How much is the revaluation surplus for the period ended December 31, 2022?
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19
An asset was acquired on January 1, 2020 for P800,000 and is expected to have a 5-year useful life. The straight-line method was used. On January 1, 2022, the asset was deemed to have a sound value of P720,000.
How much is the revaluation surplus for the period ended December 31, 2022?
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- MC19 The Diane Company has a single investment property acquired on July 1, 2019 for P11,400,000. The property has an estimated useful life of 40 years and an estimated residual value of P600,000. The company's accounting period ends on December 31 and uses the straight-line method of depreciation, computed to the nearest month. The fair values of the property at the end of each year follows: 2019 - P11,700,000 2020 - P11,960,000 2021 - P12,000,000 2022 - P11,700,000 Using the cost model, what is the amount reported in the 2022 profit or loss? P135,000 P270,000 P300,000 P(300,000) a. b. с. d. MC20 Use data of MC19. Under the fair value model, what is the amount reported in the 2022 profit or loss? P135,000 P270,000 P300,000 P(300,000) a. b. с. d.Interest During Construction Alta Company is constructing a production complex that qualifies for interest capitalization. The following information is available: Capitalization period: January 1, 2019, to June 30, 2020 Expenditures on project: 2019: January 1 May 1 $420,000 381,000 October 1 552,000 2020: March 1 June 30 Amounts borrowed and outstanding: 1,428,000 624,000 $1.6 million borrowed at 12%, specifically for the project $4 million borrowed on July 1, 2018, at 14% $18 million borrowed on January 1, 2017, at 8% Required: Note: Round all final numeric answers to two decimal places. 1. Compute the amount of interest costs capitalized each year. Capitalized interest, 2019 $ 933,000 X Capitalized interest, 2020 $ 2,052,000 X 2. If it is assumed that the production complex has an animated life of years and a residual value of $0, compute the straight-line depreciation in 2020. Alpha-numeric input field 115,825 X $ 3. Since GAAP requires accrual accounting, if a company capitalizes…On July 1, 2020, FDN Company purchased an equipment for P47,100,000. After 5 years of its estimated useful life, it can be sold for P100,000. How much is the carrying amount of the equipment as of December 31, 2021?
- 8. On January 1, 2019, Sapphire Manufacturing Company purchased a machine for $40,000,000. The company expects to use the machine for 24,000 hours over the next six years. The estimated residual value of the machine at the end of the sixth year is $40,000. The schedule of usage of the machine is below. Year Usage 1 4,500 2 6,000 3 5,200 4 4,300 5 2,000 6 2,000 Prepare the depreciation schedule using the units-of-production method of depreciation.Q 9.51: Hamill Company purchased equipment on January 1, 2020, for $70,000. The equipment was expected to be used for four years and 12,000 hours (4,000 hours in 2020, 3,000 hours in 2021, and 2,500 hours per year for each of the last two years). Hamill hopes to sell the asset for $5,000 at the end of its useful life. Using the double-declining-balance method, what amount of depreciation expense should Hamill record for the year ended December 31, 2020? $17,500 $35,000 $32,500 $16,250 Question O Confidence SUBMIT O Mark for Review F10 F11 F4 F5 F6 F7 F8 F9 F3 H4 20 %23 6. 8.In 2018 an asset was purchased for $2,000,000. The asset qualified for Initial Allowance. The Initial Allowance (I.A) Rate was 20%. Annual Allowance (A.A) Rate was 10%. The asset was sold in 2020 for $1,000,000. Capital allowance is on the reducing balance basis. The balancing adjustment is: a.A Balancing Charge of $260,000 b.A Balancing Allowance of $134,000 c. ABalancing Allowance of $260,000 d. A Balancing charge of $200,000
- 8Manatee Corporation purchased a special conveyor system on December 31, 2025. The purchase agreement stipulated that Manatee should pay $50,000 at the time of purchase and $15,000 at the end of each of the next 5 years. The conveyor system should be recorded on December 31, 2025, at what amount, assuming an appropriate interest rate of 8%?On September 30, 2020, Zee Company paid P240,000 for equipment that will be used for the next four years. What is the equipment's carrying value on December 31, 2023? O P240,000 O P225,000 O P165,000 O P105,000
- 5N1. Account1. Pharoah purchased a patent from Vania Co. for $2,700,000 on January 1, 2018. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2028. During 2020, Pharoah determined that the economic benefits of the patent would not last longer than 7 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020? The amount to be reported 2$ 2. Pharoah bought a franchise from Alexander Co. on January 1, 2019, for $979,000. The carrying amount of the franchise on Alexander's books on January 1, 2019, was $635,000. The franchise agreement had an estimated useful life of 20 years. Because Pharoah must enter a competitive bidding at the end of 2028, it is unlikely that the franchise will be retained beyond 2028. What amount should be amortized for the year ended December 31, 2020? The amount to be amortized 3. On January 1, 2020, Pharoah incurred organization…