On 1st January 2021 a business purchased a laser printer costingK250, 000. It is estimated that the printer will have EconomicUseful life of Four (4) years after which it would it have novalue. It is the policy of the business that, in the year ofpurchase, full depreciation is charged irrespective of when theasset was bought. In the year of disposal, however, nodepreciation is charged.Required:Calculate the annual depreciation charges for inclusion inIncome Statement for 2021, 2022, 2023i. The straight-line basis.ii. The reducing balance method at 50% per annum.iii. Define Depreciation and Describe 3 (Three) causes ofDepreciation.

Part (i): Computation of annual depreciation for the years 2021, 2022, and 2023 by using the…

Answered: On 1st January 2021 a business…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

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Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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On July 1, 2020, E. Cristobal Corp. acquired a service vehicle or P200,000. It is to be depreciated on a straight line basis at 20% per year. The estimated salvage value is P40,000 at the end of 5 years. The corporation makes proportionate depreciation charges in the year of purchase. The P200,000 cost was correctly credited but posted as a debit to the repairs account. How will the profit for the year ended Dec. 31, 2020 be affected by the error? a. Understated by P184,000 b. Understated by P168,000 c. Overstated by P184,000 d. Overstated by P200,000 What is the best answer? Explain why each of the other choices is not the answer
Sawyer bought an office equipment for £14,000 on 1 July 2019.It is expected to have a useful life of 4 years. If depreciation is to be provided at 30% on the reducing-balance basis. What is the depreciation charge for the year second year? a.E1,260 b.£2940 c.E4,200 d.£2,310
On 1 July 2020 Tom bought a machine for P15, 500. He depreciates machinery at a rate of 20% per annum on the reducing balance basis. A full year’s depreciation is charged in the year an asset is purchased. His year end is 31 October. a. Calculate the depreciation charge on the machine for the year to 31 October 2022.
During the beginning of 2021, Jambilee Company purchases a new machine worth P8,000,000, The new machine has an estimated useful life of 8 years and the estimated residual value is P800,000. Q1. What will be the value of accumulated depreciation in the year of 2021? Q2. What will be the carrying amount of the machine on December 31, 2022?
A piece of newly purchased industrial equipment costs $1,080,000 and is classified as seven-year property under MACRS (MACRS Schedule). Calculate the annual depreciation allowances and end-of-the-year book values for this equipment. Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Leave no cells blank. Enter "0" when necessary. Please answer fast I give you upvote.
David Ltd commences operations on 1 July 2020 On the same date, it purchases a machine at a cost of $1000 000 The machine is expected to have a useful life of 4 years, with benefits being uniform throughout its life. It will have no residual value at the end of 4 years Hence, for accounting purposes the depreciation expense would be $250 000 per year For taxation purposes, the ATO allows the company to depreciate the asset over three years—that is, $200 000 per year The profit before tax of the company for each of the next four years (years ending 30 June) is $600 000, $700 000, $800 000 and $900 000 respectively The tax rate is 30 per cent. Required: 1. Calculate the taxable profit on 30 June 2021, 30 June 2022, 30 June 2023.2. Record the necessary journal entries.
Please help me find the amount on 2019 and 2020
Mercury Drug purchased a Laboratory equipment for P 100,000 and plans to keep itfor 15 years. If the salvage value is Php 15,000 at the end of 15th year, what is the depreciation inthe third year? Use Sum of the Years Method. (Show your solution by using the long method bytabulating)
J. Mwakisha, a contractor, started business on 1 January 2018. Purchases and disposals of machines over the subsequent three years were as follows: Machine date of purchase cost date of disposal MA 1 1 January 2018 5,000,000 MB 2 1 July 2019 2,500,000 1 June 2020 MC 3 1 October 2020 7,000,000 The machines are depreciated on straight line basis using a rate of 20 per cent per annum. Required: For the years 2018, 2019 and 2020, calculate the depreciation attributable to each year using prorata or time basis.
Suppose that a company purchases a computer to be used in the manufacturing department at the beginning of 2019. The price paid is 4.800 TL. The useful life of the computer is 4 years. Let's assume that the company employs accelerated method of depreciation in annual terms. What would be the journal entry regarding the depreciation at the end of 2019? What if the company switches to the straight-line method at the beginning of 2020? What would be the journal entry regarding the depreciation at the end of 2020 then?
PS Builders Co purchases a new excavator costing £48,000. Its expected useful life is ten years, at which point it is anticipated that the excavator will have a residual value of £9450. If the reducing-balance method of depreciation is used, applying an annual depreciation rate of 15%, what is the annual depreciation charge in Year 2? O A. £4,000 B. £6,120 O C. £4,400 O D. £5,610
On Jan. 1, 2021, Mother, Inc., whose financial year end is every Dec. 31, purchased a unit of equipment at a total cost of P10,000,000. The equipment is estimated to have a useful life of 5 years with a residual value equal to 10% of its cost. - How much is the depreciation expense for 2021 using the straight line depreciation method? - How much is the depreciation expense for 2024 using the SYD depreciation method? - How much is the depreciation expense for 2025 using the double declining balance depreciation method?

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