Mae Company acquired an equipment for P4,200,000 in 2018. The policy is straight line depreciation, full depreciation in the year of acquisition and no depreciation in the year of disposal. The useful life is five years with residual value of P200,000. On July 1, 2021, the equipment was sold for P2,500,000. What is the gain on disposal in

Q: Provide the journal entries necessary to account for all the above transactions and events up to 1…

A: Journal entries is the recording of the business transactions in a manner which gives dual effect of…

Q: Depreciation and Rate of Return Burrell Company purchased a machine for $31,000 on January 2, 2019.…

A: The deprecation under straight line method is calculated as:= (Cost of the asset - Residual Method)…

Q: Kansas Enterprises purchased equipment for $79,500 on January 1, 2021. The equipment is expected to…

A: The depreciation expense under the straight-line method is computed by subtracting the residual…

Q: At the beginning of 2019, Robotics Inc. acquired a manufacturing facility for $13.0 million. $10.0…

A: Depreciation means reduction in value of fixed assets over the period of time. Under straight line…

Q: Harley Davis Inc. started its unicycle manufacturing business in 2019 and acquired $600,000 of…

A: Compute the total accumulated depreciation- Total Accumulated Depreciation = Depreciation for Year…

Q: uary 1, 2019, that originally cost $150,000 is being depreciated on a straight-line basis over an…

A: The Correct Answer is option d.($13,875) Depreciation charged under original life for 2019 and 2020…

Q: At the beginning of 2019, Robotics Inc. acquired a manufacturing facility for $13.3 million. $10.3…

A: Depreciation means reduction in value of fixed assets over the period of time. Under straight line…

Q: Presented below is information related to equipment owned by Coronado Company at December 31, 2020.…

A: Loss on impairment = carrying value - Recoverable amount Where, Recoverable amount = Lower of value…

Q: 1. Prepare the journal entry to record the sale. 2. Assuming that Howarth had instead used the…

A: The expense of an item is dispersed equally over its useful life by straight-line…

Q: On January 1,2013, Edition Company purchased an equipment for P1,970,000. On this date, the…

A: Depreciation is an expense which usually charged on the fixed or non-current assets over the years…

Q: Burrell Company purchased a machine for $10,000 on January 2, 2019. The machine has an estimated…

A: DEPRECIATION UNDER DOUBLE DECLINING METHOD Rate =100%5 =20% Double declining rate = 20×2=40%

Q: 120,000. The equipment produced 52,000 units in 2023. Required Determine the estimated residual…

A: Given:Equipment purchased                     $135000Estimated useful life is 4 years or 200,000…

Q: On October 1, 2021, the Allegheny Corporation purchased equipment for $123,000. The estimated…

A: Under unit of production method of depreciation, depreciation is calculated on the basis of the…

Q: Jim Fleur purchased equipment on April 1, 2020, for $90,000. The equipment is expected to have a…

A: Straight line method of depreciation is that method in which cost of the asset is depreciated over…

Q: Sheffield Corp., which has a calendar year accounting period, purchased a new machine for $90000 on…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: An asset was acquired on October 1, 2021, for $101,000 with an estimated five-year life and $21,000…

A: Lets understand the basics. In unit of production method, depreciation is calculated based on the…

Q: Oriole plc purchased a computer for £9.440 on January 1, 2021. Straight-line depreciation is used,…

A: Depreciation :— It is the allocation of depreciable cost of asset over the useful life of asset.…

Q: On October 1, 2021, the Allegheny Corporation purchased equipment for $123,000. The estimated…

A: Lets understand the basics. Depreciation is a reduction in value of asset due to wear and tear,…