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

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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
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.
What A company buys a new machine on July 1, 2022, and it is put into use immediately. Purchase price with installation is €132,000. It is assumed that it will be used for 5 years and that the salvage value (salvage value) after 5 years will be €18,000. a) Calculate the annual depreciation based on 1)Straight-line depreciationi 2) double - declining b) will be the charged depreciation for the year 2022, incl. use for six months according to these depreciation methods. What will be the accumulated depreciation and book value at the end of 2023, incl. these two depreciation methods?
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
I want accurate answer
On August 1, 2019, Jefferson Consulting purchased new computers for $15,920. The computers are expected to last 3 years and will have an estimated residual value of $800. Jefferson Consulting has a December 31 year end. Required Prepare the table below showing the yearly depreciation, accumulated depreciation, and net book value of the equipment.
A company purchases an asset for P 10,000.00 and plans to keep it for 20 years. If the salvage value is zero at the end of 20 year, what is the depreciation in the third year? Use SYD method.
On January 3, 2023, Xenex Innovations purchased computer equipment for $132,000. The equipment will be used in research and development activities for five years or a total of 10,000 hours and then sold for about $18,000. Assume actual usage in hours of: 2023 2024 2025 2026 2027 1,500 1,810 2,700 4,010 3,000 Required: Calculate depreciation expense and book values for each year of the equipment’s life for each method of depreciation using the table provided below. Xenex’s year-end is December 31. (Do not round intermediate calculations.)
Kam Company purchased a machine on January 2, 2019, for $20,000. The machine had an expected life of 8 years and a residual value of $300. The double-declining-balance method of depreciation is used. Required: (If required, round to the nearest dollar.) Compute the depreciation expense for each year of the asset's life and book value at the end of each year. DepreciationExpense Bookvalue 2019 2020 2021 2022 2023 2024 2025 2026 Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the asset's life, compute the depreciation expense for each year of the asset's life. Compute the depreciation using the double-declining-balance through year four, then switch to the straight-line method.2019: $ 2020: $ 2021: $ 2022: $ 2023: $ 2024: $ 2025: $ 2026: $ Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line…
A Company purchased equipment on January 1, 2019 for AED 70,000. It is estimated that the equipment will have a AED 5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life. Required: Solve the following independent questions where you need to show all the required calculations: Part A Compute the amount of depreciation expense for the year ended December 31, 2020, using the straight-line method of depreciation. Part B:- If 16,000 units of product are produced in 2019 and 24,000 units are produced in 2020, what is the book value of the equipment at December 31, 2020? The company uses the units-of-activity depreciation method. I Part C If the company uses the double-declining-balance method of depreciation, what is the balance of the Accumulated Depreciation-Equipment account at December 31, 2020?
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