On July 18, 2018 , the national government granted a parcel of land located in Baliuag , Bulacan to Charie On the date of grant , the land had a value of 2000.000 The grant required Charie to construct a cold storage building on the site Charie finished the construction which has an estimated useful life of 25 years , on January 9, 2019 Chare appropriately recorded the cost of building of 4, 000, 000 but failed to record depreciation in 2019 Unaware if the accounting procedures for government grants , the company did not reflect the grant on its books What is the carrying amount of PPE as of December 31,2019\
On July 18, 2018 , the national government granted a parcel of land located in Baliuag , Bulacan to Charie On the date of grant , the land had a value of 2000.000 The grant required Charie to construct a cold storage building on the site Charie finished the construction which has an estimated useful life of 25 years , on January 9, 2019 Chare appropriately recorded the cost of building of 4, 000, 000 but failed to record depreciation in 2019 Unaware if the accounting procedures for government grants , the company did not reflect the grant on its books What is the carrying amount of PPE as of December 31,2019\
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Topic Video
Question
On July 18, 2018 , the national government granted a parcel of land located in Baliuag , Bulacan to Charie On the date of grant , the land had a value of 2000.000 The grant required Charie to construct a cold storage building on the site Charie finished the construction which has an estimated useful life of 25 years , on January 9, 2019 Chare appropriately recorded the cost of building of 4, 000, 000 but failed to record depreciation in 2019 Unaware if the accounting procedures for government grants , the company did not reflect the grant on its books What is the carrying amount of PPE as of December 31,2019\%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education