Information on Mix Co.'s equipment on June 30, 20x8 is shown below: Equipment (at cost) Accumulated depreciation P 500,000 150,000 350,000 The equipment consists of two machines, Machine A and Machine B. Machine A has a cost of P300,000 and a carrying amount of P180,000. Machine B has a cost of P200,000 and a carrying amount of P170,000. Both machines are measured using the cost model and depreciated on a straight line basis over a ten-year period. On December 31, 20x8, Mix Co. decided to change from the cost model to the revaluation model. Information on this date follows:

Information on Mix Co.'s equipment on June 30, 20x8 is shown below: Equipment (at cost) Accumulated depreciation P 500,000 150,000 350,000 The equipment consists of two machines, Machine A and Machine B. Machine A has a cost of P300,000 and a carrying amount of P180,000. Machine B has a cost of P200,000 and a carrying amount of P170,000. Both machines are measured using the cost model and depreciated on a straight line basis over a ten-year period. On December 31, 20x8, Mix Co. decided to change from the cost model to the revaluation model. Information on this date follows:

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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The net income reported on the income statement for the current year was $262,100. Depreciation recorded on equipment and a building amounted to $78,400 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $71,030 $75,290 Accounts receivable (net) 90,070 92,910 Inventories 177,580 160,070 Prepaid expenses 9,870 10,620 Accounts payable (merchandise creditors) 79,340 84,020 Salaries payable 11,440 10,470 a. Prepare the "Cash Flows from Operating Activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Which method of computing depreciation expense results in the amount of depreciation for each year depending on the units-of-production for that year? A. Straight line B. Double-declining balance C. Units-of-production D. Sum-of-the-years digits E. None of the above
7. EX.09.218 Equipment acquired on January 2, Year 1, at a cost of $525,000 has an estimated useful life of eight years and an estimated residual value of $45,000. Required: 1. What is the annual amount of depreciation for the first three years, assuming the straight-line method of depreciation is used? Depreciation Expense Year 1 Year 2 Year 3 2. What is the book value of the equipment on January 1, Year 4? 3. Assuming that the equipment is sold on January 2, Year 4, for $326,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. 4. Assuming that the equipment is sold on January 2, Year 4, for $394,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
Qq.60. Subject :- account
Topic major measures of Central value A machinery depreciated by 40% in the first year, 25 per cent in the second and 10% p.a. during the next three years. What is the average rate of depreciation during the whole period?
Equipment was acquired at the beginning of the year at a cost of $79,680. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,980. Required: a. What was the depreciation expense for the first year? b. Assuming the equipment was sold at the end of the second year for $60,242, determine the gain or loss on sale of the equipment. C. Journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.
21- The book value of the asset sold is calculated as a. Book Value = Cost – Sale Value b. Book Value = Cost – Depreciation for the year c. Book Value = Cost – Accumulated Depreciation d. Book Value = Cost – Salvage Value
Required: State the effect (higher, lower, no effect) of accelerated depreciation relative to straight-line depreciation on a. Depreciation expense in the first year. b. The asset's net book value after two years. Cash flows from operations (excluding income taxes). с.
4
For the composite method, the composite a. rate is the total cost divided by the total annual depreciation. b. rate is the total annual depreciation divided by the total depreciable cost. c. life is the total cost divided by the total annual depreciation. d. life is the total depreciable cost divided by the total annual depreciation.
How did you find the depreciation rate to be 16.67%
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