumulated depreciation of $105,000 is sold for $56,000 cash.…
A: Cash Flow From Operating Activities :— Operating activities are the principal revenue producing…
Q: Select the most correct answer: A vehicle, which is classified as property plant and equipment…
A: Impairment of assets refers to a reduction in the value of an asset, typically a long-term asset,…
Q: An item of property, plant and equipment was acquired for $250,000 on 120-day terms. At the time of…
A: Organizations that run a business, incur some costs and expenses. Companies have to categorize this…
Q: For the properties listed below compute the depreciation taken during the useful life of the…
A: MARCS is the short form for the Modified Accelerated cost Recovery System. It provides various asset…
Q: ! Required information E8-3 (Algo) Computing and Recording Cost and Depreciation of Assets…
A: Working Note : Formula Straight Line Depreciation = (Cost of asset - Residual value) / Estimated…
Q: Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets…
A: ACCOUNTING EQUATIONAccounting Equation is a Financial Accounting Technique which represents the…
Q: for help with this question? I got an answer of 100,000 (Rounded Up) Please check. W Co.…
A: Step 1 Intangible assets are measured initially at cost and afterwards subsequently an entity…
Q: ! Required information E8-3 (Algo) Computing and Recording Cost and Depreciation of Assets…
A: The Cost of an Asset includes the purchase price of the asset and all incidental expenses incurred…
Q: year. • Purchased building to be held as investment property for P4,000,000. Direct costs incurred…
A: These type of expense charged to P&L.
Q: For each of the following assets, state both the MACRS-GDS property class, if applicable, and the…
A: MACRS: It is a current system of depreciation in the USA in which tangible property’s capitalized…
Q: The acquisition of a new machine with a purchase price of $96,072, transportation costs of $7,638,…
A: Machinery is a non-current fixed asset used by the company on its factory floor in the manufacturing…
Q: es Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash…
A: Depreciation is the decrement in the value of tangible assets by the wear and tear during the…
Q: How much should be recorded as the purchase price of the individual PPE items: For items 13 to 17,…
A: Property, plant and equipment are those non current assets that cannot be sold readily and it…
Q: Sabel Co. purchased assembly equipment for $608,000 on January 1, Year 1. The equipment is expected…
A: Depreciation is the demunition [reduction] in the value of an asset on account of…
Q: Use the following information for the next two questions: In 20x1, BUCOLIC RURAL Co. acquired land…
A: Non- current assets (NCA) - Assets which are not expected to be sold within 1 year and whose…
Q: The Zylo Corp. made a basket purchase of Land, Building, and Equipment for $6250000. The…
A: The lump-sum amount is the total amount paid to acquire the different assets. The costs can be…
Q: Equipment was acquired at the beginning of the year at a cost of $625,000. The equipment was…
A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear.There are…
Q: A machine with a cost of $132,000 and accumulated depreciation of $86,000 is sold for $52,000 cash.…
A: Cash from operating activities:-The amount of money that is received by business owners from…
Q: Use the following information for the next two questions: In 20x1, BUCOLIC RURAL Co. acquired land…
A: A wasting resource or asset is something that has a finite lifespan and loses value irrevocably over…
Q: A machine with a cost of $141,000 and accumulated depreciation of $90,500 is sold for $61,000 cash.…
A: Cash flow statement provided information about the cash inflows and cash outflows of the company.…
Q: 032
A: Particular Amount Gross invoice $54,400 Sale tax $3,520 Cash discount ($1,088) Freight…
Q: Roller Inc. purchased a plant and the land on which the plant was located for a total of $300,000…
A: Fair Market Value: It refers to the price at which a product is expected to be sold in the open…
Q: Disposition of Assets: Journalizing Mitchell Parts Co. had the following plant asset transactions…
A: The Cost of an asset represents what is paid to purchase the assets. And the Accumulated…
Q: 17.ABC Company acquired a tract of land containing an extractable natural resource. ABC Co. is…
A: Solution.. Cost of acquisition = P8,000,000 Estimated restoration cost = P500,000 Development…
The S. Sirap Co. acquired Land, Building, and Equipment for a total price of $1840000. An independent appraisal of the assets at the time of purchase was as follows: Land at $500000, Building at $1200000 Equipment at $600000. Calculate in good form the cost assigned to each asset.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- Broad Ltd. decided on July 1, 2023 to dispose of an asset group consisting of land and a building. An active plan of disposal is being carried out, and sale is highly probable within the following year. The assets carrying values and estimated recoverable amounts at July 1.2023 are as follows: Land Building Cost $ 600 Carrying Value Estimated Recoverable Amount $ 600 $ 1,000 3,700 $4,300 2.500 2.400 $3.100 $3.400 On December 1, 2023, the asset group sold for $3,380, net of costs to sell. Required: Prepare journal entries that are appropriate to record the information above.A fixed asset with a cost of $31,304 and accumulated depreciation of $28,173.60 is sold for $5,321.68. What is the amount of the gain or loss on disposal of the fixed asset?The following information was provided relating to an asset: Acquisition date: 1 January 20X1 Acquisition cost: $76,000 Residual value: $6,000 Estimated useful life: 5 years Service hours: 35,000 Productive output in units: 7,000 Actual Data: ServiceHours UnitsProduced 20X1 4,700 400 20X2 6,900 1,100 20X3 7,200 1,600 20X4 7,600 1,800 20X5 8,600 2,100 35,000 7,000 Required:Prepare the journal entries to record depreciation expense for each year of the asset’s life, using the double declining balance method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
- NoneDanube, Toggle, and ConnectOn rely on various intangible assets to operate their businesses. These companies amortize the cost of these assets using the straight-line method over the following average estimated useful lives (in years), as reported in their annual reports. Type of Intangible Asset Developed Technology Danube 5.4 Trade Names 5.9 Toggle 5.6 10.1 ConnectOn 3.5 11.5 Customer Relationships 5.1 5.5 7.5 Required: 1. Based on these estimates, identify the company that uses the longest periods for amortizing most of its classes of intangible assets. Toggle Danube ConnectOn 2. Will these estimates increase or decrease that company's net income relative to its competitors? Increase DecreaseA) A cash generation unit holds the following assets: GH₵ Goodwill 60,000 Patent right120,000 Property, Plant and Equipment (PPE)180,000 360,000 An annual impairment review is required as the cash-generating unit contains goodwill The most recent review assesses its recoverable amount to be GH₵ 270,000 Required: Determine how the impairment loss will be allocated
- Diego Company paid $186,000 cash to acquire a group of items consisting of land appraised at $53,000 and a building appraised at $159,000. Allocate total cost to these two assets and prepare an entry to record the purchase. Complete this question by entering your answers General Total Cost Journal Allocate total cost to these two assets. Percent of Total Apportioned Cost Land Building TotalsDrabinski Ltd. decided on 1 July 20X3 to dispose of an asset group consisting of land, a building, and equipment. An active plan of disposal is being carried out, and sale is highly probable within the following year. The assets’ carrying values and estimated recoverable amounts at 1 July 20X3 are as follows: Cost Carrying Value Estimated Recoverable Amount Land $ 470,000 $ 470,000 $ 498,000 Building 3,400,000 1,640,000 970,000 Equipment 1,040,000 470,000 357,000 $ 4,910,000 $ 2,580,000 $ 1,825,000 On 31 December 20X3, the net recoverable amount of the group is reliably estimated to be $1,859,000. On 1 April 20X4, the asset group is sold for $1,919,000, net of costs to sell. Prepare journal entries that are appropriate to record the information above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Do not give answer in imageUse the following information for the next two questions: In 20x1, BUCOLIC RURAL Co. acquired land for a total cost of P40,000,000 to be used to quarry marble, limestone, and construction aggregates. Costs incurred to obtain legal right to explore the property amounted to P8,000,000. Expenditures incurred in the exploration for and evaluation of mineral resources before technical feasibility and commercial viability of extracting a mineral resource are demonstrable totaled P12,000,000. Intangible development costs of drilling, tunnels, shafts, and wells before the actual production totaled P20,000,000. BUCOLIC Co. estimates that total recoverable reserves are 100,000,000 units. Furthermore, BUCOLIC Co. expects to sell the land for P4,800,000 after resource is depleted. However, no buyer will pay this price unless the mine is drained, f i lled and leveled, a process that will cost P800,000. It is BUCOLIC's policy to capitalize all exploration costs. Actual units quarried in 20x1 through…
- Consider the information provided below and then complete the journals below that reflects the entry for the recognition of the construction costs of the property, plant and equipment and the expense as the asset is used. For this question assume the cost of constructing the plant is R900 000 (Select the correct value/entry for each block (letter) by selecting them from the dropdown lists provided.) BBA (PTY) Limited constructed the plant at a cost of R900 000 and the plant has a useful life of 20 years. The financial year of the entity ends on 31 December 2021. The construction of the plant was completed on 30 June 2021. It was available for use on the same day and brought into use on 30 September 2021. The residual value of the plant was estimated at R100 000. Complete the journal entries by filling in the correct information from the drop down menu: Debit (R) Credit (R) date: Factory plant Property, plant and equipment…Using the Cost Approach to property appraisal, determine the final appraised value of a building and the land the bulding is on based upon the following: - Land Value-$6 million; > Building Cost (psf) - $250; > Total area (psf)-$100,000: > Developer's profit - S800,000; > Economic obsolescence - S1.5 million; > Functional obsolescence - $3 million; > Locational obsolescence - $2 million; > Curable depreciation - Si million; > Effective age -20 years: > Economic Age- 50 years. Oa $10.340,000 Ob.S14,380,000 OC S13,980.000 Od. 510,380,000 Oe. $8,380,000If the book value of an asset is $12,500 and the accumulated depreciation is $3,500, the original cost of the asset is
