PROBLEM 5-7 Computotion of Cost of Machine Acqutred and Sold Phosphorus Co. provided you the following information in relatian to its property, plant, and equipment account: Equlpment Accumulated depreciation Beginning 100,000 15,000 End 120,000 18,000 95 Scanned with CamScanner Additional Information: a) Depreciation Is 15% per annum. b) At the start of the year, Phosphorus Co. acquired an equipment and at the same time disposed of an equipment with a carrying amount of P25,000, accumulated depreciation of P15,000 for P35,000. Questions: 1. How much is the cost of the machine disposed? a P60,000 b P160,000 C P120,000 d. P40,000 2 How much is the cost of the machine acquired? a P60,000 b 160,000 c. PI20,000 d. P40,000

PROBLEM 5-7 Computotion of Cost of Machine Acqutred and Sold Phosphorus Co. provided you the following information in relatian to its property, plant, and equipment account: Equlpment Accumulated depreciation Beginning 100,000 15,000 End 120,000 18,000 95 Scanned with CamScanner Additional Information: a) Depreciation Is 15% per annum. b) At the start of the year, Phosphorus Co. acquired an equipment and at the same time disposed of an equipment with a carrying amount of P25,000, accumulated depreciation of P15,000 for P35,000. Questions: 1. How much is the cost of the machine disposed? a P60,000 b P160,000 C P120,000 d. P40,000 2 How much is the cost of the machine acquired? a P60,000 b 160,000 c. PI20,000 d. P40,000

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Description: PROBLEM 5-7 Computotion of Cost of Machine Acqutred and SoldPhosphorus Co. provided you the following information in relation to itsproperty, plant, and equlpment account:EquipmentAccumulated depreciation- Beginning100,00015,000End120,00018,00095Sca

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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