On January 1, 2025, Pina Colada Corp. purchased equipment for $52560. The company is depreciating the equipment at the rate of $730 per month. The book value of the equipment at December 31, 2025 is: $52560. $8760. $0. $43800.
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- On January 1, 2019, Vaughn Inc. purchased equipment for $ 44900. The company is depreciating the equipment at the rate of $ 710 per month. At January 31, 2020, the balance in Accumulated Depreciation is O $9230. O $35670. O $710. O $8520.On march 10, 2023, Sweet Acacia limited sold equipment that it bought for 286800 on August 20, 2026. It was originally estimated that the equipment would have a useful life of 12 years and a residual value of 24000 at the end of that time and depreciation has been calculated on that basis. The company uses the straight line method of depreciation and prepares its financial statement under IFRS. Calculate the depreciation charges on this equipment for 2016 and 2023, and the total charge for the period from 2017 to 2022, inclusive under each of the following six assumptions for partial periods. Depreciation is calculated for the exact period of time during which the asset is owned. Depreciation is calculated for the full year on January 1 balance in the asset account. Depreciation is calculated for the full year on December 31 balance in the asset account Depreciation for a half year is charged on plant assets that are acquired or disposed of during the year. Depreciation is…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?
- FDN Trading's Office Equipment account has a balance of P564,000 and Accumulated Depreciation of $164,000 on January 1, 2022. On July 1, 2022, the firm bought additional equipment for $87,000. It is the policy of the firm to depreciate its fixed assets (plant, property, and equipment) at 10% per year with residual value of 10% of acquisition cost. How much is the Depreciation Expense to be reported for the year ended December 31, 2022? Note: Round off final answer to the nearest peso.Pharoah Company purchased equipment that cost $3180000 on January 1, 2020. The entire cost was recorded as an expense. The equipment had a 9-year life and a $127200 residual value. Pharoah uses the straight-line method to account for depreciation expense. The error was discovered on December 10, 2022. Pharoah is subject to a 30% tax rate. Pharoah’s net income for the year ended December 31, 2020, was understated by $3180000. $2840800. $2226000. $1988560.Skysong Corp. purchased machinery for $312,900 on May 1, 2025. It is estimated that it will have a useful life of 10 years, salvage value of $15,900, production of 237,600 units, and working hours of 25,000. During 2026, Skysong Corp. uses the machinery for 2,650 hours, and the machinery produces 27,000 units. From the information given, compute the depreciation charge for 2026 under each of the following methods. (Round intermediate calculations to 2 decimal places, e.g. 5.25 and final answers to O decimal places, e.g. 45,892.) (a) (b) (c) (d) Straight-line Units-of-output Working hours Sum-of-the-years'-digits (e) Declining-balance (use 20% as the annual rate) $ $ $ GA GA
- On March 10, 2027, Skysong Company sells equipment that it purchased for $203,520 on August 20, 2020. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $17,808 at the end of that time, and depreciation has been computed on that basis. The company uses the straight-line method of depreciation. (a) Compute the depreciation charge on this equipment for 2020, for 2027, and the total charge for the period from 2021 to 2026, inclusive, under each of the six following assumptions with respect to partial periods. (Round depreciation per day to 2 decimal places, e.g. 15.64 and final answers to O decimal places, e.g. 45,892.) 1. Depreciation is computed for the exact period of time during which the asset is owned. (Use 365 days for base and record depreciation through March 9, 2027.) 2. Depreciation is computed for the full year on the January 1 balance in the asset account. 3. 4. Depreciation for one-half year is charged on plant assets acquired…Berman Company sold equipment on July 31, 2022 for $60,000. The equipment had cost $125,000 and had $70,000 of accumulated depreciation as of January 1, 2022 Depreciation for the first 7 months of 2022 was $8,000. Instructions: Prepare ALL journal entries required to record the sale of the equipment.Equipment was purchased for $83700 on January 1, 2021. Freight charges amounted to $4000 and there was a cost of $12000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $16000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2022 if the straight-line method of depreciation is used? O $16740. $13540. $28140. $33480.
- On July 15, 2018, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $750,000and $325,000, respectively. The book value of the patent and equipment on the date of sale were $120,000 and$400,000 (cost of $550,000 less accumulated depreciation of $150,000), respectively. Prepare the journal entriesto record the sales of the patent and equipment.Carla Vista Company purchased equipment that cost $3315000 on January 1, 2020. The entire cost was recorded as an expense. The equipment had a 9-year life and a $132600 residual value. Carla Vista uses the straight-line method to account for depreciation expense. The error was discovered on December 10, 2022. Carla Vista is subject to a 40% tax rate.Carla Vista’s net income for the year ended December 31, 2020, was understated by $1776840. $2961400. $3315000. $1989000.On July 1, 2020, ABC Company sells equipment for $105,000. The equipment originally cost $300,000, had an estimated 5-year life and an expected residual value of $50,000. The accumulated depreciation account had a balance of $200,000 on January 1, 2020, using the straight-line method. The gain or loss on disposal is _________________. (Indicate whether gain or loss)