On 1 Jan 202O, Company A purchased a vehicle costing $25,000. A certainvehicle upgrade of $3,000 was added with the purchase. Also, a delivery feeof $500 was included in the expense. The company expects the vehicle to beoperational for 4 years at the end of which it can be sold for $5,000. Calculatedepreciation expense for the year ended 31 Dec 2020, 2021, 2022 and 2023using the Straight Line and Sum-of-Year's Digits method.Straight LineStTimeDepreciation (xx.xx} ($)Book Value (xx.xx} ($)Der31[ Select]Dec Sum-of-Year's DigitsXXx} ($)Depreciation {xx.xx} ($)Book Value (xx.Xx} ($)[ Select ][ Select[Select ]

The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…

Answered: On 1 Jan 2020, Company A purchased a…

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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On 1/1/18, Cumberland Corp. purchased a machine for $60,000. The machine cost Cumberland $2,800 for delivery. At the end of 10 years, Cumberland expects to sell the machine for $2,000. Compute depreciation expense for 2019 using the double declining balance method:
3.
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?
On January 1, 2024, Canseco Plumbing Fixtures purchased equipment for $38,000. Residual value at the end of an estimated 7 year service life is expected to be $10,000. The company expects the equipment to operate for 12,000 hours. Required: a. Calculate depreciation expense for 2024 and 2025 using sum-of-the-years'-digits, assuming the equipment was purchased on January 1, 2024. b. Calculate depreciation expense for 2024 and 2025 using sum-of-the-years'-digits, assuming the equipment was purchased on March 31, 2024. Complete this question by entering your answers in the tabs below. Required A Required B Calculate depreciation expense for 2024 and 2025 using sum-of-the-years'-digits, assuming the equipment was purchased on January 1, 2024. Sum-of-the-years' digits depreciation 2024 2025 Depreciable Base x Rate per Year = Depreciation Expense x x =
On January 2, 2022, BRACE company purchased a new machine on a deferred payment basis. A down payment of P 100,000 was made and a non interest bearing note was issued for 4 monthly instalments of P 250,000 each. The cash equivalent price of the machine was P 950,000. The entity incurred and paid installation costs amounting to P 30,000. Prepare the journal entry on January 2, 2022:
On May 1, 2020, Vaughn Manufacturing began construction of a building. Expenditures of $620400 were incurred monthly for 5 months beginning on May 1. The building was completed and ready for occupancy on September 1, 2020. For the purpose of determining the amount of interest cost to be capitalized, the weighted-average accumulated expenditures on the building during 2020 were O $2481600. O $3102000. O $517000. O $620400.
HK Ltd acquired machinery with a cash price of $100,000 under hire purchase terms. HK Ltd made a down payment of $20,000 on 1 September 2019 and settled the balance by 16 equal monthly installments of $5,500 each starting on 1. October 2019. HK Ltd closes its accounts on 31 March each year. The annual allowance rate for the machinery is 30%. Which statement concerning the depreciation allowances for the machinery is correct? OA. The machinery will be transferred to the 30% pool in 2020/21. OB. The annual allowance in the year of assessment 2019/20 is $20,460. OC. The annual allowance in the year of assessment 2020/21 is $5,700. OD. No initial allowance will be given in the year of assessment of 2020/21.
Sabana S.A acquired specialized equipment on June 28, 2020. Its cost of 17000000, its residual value is 1,800,000.00Its useful life is estimated to be 12 years. The company will depreciate applying the straight-line method from the month following the purchaseThe company carries out annual accounting closings every December 31, uses a business month for its calculations and applies IFRS in a comprehensive manner. On January 1, 2023, the company hires an expert who in his report indicates that the fair value of the equipment is now 30,000,000.00. Sabana S.A revalues its equipment using the Re method expressed and its policy is to transfer a portion of the revaluation surplus to the retained earnings account, as the asset is used.Based on the previous statement, the credit to the surplus item is for:
Colorado Pte Ltd commenced its first non-structural renovation works in accounting year 2017 at the cost of $120,000 and incurred a further $70,000 in accounting year 2018. In accounting year 2019, it upgraded its reception area and spent $250,000 on non-structural renovation costs. What is the amount deductible under Section 14Q in Year of Assessment 2020? Group of answer choices $100,000 $36,667 $116,667 $70,000
In March 2020, Jones Company purchased a Mercedes for use in its business at a cost of $73,000. Required: Assuming no bonus depreciation or Section 179 deduction, calculate the allowable tax depreciation on this asset for 2020, 2021, and 2022. Use Table 7-1 and Table 7-2. Use the below table for annual depreciation deduction for year 2020 to 2022: 2020...$ 10,100 2021... 16,100 2022... 9,700 2023 and subsequent years... 5,760 * Refer to attached images for Table 7-1 and Table 7-2
Cutter Enterprises purchased equipment for $51,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $6,300.Using the sum-of-the-years'-digits method, depreciation for 2022 and book value at December 31, 2022, would be: (Do not round depreciation rate per year) Multiple Choice $13,600 and $20,400 respectively. $11,920 and $24,180 respectively. $11,920 and $17,880 respectively. $13,600 and $14,100 respectively.

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