Exercise 11. Determine fixed asset's book valueThe balance in the equipment account is P518,500 and the balance in the accumulated depreciation- equipment account is P120,750. What is the book value of the equipment?Exercise 12. Straight-line depreciationA refrigerator used by a meat processor has a cost of P112,000, an estimated residual value ofP18,000 and an estimated useful life of 8 years. What is the amount of the annual depreciationcomputed by the straight-line method?Exercise 13. Partial-year depreciationSandblasting equipment acquired at a cost of P64,000 has an estimated residual value of P5,200 andan estimated useful life of 6 years. It was placed in service on April 1 of the current fiscal year, whichends on December 31. Determine the depreciation for the current fiscal year and for the followingfiscal year by straight-line method.

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The balance in the equipment account is P518,500 and the balance in the accumulated depreciation - equipment account is P120,750. What is the book value of the equipment?

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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Question

Exercise 11. Determine fixed asset's book value
The balance in the equipment account is P518,500 and the balance in the accumulated depreciation
- equipment account is P120,750. What is the book value of the equipment?
Exercise 12. Straight-line depreciation
A refrigerator used by a meat processor has a cost of P112,000, an estimated residual value of
P18,000 and an estimated useful life of 8 years. What is the amount of the annual depreciation
computed by the straight-line method?
Exercise 13. Partial-year depreciation
Sandblasting equipment acquired at a cost of P64,000 has an estimated residual value of P5,200 and
an estimated useful life of 6 years. It was placed in service on April 1 of the current fiscal year, which
ends on December 31. Determine the depreciation for the current fiscal year and for the following
fiscal year by straight-line method.

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