Surat Limited paid cash
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- Surat Limited paid cash to acquire an aircraft on January 1, 2020, at a cost of 30,000,000 rupees. The aircraft has an estimated useful life of 40 years and no salvage value. The company has determined that the aircraft is composed of three significant components with the following original costs (in rupees) and estimated useful lives: Component Cost Useful Life Fuselage 10,000,000 40 years Engines 15,000,000 30 years Interior 5,000,000 20 years 30,000,000 The U.S. parent of Surat does not depreciate assets on a component basis, but instead depreciates assets over their estimated useful life as a whole. Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes. Required: a. Prepare journal entries for this aircraft for the years ending December 31, 2020, and December 31, 2021, under (1) IFRS and (2) U.S. GAAP. b.…meck my work Surat Limited paid cash to acquire an aircraft on January 1, 2020, at a cost of 33,260,000 rupees. The aircraft has an estimated useful life of 40 years and no salvage value. The company has determined that the aircraft is composed of three significant components with the following original costs (in rupees) and estimated useful lives: Component Fuselage Engines Interior Cost 12,400,000 15,600,000 5,260,000 33,260,000 Useful Life 40 years 30 years 20 years ed ak The U.S. parent of Surat does not depreciate assets on a component basis, but instead depreciates assets over their estimated useful life as a whole. nces Assume that a foreign company usng IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes. Required: a. Prepare journal entries for this aircraft for the years ending December 31, 2020, and December 31, 2021, under (1) IFRS and (2) U.S. GAAP, b. Prepare the…Whispering Winds Corp. purchased a 777 aircraft on January 1, 2020 at a cost of $40,400,000. The estimated useful life of the aircraft is 20 years, with an estimated salvage value of $6,060,000.Compute the accumulated depreciation and book value at December 31, 2022 using the straight-line method and the double-declining-balance method. Straight-line Declining-balance Accumulated depreciation $enter a dollar amount $enter a dollar amount Book value $enter a dollar amount $enter a dollar amount
- The cost of equipment purchased by Oriole, Inc., on June 1, 2025, is $90,300. It is estimated that the machine will have a $6,300 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000, and its total production is estimated at 600,000 units. During 2025, the machine was operated 7,260 hours and produced 66,550 units. During 2026, the machine was operated 6,655 hours and produced 58,000 units. Compute depreciation expense on the machine for the year ending December 31, 2025, and the year ending December 31, 2026, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 45,892.) a. Straight-line b. Units-of-output C. Working hours d. Sum-of-the-years'-digits $ $ $ $ e. Double-declining-balance $ 2025 $ $ $ $ +A $ 2026The cost of equipment purchased by Oriole, Inc., on June 1, 2025, is $90,300. It is estimated that the machine will have a $6,300 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000, and its total production is estimated at 600,000 units. During 2025, the machine was operated 7,260 hours and produced 66,550 units. During 2026, the machine was operated 6,655 hours and produced 58,000 units. Compute depreciation expense on the machine for the year ending December 31, 2025, and the year ending December 31, 2026, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 45,892) a. b. Straight-line Units-of-output C. Working hours d. Sum-of-the-years-digits $ $ to e. Double-declining-balance $ tA 2025 7000 9310 14520 21000 25826 $ $ $ GA $ 2026 12000 8120 13310 14850 18440Grumpy Inc purchased a machine on January 1, 2021, at a cost of $120,000. The machine was originally estimated to have a salvage value of $15,000 and an estimated life of 3 years. The machine is expected to produce a total of 100,000 components during its life, distributed as follows, 40,000 in 2021, 35,000 in 2022, and 25,000 in 2023. Required: a) Calculate the amount of depreciation to be charged in each of the three years, using each of the following methods. i) Straight-line method ii) Units of activity iii) Declining balance at a rate of 200% b) Which method results in the highest depreciation expense: i) During the first two years? i) Over all three years? Part 2 - 7 Marks Sleepy Ltd negotiated a purchase of land, building and equipment from Bambi Corp. The purchase was completed on June 28, 2021 at a total cash cost of $800,000. The estimated market value of each asset at the time was: land, $330,000; building, $520,000; and machinery, $150,000. Required: 1. Prepare journal…
- Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $48,000 The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $3,000. On January 1. 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,200 Exercise 11-23 (Algo) Part 1 Required: 1. Prepare the year-end journal entry for depreciation on December 31, 2024 No depreciation was recorded during the year Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar. No 1 Event 1 Answer is complete and correct. General Journal Depreciation expense Accumulated depreciation-computer Debit 3,600Ⓒ Credit 1600Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $57,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $6,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,200. Required: 1. Prepare the year-end journal entry for depreciation on December 31, 2024. No depreciation was recorded during the year. Record depreciation expense for 2024. Event General Journal Debit Credit 1 Depreciation expense 4,425 Accumulated depreciation—computer 4,425 Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-declining-balance method instead of the straight-line method. Event General Journal Debit Credit 1 Depreciation…Qasio Private Limited (Pvt) developed a new intangible product. In developing this intangible asset, it incurred the following costs: Research R50 000, Development Costs R150 000, Marketing costs R 25 000. The Research costs were incurred between July 2020 and October 2020. The Development costs were incurred between November 2020 and December 2020. The useful life of the product arising from this project is expected to be five years, the Intangible asset was brought into use effective 1 January 2021.Additional informationQasio has a 31 December year endRequiredPrepare ALL the journal entries as at 31 December 2020 and 31 December 2021.
- Qasio Private Limited (Pvt) developed a new intangible product. In developing this intangible asset, it incurred the following costs: Research R50 000, Development Costs R150 000, Marketing costs R 25 000. The Research costs were incurred between July 2020 and October 2020. The Development costs were incurred between November 2020 and December 2020. The useful life of the product arising from this project is expected to be five years, the Intangible asset was brought into use effective 1 January 2021. Additional information Qasio has a 31 December year end Required Prepare ALL the journal entries as at 31 December 2020 and 31 December 2021.ORCHID Company purchased machinery on January 1, 2020. It has an estimated useful life of four years and a residual value of ₱500,000. The machine is being depreciated using SYD Method. The depreciation applicable to this fixed asset for 2021 is ₱1,200,000. What was the carrying value of the machinery on December 31, 2021? ₱ 2,800,000 ₱ 1,700,000 ₱ 3,300,000 ₱ 1,800,000Bugis Corp. acquired a machine on January 1, 2012. Details of the machine at December 31, 2019 are given below: Component Cost Depreciation basis Engine P170,000,000 Useful life of 40,000 hours Outer casings 510,000,000 25 years straight line Other components 255,000,000 12 years straight line P765,000,000 During the year 2020, the following events took place: Engine, which had run for 30,000 hours till date developed serious snags. It was replaced by a better engine with a cost of P238 million and estimated life of 50,000 hours. The new engine was used for 5,000 hours during the year. Polishing and painting was done to the outer casings at a cost of P1.3 million. Other components were upgraded at a cost of P102 million. The remaining life of the other components is 5 years. Compute the total depreciation for the year 2020, assume that all the work mentioned above was completed at the beginning of 2020. P85,850,000 P90,950,000 P81,676,470 P81,600,000