Survive, Inc.'s property, plant and equipment at December 31, 2019:Original costYear PurchasedUseful lifeSalvage valueDepreciation method直真P400,000201615 yearsP25,000Straight-lineP400,000P175,0002014P255,000201575,000 hoursP15,000Activity201810 yearsP15,500SYD10 yearsP25,000Double-decliningbalanceNote: In the year an asset is purchased, Survive, Inc. does not record any depreciation expense on the asset.In the year an asset is retired or traded in, Survive, Inc. takes full year depreciation on the asset. The following transaction occurred during 2020:1. On May 5, Asset P was sold for P65,000 cash.2. Asset R was used for 10,500 hours during 2020. Accumulated usage as of December 31, 2019 is40,800 hours.3. On December 31, before computing depreciation expense on Asset T, the management of Survive,Inc. determined that the useful life remaining from January 1, 2020 is only 10 years.4. On December 31, it was discovered that a plant asset purchased in 2019 had been expensedcompletely in that year. This asset costs P110,000 and has useful life of 10 years and no salvagevalue. Management has decided to use the double-declining balance for this asset, which can bereferred to as "Asset I."QUESTIONS:Based on the above and the result of your audit, answer the following: (Disregard tax implications)1. How much is the gain or loss on sale of Asset P?2. How much is the depreciation of Asset T for 2020?3. How much is the total depreciation expense for 2020?4. How much is the adjusted cost of property, plant and equipment as of December 31, 2020?5. How much is the camying amount of property, plant and equipment as of December 31, 2020?

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Description: Survive, Inc.'s property, plant and equipment at December 31, 2019:Original costYear PurchasedUseful lifeSalvage valueDepreciation method直真P400,000201615 yearsP25,000Straight-lineP400,000P175,0002014P255,000201575,000 hoursP15,000Activity201810 year

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hours. ember 31, before computing depreciation expense on Asset T, the managem termined that the useful life remaining from January 1, 2020 is only 10 years cember 31, it was discovered that a plant asset purchased in 2019 had tely in that year. This asset costs P110,000 and has useful life of 10 years Mananement has deided to use the doubls-dedining halance for this

hours. ember 31, before computing depreciation expense on Asset T, the managem termined that the useful life remaining from January 1, 2020 is only 10 years cember 31, it was discovered that a plant asset purchased in 2019 had tely in that year. This asset costs P110,000 and has useful life of 10 years Mananement has deided to use the doubls-dedining halance for this

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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