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Problem 27-26 (AICPA Adapted) At the beginning of current year, Vicious Company reported the following property, plant and property and accumulated depreciation: Accumulated depreciation Cost Land Land improvements Building Machinery and equipment Automobiles 350,000 180,000 4,500,000 1,160,000 1,800,000 45,000 1,050,000 405,000 1,344,000 Land improvements – Straight line, 15 years. Building – 150% declining balance, 20 years. Machinery and equipment – Straight line, ten years. Automobiles - 150% declining balance, three years. - On January 1, machinery and equipment were purchased at a total invoice cost of P260,000, which included a P10,000 charge for freight. Installation cost of P40,000 was incurred. On June 30, a machine purchased for P60,000 two years ago was sold for P36,000. On December 31, the entity purchased a new automobile for P460,000 cash and trade-in of an automobile purchased for P540,000 three years ago. The new automobile has a cash price of P570,000. Required: Determine the following for the current year: 1. Depreciation of land improvements 2. Depreciation of building 3. Depreciation of machinery and equipment 4. Depreciation of automobiles

Problem 27-26 (AICPA Adapted) At the beginning of current year, Vicious Company reported the following property, plant and property and accumulated depreciation: Accumulated depreciation Cost Land Land improvements Building Machinery and equipment Automobiles 350,000 180,000 4,500,000 1,160,000 1,800,000 45,000 1,050,000 405,000 1,344,000 Land improvements – Straight line, 15 years. Building – 150% declining balance, 20 years. Machinery and equipment – Straight line, ten years. Automobiles - 150% declining balance, three years. - On January 1, machinery and equipment were purchased at a total invoice cost of P260,000, which included a P10,000 charge for freight. Installation cost of P40,000 was incurred. On June 30, a machine purchased for P60,000 two years ago was sold for P36,000. On December 31, the entity purchased a new automobile for P460,000 cash and trade-in of an automobile purchased for P540,000 three years ago. The new automobile has a cash price of P570,000. Required: Determine the following for the current year: 1. Depreciation of land improvements 2. Depreciation of building 3. Depreciation of machinery and equipment 4. Depreciation of automobiles

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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Problem 27-26 (AICPA Adapted) At the beginning of current year, Vicious Company reported the following property, plant and property and accumulated depreciation: Accumulated Cost depreciation Land Land improvements Building Machinery and equipment Automobiles 350,000 180,000 4,500,000 1,160,000 1,800,000 45,000 1,050,000 405,000 1,344,000 Land improvements – Straight line, 15 years. Building – 150% declining balance, 20 years. Machinery and equipment – Straight line, ten years. Automobiles – 150% declining balance, three years. On January 1, machinery and equipment were purchased at a total invoice cost of P260,000, which included a P10,000 charge for freight. Installation cost of P40,000 was incurred. On June 30, a machine purchased for P60,000 two years ago was sold for P36,000. On December 31, the entity purchased a new automobile for P460,000 cash and trade-in of an automobile purchased for P540,000 three years ago. The new automobile has a cash price of P570,000. * Required: Determine the following for the current year: 1. Depreciation of land improvements 2. Depreciation of building 3. Depreciation of machinery and equipment 4. Depreciation of automobiles 799
Transcribed Image Text:Problem 27-26 (AICPA Adapted) At the beginning of current year, Vicious Company reported the following property, plant and property and accumulated depreciation: Accumulated Cost depreciation Land Land improvements Building Machinery and equipment Automobiles 350,000 180,000 4,500,000 1,160,000 1,800,000 45,000 1,050,000 405,000 1,344,000 Land improvements – Straight line, 15 years. Building – 150% declining balance, 20 years. Machinery and equipment – Straight line, ten years. Automobiles – 150% declining balance, three years. On January 1, machinery and equipment were purchased at a total invoice cost of P260,000, which included a P10,000 charge for freight. Installation cost of P40,000 was incurred. On June 30, a machine purchased for P60,000 two years ago was sold for P36,000. On December 31, the entity purchased a new automobile for P460,000 cash and trade-in of an automobile purchased for P540,000 three years ago. The new automobile has a cash price of P570,000. * Required: Determine the following for the current year: 1. Depreciation of land improvements 2. Depreciation of building 3. Depreciation of machinery and equipment 4. Depreciation of automobiles 799
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