A partial statement of financial position of Ivanhoe Ltd. on December 31, 2022, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2022): Buildings Less: Accumulated depreciation Equipment Less: Accumulated depreciation $294,000 94,000 $125,000 45,000 $200,000 80,000 Ivanhoe uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment (remaining useful life of 8 years, no residual value). Ivanhoe applies IFRS and has decided to adopt the revaluation model for its building and equipment, effective December 31, 2022. On this date, an independent appraiser assessed the fair value of the building to be $146,000 and that of the equipment to be $100,000.

A partial statement of financial position of Ivanhoe Ltd. on December 31, 2022, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2022): Buildings Less: Accumulated depreciation Equipment Less: Accumulated depreciation $294,000 94,000 $125,000 45,000 $200,000 80,000 Ivanhoe uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment (remaining useful life of 8 years, no residual value). Ivanhoe applies IFRS and has decided to adopt the revaluation model for its building and equipment, effective December 31, 2022. On this date, an independent appraiser assessed the fair value of the building to be $146,000 and that of the equipment to be $100,000.

Name: b. Prepare the entries to record depreciation expense for the year en
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: b. Prepare the entries to record depreciation expense for the year ended December 31, 2022.(Credit account titles are automatically indented when the amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for the accoun

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: In the 30 June 2020 annual report of Laverton ltd, the following information was reported for…

A: Journal entry:The monetary transaction of the business is recorded in the books of accounts called…

Q: Calculate any cash receipts or payments related to the property, plant, and equipment accounts in…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization…

A: 1. Prepare a schedule analyzing the changes in each of the plant asset accounts during 2021.

Q: the property, plant, and Property, plant, and equipment: Land $ 780,000 (150,000) 147,400 ? $…

A: Depreciation is a type of expense that is related to the assets. depreciation is a charge against…

Q: A partial statement of financial position of Ivanhoe Ltd. on December 31, 2022, showed the following…

A: Revaluation is the process of adjusting the carrying value of business assets with respect to their…

Q: Lindy Weink, the new controller of Oriole Company, has reviewed the expected useful lives and…

A: Depreciation is the anticipated decrease in value of fixed assets well over course of a fiscal year.…

Q: Solich Sandwich Shop had the following long-term asset balances as of December 31, 2021:…

A: Building: Depreciation as per double-declining-balance method = SLM rate ×2 × Book value at the…

Q: Pell Corporation’s Property, Plant, and Equipment and Accumulated Depreciation accounts had the…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances…

A: Assets: Any things or property owned by business called Assets. Assets can be Tangible and…

Q: please answer in text form and in proper format answer with must explanation , calculation for each…

A: Step 1: The data of property, plant and equipment - the tangible assets including value of…

Q: Marigold Corporation purchased a truck at the beginning of 2023 for $47,800. The truck is estimated…

A: It is an annual deduction which can be claimed on depreciable asset while computing taxable income.…

Q: Information related to plant assets, natural resources, and intangibles at the end of 2022 for Novak…

A: Balance sheet is the financial statement prepared by the entity for the purpose of determining its…

Q: The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances…

A: CHANGES IN PLANT ASSETS Plant assets, like all assets, are reported on your balance sheet, where…

Q: The information that follows relates to equipment owned by Pearl Limited at December 31, 2023: Cost…

A: The carrying amount of an asset is its cost minus any accumulated depreciation. In this case, the…

Q: December 2022 Fraser Ltd's statement of financial positi motor vehicles at a cost price of $400 000…

A: Introduction:- An asset is impaired when its carrying amount exceeds its recoverable amount. The…

Q: Providence Corporation purchased machinery on March 24th, 2022. Assume this machinery was the…

A: ANSWER:-YEAR 2020YEAR 2021A.straight line (semi annually)300,000 - 60,000 / 10 years = 24,000 annual…

Q: Information related to plant assets, natural resources, and intangible assets at the end of 2022 for…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: The property, plant, and equipment section of the Jasper Company's December 31, 2023, balance sheet…

A: Depreciation Expense 2,250 Accumulated Depreciation - Machine 102 2,250 Cash…

Q: Information related to plant assets, natural resources, and intangible assets at the end of 2022 for…

A: Balance Is The One Of The Three Major Financial Statements. It Contains The Assets, Liabilities And…

Q: Victor Mineli, the new controller of Sheffield Corp., has reviewed the expected useful lives and…

A: The Depreciation expense is charged on fixed assets as a reduction in the value of the fixed assets…

Q: The information that follows relates to equipment owned by Buffalo Limited at December 31, 2023:…

A: Answer:- Depreciation is basically the recording of decline value of an asset due to wear and tear,…

Q: Hardev

A: The objective of the question is to determine the cash received from the sale of the building, the…

Q: On March 31, 2021, Company A purchased a manufacturing facility along with vehicles and other…

A: Part 1: Depreciation Expense for 2021Building:We already have the depreciation expense for the…

Q: Pharoah Company changed depreciation methods in 2025 from double-declining-balance to straight-line.…

A: The Depreciation is a non-cash expense that allows companies to make provisions for the replacement…

Q: 1. Calculate the accumulated depreciation on the equipment at December 31, 2023.

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Presented below is information related to equipment owned by Marigold Company at December 31, 2025.…

A: DateAccountDebitCreditDec 31Loss on Impairment$3,328,000 Accumulated depreciation - Equipment…

Q: The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances…

A: Depreciation refers to persistent and gradual decline in the fixed asset book value. There are…

Q: The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances…

A: Property, Plant, and Equipment (PP&E) are tangible assets held by a company for business…

Q: The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances…

A: Depreciation is important for financial reporting work because it spreads an asset's cost across its…

Q: First, calculate any gain or loss on the disposal of the equipment Market value of assets received…

A: The journal entries are prepared in the book by debiting one or more accounts and crediting one or…

Q: The T-accounts for Equipment and the related Accumulated Depreciation-Equipment for Sheffield…

A: Cash flow from the sale of Equipment is calculated by substructing the loss on sale from the Net…

Q: On March 31, 2024, the Herzog Company purchased a factory complete with vehicles and equipment. The…

A: Decrecrease in the value of fixed assets ( except land) is called dpreciation. It causes due to…

Q: Presented below is information related to equipment owned by Bramble Company at December 31, 2025.…

A: Impairment refers to a significant, permanent reduction in the recoverable amount of an asset below…

Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

Topic Video

Question

b. Prepare the entries to record depreciation expense for the year ended December 31, 2022.
(Credit account titles are automatically indented when the amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts.)
)
)
Account Titles and Explanation
(To record depreciation expense for Buildings)
(To record depreciation expense for Equipment)
Debit
Credit

A partial statement of financial position of Ivanhoe Ltd. on December 31, 2022, showed the following property, plant, and equipment
assets accounted for under the cost model (accumulated depreciation includes depreciation for 2022):
Buildings
$294,000
Less: Accumulated depreciation
94,000
Equipment
$125,000
Less: Accumulated depreciation 45,000
(a)
Ivanhoe uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment
(remaining useful life of 8 years, no residual value). Ivanhoe applies IFRS and has decided to adopt the revaluation model for its
building and equipment, effective December 31, 2022. On this date, an independent appraiser assessed the fair value of the building
to be $146,000 and that of the equipment to be $100,000.
(To eliminate the accumulated depreciation)
Prepare the necessary general journal entries, if any, to revalue the building and the equipment as at December 31, 2022, using
the asset adjustment method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If
no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
Account Titles and Explanation
(To adjust the Buildings
account to fair value)
$200,000
(To eliminate the accumulated
depreciation)
80,000
(To adjust the Equipment
account to fair value)
Debit
Credit
]][[[[

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define fair value of equipment

VIEW

Step 2: Excel snip is as follows-

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

why did you not answer b?

Solution

by Bartleby Expert

SEE SOLUTION

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

On March 31, 2024, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $900,000 to the various types of assets along with estimated useful lives and residual values are as follows: Asset Land Building Equipment Vehicles Total Cost $ 150,000 400,000 200,000 150,000 $ 900,000 Estimated Residual Value N/A none 12% of cost $ 15,000 Estimated Useful Life (in years) N/A 25 On June 29, 2025, equipment included in the March 31, 2024, purchase that cost $90,000 was sold for $70,000. Herzog uses the straight-line depreciation method for building and equipment and the double-declining-balance method for vehicles. Partial-year depreciation is calculated based on the number of months an asset is in service. Required 1 Required 2 Required 3 Building Equipment Vehicles Required: 1. Compute depreciation expense on the building, equipment, and vehicles for 2024. 2. Prepare the journal entries to record the depreciation on the…
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Plant Asset Accumulated Depreciation $ 480,000 245,000 2,150,000 1,184,000 215,000 Land Land improvements Building Equipment Automobiles Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $325,000, which included a $6,800 charge for freight Installation costs of $40,000 were incurred in addition to the invoice cost. b. On March 31, 2024, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $32,000. The fair value of the building on the day of the donation was $21,000. c. On May 1, 2024, expenditures of $63,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated. d. On…
On March 31, 2021, Company A purchased a manufacturing facility along with vehicles and other equipment. The distribution of the total purchase price of $1,500,000 to the various types of assets, along with the estimated useful lives and residual values is as follows: The purchase on March 31, 2021 included equipment at the purchase cost of $150,000. The company sold equipment for $120,000 on June 29, 2022. Company A uses the following depreciation methods: straight-line depreciation method for buildings and equipment double-declining-balance method for vehicles Company A calculates partial-year depreciation based on the number of months an asset is in service. Company A Asset & Cost Land $150,000 Building $750,000 Equipment $360,000 Vehicles $240,000 Total $1,500,000 On June 29, 2022, equipment inculded in the March 31, 2021, purchase that cost $150,000 and was sold for $120,000. Company A uses the straight line depreciation method for buildings and equipment and the…
At 30 June 2020, White Ltd reported the following cash-generating unit, with the carrying amount totaling $530,000: Land 200,000 Equipment 600,000 Accumulated (300,000) depreciation - Equipment Goodwill 30,000 All items of property, plant and equipment are measured using the cost model. At 30 June 2020, the recoverable amount of the cash-generating unit was $480,000. For the period ending 30 June 2021, the depreciation charge on the equipment was $38,000. If the equipment had not been impaired the charge would have been $41,000. At 30 June 2021, the recoverable amount of the unit was calculated to be $15,000 greater than the carrying amount of the assets of the unit. As a result, White Ltd recognized a reversal of the previous year's impairment loss. Required: Prepare the journal entries relating to impairment at 30 June 2020 and impairment reversal at 30 June 2021.
Presented below is information related to Wolfie Corp.’s equipment on 12/31/2022: Description Amount Capitalized cost $900,000 Accumulated depreciation to date 750,000 Estimated residual value 40,000 Expected future cash flows 125,000 Estimated Fair value 100,000 The amount of the impairment loss, if any, that Wolfie Corp. should record on 12/31/22 is: $45,000 $50,000 $10,000 $20,000 $25,000 There is no impairment.
Information related to plant assets, extractable natural resources, and intangibles at the end of 2020 for Whispering Energy is as follows: buildings £1,020,000, accumulated depreciation-buildings £650,000, goodwill £410,000, coal mine £499,000, and accumulated depletion-coal mine £108,000. Prepare a partial statement of financial position of Whispering Energy for these items. (List Property, plant and equipment in order of coal mine and buildings.) WHISPERING ENERGY Statement of Financial Position (partial) > >
Hardev l gadubhai
Pina Colada Corp's statement of financial position at the end of 2019 included the following items: $1,255,000 $1,095,800 31,800 1,211,000 1,200,000 199,000 321,000 188,000 (144,000 ) (11,600 ) 41,600 $2,693,800 Current assets Land Buildings Equipment Accumulated depreciation-buildings Accumulated depreciation-equipment Intangible assets-patents Total The following information is available for the 2020 fiscal year: 1. 2. 3. 4. 5. 6. 7. 8. 9. Current liabilities Bonds payable Common shares Retained earnings (a) Total $2,693,800 Net income was $399,000. Interest paid is classified as operating activities. Equipment (cost of $20,300 and accumulated depreciation of $8,200) was sold for $10,400. Depreciation expense was $4,010 on the building and $9,130 on equipment. Amortization expense on a patent was $3,040. Current assets other than cash increased by $30,000. Current liabilities increased by $20,000. An addition to a building was completed at a cost of $32,600. Pina Colada prepares…
The information that follows relates to equipment owned by Buffalo Limited at December 31, 2023: Cost Accumulated depreciation to date $4,320,000 480,000 Expected future net cash flows (undiscounted) 3,360,000 Expected future net cash flows (discounted, value in use) 3,048,000 Fair value 2,976,000 Costs to sell (costs of disposal) 24,000 Assume that Buffalo will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Buffalo uses the straight-line method of depreciation. Assume that Buffalo is a private company that follows ASPE. (a) (b) Prepare the journal entry to record depreciation expense for 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry.) Date Account Titles and Explanation December 31, 2024 Debit Cre
please need help with must must explanation , narrations , computation for each entry and for each calculation , parts answer in text form
At December 31, 2025, Blue Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets During 2026, the following selected cash transactions occurred. Apr. May June Date 1 Purchased land for $3,335,200. 1 Sold equipment that cost $909,600 when purchased on January 1, 2019. The equipment was sold for $257,720. 1 Sold land for $2,425,600. The land cost $1,516,000. July 1 Purchased equipment for $1,667,600. Dec. 31 Retired equipment that cost $1,061,200 when purchased on December 31, 2016. No salvage value was received. April 1 $26,520,000 11,934,000 60,640,000 7,580,000 May 1 Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2026 transactions.) Blue uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated…
vnt.ok