On January 1, 2012, Pacific Airlines sold an airplane with an estimated useful life of 10 years. At the same time, Pacific Airlines leased the back the plane for 10 years. The sales price of the airplane was P5, 000,000, the carrying amount P4, 010,000, and the annual rental of P739, 750. Pacific Airlines intends to depreciate the asset using the sum-of-the years-digits depreciation method. Discuss on how the gain on the sale should be reported at the end of 2019 in the financial statements.

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: JME acquired a depreciable asset on January 1, 2014, for $60,000 cash. At that time JME estimated…

A: Calculate the depreciation expense for first two years.

Q: Vaughn Ltd. purchased a building on January 1, 2021 for $14,610,000. Vaughn accounted for this asset…

A: Jan 1, 21 Building    a/c                     Dr         1,46,10,000     >>>> To Bank…

Q: Rivera Company purchased a tooling machine on January 3, 2015 for €500,000. The machine was being…

A: The change in the estimates over which the depreciation is computed is called a change in accounting…

Q: Vaughn Manufacturing purchased a new machine on May 1, 2012 for $566400. At the time of acquisition,…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Shah Enterprises, acquired a new equipment on April 2014. The cost of the equipment was $160,000…

A: Under the half-year convention, the depreciation is charged for half-year in the year of purchase of…

Q: Calculate the amount of the loss

A: DETAILS GIVEN IN THE QUESTION, Date of purchase  = 01/02/2006 purchase value      = $359,000 useful…

Q: Awni Company purchased a new machine on May 1, 2010 for €44,000. At the time of acquisition, the…

A: Monthly Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

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: On March 1, 2023, Sunland Ltd. purchased a machine for $63,000 by paying $21,000 down and issuing a…

A: Fixed assets are those assets which are being held by business for longer period of time. These are…

Q: On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a…

A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…

Q: Z company acquire equipment in 2012 for $317 million. At the time of recogintion of the equipment as…

A: Introduction: Under the straight line method of depreciation, depreciation is charged on the asset…

Q: Mango Co. owns a machine that was bought on January 1, 2017, for P752,000. The machine was…

A: Depreciation Expenses:- These are those expenses that appear in the income statement of the company,…

Q: Culver Ltd. purchased a building on January 1, 2021 for $14,880,000. Culver accounted for this asset…

A: Journal entries are prepared before preparing any other ledger account, financial statement, etc.…

Q: Hardy Man, Inc., acquired a machine in 2021 for P 400,000 and erroneously charged the cost to an…

A: The straight line method of calculating depreciation is the most simplest way to determine…

Q: The La Salle Bus Company has decided to purchase a new bus for $85,000 with a trade-in of their old…

A: Straight-line depreciation is the method of depreciation where the amount of depreciation remains…

Q: TAKULAH Traders Ltd purchased a machine for $650 000 and there was an accumulated depreciation…

A: As per AASB 116, a revaluation gain on any asset should be recognized in other comprehensive income…

Q: Pharoah Company purchased equipment in January of 2016 for $407000. The equipment was being…

A: Depreciation expense is the non-cash expense charged on the non-current assets. It is reported on…

Q: Hardy Man, Inc., acquired a machine in 2021 for P 400,000 and erroneously charged the cost to an…

A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage ,…

Q: On January 1, 2020, Grand Manufacturing purchased a machine for $370,000 that it expected to have a…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Dewey Corporation purchased a machine for $340,000 on January 1, 2012. The machine had an…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: For the year 2020, how much should be recognized as depreciation expense?

A: Depreciation Expenses:- These are those expenses that appear in the income statement of the company,…

Q: On January 1, 2018, Questor Airlines purchased å Used all residual value of $5,600,000. The company…

A:

Q: quired a patent from Generics Research Corporation for $3 million. The legal life of the patent is…

A: Amortization costs are the costs of long-term assets (such as computers and automobiles) over the…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.