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Problem 27-16 (AICPA Adapted) Ambitious Company showed the following schedule of depreciable assets on January 1, 2020. Acquisition date Accumulated depreciation Residual Asset Cost 4,000,000 2,000,000 2,800,000 2,560,000 1,440,000 1,344,000 2018 2017 2017 400,000 200,000 560,000 The useful life of each asset is 5 years. The entity takes a full depreciation in the year of acquisition and no depreciation in the year of disposition. Asset C was sold for P1,700,000 on June 30, 2020. Asset A is depreciated under the double declining method. 1. What is the depreciation of Asset A foř 2020? 1,600,000 b. a. 1,440,000 416,000 576,000 с. d. 2. What is the depreciation of Asset B for 2020 assuming same method in prior years? a. 240,000 b. 480,000 c. 360,000 d. 400,000 3. What is the gain on sale of Asset C? a. 244,000 b. 464,000 с. 356,000 d. 804,000 ABC

Problem 27-16 (AICPA Adapted) Ambitious Company showed the following schedule of depreciable assets on January 1, 2020. Acquisition date Accumulated depreciation Residual Asset Cost 4,000,000 2,000,000 2,800,000 2,560,000 1,440,000 1,344,000 2018 2017 2017 400,000 200,000 560,000 The useful life of each asset is 5 years. The entity takes a full depreciation in the year of acquisition and no depreciation in the year of disposition. Asset C was sold for P1,700,000 on June 30, 2020. Asset A is depreciated under the double declining method. 1. What is the depreciation of Asset A foř 2020? 1,600,000 b. a. 1,440,000 416,000 576,000 с. d. 2. What is the depreciation of Asset B for 2020 assuming same method in prior years? a. 240,000 b. 480,000 c. 360,000 d. 400,000 3. What is the gain on sale of Asset C? a. 244,000 b. 464,000 с. 356,000 d. 804,000 ABC

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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Ambitious Company showed the following schedule of Problem 27-16 (AICPA Adapted) depreciable assets on January 1, 2020. Acquisition date Accumulated depreciation Residual Asset Cost A B C 4,000,000 2,000,000 2,800,000 2,560,000 1,440,000 1,344,000 2018 2017 2017 400,000 200,000 560,000 The useful life of each asset is 5 years. The entity takes a fll depreciation in the year of acquisition and no depreciation in the year of disposition. Asset C was sold for P1,700,000 on June 30, 2020. Asset A is depreciated under the double declining method. 1. What is the depreciation of Asset A for 2020? 1,600,000 b. a. 1,440,000 416,000 576,000 с. d. 2. What is the depreciation of Asset B for 2020 assuming same method in prior years? a. 240,000 b. 480,000 c. 360,000 d. 400,000 3. What is the gain on sale of Asset C? a. 244,000 b. 464,000 c. 356,000 d. 804,000
Transcribed Image Text:Ambitious Company showed the following schedule of Problem 27-16 (AICPA Adapted) depreciable assets on January 1, 2020. Acquisition date Accumulated depreciation Residual Asset Cost A B C 4,000,000 2,000,000 2,800,000 2,560,000 1,440,000 1,344,000 2018 2017 2017 400,000 200,000 560,000 The useful life of each asset is 5 years. The entity takes a fll depreciation in the year of acquisition and no depreciation in the year of disposition. Asset C was sold for P1,700,000 on June 30, 2020. Asset A is depreciated under the double declining method. 1. What is the depreciation of Asset A for 2020? 1,600,000 b. a. 1,440,000 416,000 576,000 с. d. 2. What is the depreciation of Asset B for 2020 assuming same method in prior years? a. 240,000 b. 480,000 c. 360,000 d. 400,000 3. What is the gain on sale of Asset C? a. 244,000 b. 464,000 c. 356,000 d. 804,000
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