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The ember 31, 2021.

The ember 31, 2021.

FINANCIAL ACCOUNTING
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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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
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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