What amount should be reported as depreciation expense in Pirn’s consolidated income statements? A. 50,000B. 47,000C. 44,000D. 41,000 Scroll Inc., a wholly owned subsidiary of Pirn, Inc. began operations on January 1, 20x2. Thefollowinginformation is from the condensed 20x2 income statements of Pirn and Scroll:ScrollP300,000(270,000)Р30,000(10,000)(15,000)Р 5,000PirnSalesP500,000Cost of goods soldGross profitDepreciationOther expensesIncome from operationsGain on sale of equipment to ScrollIncome before taxes(350,000)P150,000(40,000)(60,000)50,00012,000P62,000P 5,000Equipment purchased by Scroll from Pirn for P36,000 on January 1, 20x2, is depreciated using thestraight-line method over four years.

The question is multiple choice question. Required Choose the Correct Option.

Scroll Inc., a wholly owned subsidiary of Pirn, Inc. began operations on January 1, 20x2. The followinginformation is from the condensed 20x2 income statements of Pirn and Scroll: Pirn Scroll P300,000 (270,000) P30,000 (10,000) (15,000) P 5,000 Sales Cost of goods sold Gross profit Depreciation Other expenses P500,000 (350,000) P150,000 (40,000) (60,000) 50,000 Income from operations Gain on sale of equipment to Scroll Income before taxes 12,000 P62,000 P 5,000 Equipment purchased by Scroll from Pirn for P36,000 on January 1, 20x2, is depreciated using the straight-line method over four years.

Scroll Inc., a wholly owned subsidiary of Pirn, Inc. began operations on January 1, 20x2. The followinginformation is from the condensed 20x2 income statements of Pirn and Scroll: Pirn Scroll P300,000 (270,000) P30,000 (10,000) (15,000) P 5,000 Sales Cost of goods sold Gross profit Depreciation Other expenses P500,000 (350,000) P150,000 (40,000) (60,000) 50,000 Income from operations Gain on sale of equipment to Scroll Income before taxes 12,000 P62,000 P 5,000 Equipment purchased by Scroll from Pirn for P36,000 on January 1, 20x2, is depreciated using the straight-line method over four years.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which depreciation method would result in the same depreciation expense amount regardless of the partial period cor Select one: a. Sum-of-the-years'-digits b. Declining-balance c. Units-of-production d. Straight-line
On the balance sheet, accumulated depreciation is:   Group of answer choices subtracted from property and equipment. added to total liabilities. added to property and equipment. subtracted from total liabilities.
Lynch Corporation changes from the sum-of-the-years’-digits method of depreciation for existing assets to the straight-line method. How should the change be reported? Explain.
7. What is the amount of revaluation surplus on December 31, 2021? A. 600,000 B. 700,000 C. 800,000 D. 0 E. None of them
kk.2
Q5 Under CCA method, depreciation is provided on the _____ of the asset: a. Historical cost b. Past cost c. Current cost d. Original cost
How would accumulated depreciation be classified on the balance sheet? current asset fixed asset current liability O long term liability
Owe
Please explain how you arrived at the accumulated depreciation figure at 5.2
Question 16 The undepreciated capital cost (UCcC) is equal to O a, the book value of an asset for the purpose of taxation under the CCA system. O b, the market value of an asset. O , the salvage value of an asset. O d, the scrap value of an asset.
Time left 0:15:48 18 When accounting for self-constructed PPE and computing the amount of interest cost to be capitalized, the concept of "avoidable interest" refers to t of O a. that portion of average accumulated expenditures on estion which no interest cost was incurred O b. a cost of capital charge for equity O c. that portion of total interest cost which would not have been incurred if expenditures for asset construction had not been made O d. the total interest cost actually incurred
On January 1, 2025, Pharoah Company purchased a machine costing $356000. The machine is in the MACRS 5-year recovery class for tax purposes and has an estimated $71000 salvage value at the end of its economic life. Assuming the company uses the general MACRS approach, the MACRS deduction for tax purposes for the year 2025 is Recovery Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 MACRS Depreciation Rates By Class of Property 10-Year (200% DB) 3-Year 5-Year 7-Year (200% DB) (200% DB) (200% DB) 33.33 44.45 14.81* 7.41 20.00 32.00 19.20 11.52* 5.76 14.29 24.49 17.49 12.49 8.93* 8.92 8.93 4.46 10.00 18.00 14.40 11.52 9.22 7.37 6.55* 6.55 6.56 6.55 3.28 15-Year (150% DB) 5.00 9.50 8.55 7.70 6.93 6.23 5.90* 5.90 5.91 5.90 5.91 5.90 5.91 5.90 20-Year (150% DB) 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462* 4.461 4.462 4.461 4.462 4.461 SUPPORT