the following information for the next three (3) questions: thwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an exp years. Straight line depreciation method is in place for similar items. On January 1, 2024, the asset ng a sound value of P4,500,000. On January 1, 2027, the asset had a recoverable value of P1,375,000. How much is credited to the revaluation surplus as a result of the revaluation in 2024? A. 1,500,000 C. 1,000,000 B. 1,250,000 D. 750,000 Vhat is the correct depreciation to be recognized in 2024? A 750,000 B. 1,000,000 C. 1,250,000 D. 1,500,000 How much is the loss on impairment should be recognized on January 1, 2027? B. 500,000 A 750,000 C. 250,000 D. 0

the following information for the next three (3) questions: thwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an exp years. Straight line depreciation method is in place for similar items. On January 1, 2024, the asset ng a sound value of P4,500,000. On January 1, 2027, the asset had a recoverable value of P1,375,000. How much is credited to the revaluation surplus as a result of the revaluation in 2024? A. 1,500,000 C. 1,000,000 B. 1,250,000 D. 750,000 Vhat is the correct depreciation to be recognized in 2024? A 750,000 B. 1,000,000 C. 1,250,000 D. 1,500,000 How much is the loss on impairment should be recognized on January 1, 2027? B. 500,000 A 750,000 C. 250,000 D. 0

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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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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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