Answered: On Jan. 1, 2021, Mother, Inc., whose… | bartleby

FINANCIAL ACCOUNTING

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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how much is the depreciation expense for 2025 using the double declining balance depreciation method?

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?

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where did you get $1150/12 for the depreciaition expense
The purpose of the depreciation adjustment is to: -spread the cost invested in an asset over its useful life. -show the current market value of the asset. -set up a reserve fund for purchasing a new asset. -expense the full amount of the asset in the year purchased.
Please not that the accumulated Depriciation for 2020 using both methods does not agree to my opening depreciation Opening depreciation according to TB = 3,451,709 Depreciation at 2020 RBal Meth = 1,770,854 Depreciation at 2020 UPro Meth=1,864,865 both = 3,635,719 There is a difference of 184,010
What amount of depreciation should GOLF recognize for the year 2022?
Which of the following is true? O The book value at the end of an asset's useful life will be the same under all the depreciation methods allowed under generally accepted accounting principles. The annual depreciation expense will usually differ under the various depreciation methods. The total depreciation in the accumulated depreciation account will be the same at the end of the asset's useful life under all the methods allowed under generally accepted accounting principles. O All are true.
The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods can make it difficult for a financial analyst to compare periodic performance from firm to firm. Suppose you were a financial analyst trying to compare the performance of two companies. Company A uses the double-declining- balance depreciation method. Company B uses the straight-line method. You have the following information taken from the 12/31/2021 year-end financial statements for Company B: Income Statement Depreciation expense $10,000 Balance Sheet Assets: Plant and equipment, at cost Less: Accumulated depreciation Net $ 200,000 (40,000) $ 160,000 You also determine that all of the assets constituting the plant and equipment of Company B were acquired at the same time, and that all of the $200,000 represents depreciable assets. Also, all of the depreciable assets have the same useful life and residual values are zero. Required: 1. In order to compare…
Please help calculate depreciation expense for 2020 and 2021 by using double declining balance.
What formula did you use to get the Depreciation, EBT, Taxes, and Net Income?
How do I figure out the depreciation amount for the sum of the years digit method
Please explain how you arrived at the accumulated depreciation figure at 5.2
What is the difference between the cost of a fixed asset and its accumulated depreciation called? Group of answer choices book value current value fixed value equity value
How does the tax depreciation methods generally permit a higher depreciation than the book depreciation methods?

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