Joseph Company purchased equipment on March 31, 2025 for P800,000. The company spent P30,000 for its freight and P50,000 for taxes and other expenses incidental to acquisition. The equipment can be sold for P40,000 after 10 years. It is estimated to produce 336,000 units of product X. The equipment production of product X for the first 5 years follow: Year Units of product X 2025 2026 2027 2028 2029 36,000 34,500 32,500 31,000 28,500 Compute for the accumulated depreciation as of December 31, 2027 using Sum of the Year's Digit method. Round off your answer to the nearest peso. Write the absolute value. Answer should be numeric.

Joseph Company purchased equipment on March 31, 2025 for P800,000. The company spent P30,000 for its freight and P50,000 for taxes and other expenses incidental to acquisition. The equipment can be sold for P40,000 after 10 years. It is estimated to produce 336,000 units of product X. The equipment production of product X for the first 5 years follow: Year Units of product X 2025 2026 2027 2028 2029 36,000 34,500 32,500 31,000 28,500 Compute for the accumulated depreciation as of December 31, 2027 using Sum of the Year's Digit method. Round off your answer to the nearest peso. Write the absolute value. Answer should be numeric.

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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KE On January 2, 2023, Konan Corporation acquired equipment for $800,000. The estimated life of the equipment is 5 years or 90.000 hours. The estimated residual value is $30.000. What is the balance in Accumulated Depreciation on December 31, 2024, it Konan Corporation uses the double-declining-balance method of depreciation? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar) A $192.000 OB $308,000 OC. $512,000 OD. $770,000 COND
In August 2024, Carla Vista Helicopters Ltd. purchased a new helicopter for its logging and heavy lift operations at a cost of $1.05 million. Based on past experience, management has determined that the helicopter will have a useful life of 18,000 flying hours, at which time it will have an estimated residual value of $150,000. During 2024, the helicopter was used for 1,800 flying hours, and in 2025 it was used for 2,000 flying hours. Carla Vista Helicopters has a December 31 year end and uses the units-of-production method of depreciation for its helicopters. Determine the depreciation expense on this helicopter for 2025 and its carrying amount at December 31, 2025. Depreciation expense $ Carrying amount $ 2025
Joseph Company purchased equipment on Jan. 1, 2025 for P800,000. The company spent P30,000 for its freight and P50,000 for taxes and other expenses incidental to acquisition. The equipment can be sold for P40,000 after 10 years. It is estimated to produce 336,000 units of product X. The equipment production of product X for the first 5 years follow: Year Units of product X 2025 36,000 2026 34,500 2027 32,500 2028 31,000 2029 28,500 How much is the depreciation Expense for the year 2027 using straight-line method?
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Dettol Limited bought a machinery of Sh. 25 million The Machinery is expected to package 50 million 100 ml hand sanitizers during its life time and has a salvage value of Sh. 2.5 million. For the ten years, the schedule of actual production is as follows; Year 1 2 3 4 5 6 7 8 9 10 Total Units produced “million” 7.9 7.2 6.6 5.5 4.8 4.0 3.7 3.6 3.5 3.2 50 Required (i) Calculate the depreciation charge per 100 ml hand sanitizer. (ii) Prepare a depreciation schedule for this machinery using the units of production approach.