The ember 31, 2021.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...
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![January 1, 2021, the first day of operation.
and is depreciated by the straight line method.
The machine has no residual value, has a five-year life,
Kerr Company purchased a machine for P1,150,000 on
The current cost of the machine. was P1,250,000 on
iho current cost of the machine. was P1,250,000 on
December 31, 2021.
ahe machine has no. residual value, has a five-year life,
1 What amount of depreciation should be reported in the
historical cost income statement for 2021?
a. 230,000
b. 250,000
с. 240,000
d. 200,000
2. What amount of depreciation should be reported in the
current cost income statement for 2021?
а. 140,000-
b. 230,000
c. 240,000
d. 250,000
3. What amount should be reported as realized holding
gain on the equipment for 2021?
a. 20,000
b. 10,000
c. 30,000
d.
4. What amount should be reported as unrealized holding
gain on the equipment for 2021?
100,000
b. 280,000
CC. Sc80,000with CamScanner
d.
а.
50,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff4a7bf35-0e91-42a8-9fff-ef6779a97326%2Fe7119690-6ce2-4005-bd9d-7fd8e5306b59%2F61loydh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:January 1, 2021, the first day of operation.
and is depreciated by the straight line method.
The machine has no residual value, has a five-year life,
Kerr Company purchased a machine for P1,150,000 on
The current cost of the machine. was P1,250,000 on
iho current cost of the machine. was P1,250,000 on
December 31, 2021.
ahe machine has no. residual value, has a five-year life,
1 What amount of depreciation should be reported in the
historical cost income statement for 2021?
a. 230,000
b. 250,000
с. 240,000
d. 200,000
2. What amount of depreciation should be reported in the
current cost income statement for 2021?
а. 140,000-
b. 230,000
c. 240,000
d. 250,000
3. What amount should be reported as realized holding
gain on the equipment for 2021?
a. 20,000
b. 10,000
c. 30,000
d.
4. What amount should be reported as unrealized holding
gain on the equipment for 2021?
100,000
b. 280,000
CC. Sc80,000with CamScanner
d.
а.
50,000
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