Methods of recording revaluation - Appraised valueUse the following information for the next two questions:On December 31, 20x1, the building of ABC Co. with a historical cost of P320,000,000, accumulateddepreciation of P160,000,000, and an estimated useful life of 20 years has been assessed by anexternal valuer to have an appraised value of $200,000,000. Income tax rate is 30%The entry under the proportional method to record the revaluation includesb. credit to accumulated depreciation fora. debit to accumulated depreciation for $40,000,000P20,000,000c. debit to building for P80,000,000d. credit to building for P80,000,000с

Depreciation is the gradual conversion of the cost of a fixed asset into expense. It does not mean…

Answered: The entry under the proportional method…

The entry under the proportional method to record the revaluation includes a. debit to accumulated depreciation for P40,000,000 b. credit to accumulated depreciation for

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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A fixed asset with a cost of $32,265 and accumulated depreciation of $29,039 is traded for a similar asset priced at $64,781 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,727, at what cost will the new equipment be recorded in the books? a.$64,781 b.$27,538 c.$4,727 d.$1,501
3. The net income reported on the income statement for the current year was $304,374. Depreciation recorded on fixed assets and amortization of patents for the year were $32,397 and $8,545, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: End Beginning Cash $37,946 $53,537 Accounts Receivable 124,179 105,179 Inventories 113,951 87,274 Prepaid Expenses 3,330 8,740 Accounts Payable (merchandise creditors) 50,535 72,784 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? a.$282,800 b.$365,298 c.$299,639 d.$279,858
A fixed asset with a cost of $24,737 and accumulated depreciation of $22,263 is traded for a similar asset priced at $60,057 (fair market value) in a transaction with a commercial substance. Assuming a trade-in allowance of $4,264, at what cost will the new equipment be recorded in the books? a.$4,264 b.$1,790 c.$60,057 d.$20,473
Depreciation by Units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $426,700 and the balance in Accumulated Depreciation—Trucks is $132,940. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $77,000 $11,550 200,000 miles — 30,000 miles 2 117,200 14,064 370,000 $23,440 37,000 3 105,000 14,700 202,000 84,000 20,200 4 127,500 15,300 240,000 25,500 28,800 Question Content Area a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Truck No. Rate per…
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On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows: Please see the attachment for details:
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H1. Account