On January 1, 2020, the ROSAS Company bought a machinery costingP1,000,000. The useful life is expected to be 10 years. On July 1, 2025, themachine's engine was replaced at a total cost of P320,000. This replacement willextend the useful life of the asset by an additional 5.5 years from the date ofreplacement. The old engine of the machine had a cost of 250,000. Thedepreciation expense for year 2025 is On January 1, 2020, the ROSAS Company bought a machinery costingP1,000,000. The useful life is expected to be 10 years. On July 1, 2025, themachine's engine was replaced at a total cost of P320,000. This replacement willextend the useful life of the asset by an additional 5.5 years from the date ofreplacement. The old engine of the machine had a cost of 250,000. The loss onreplacement is

The wear and tear of an asset during the useful life of an asset is known as depreciation. The…

Answered: the ROS On January 1, 2020 P1,000,000.…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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XYZ Company purchased a machine on January 1, 2022, for $50,000. The machine has an estimated useful life of 5 years and an estimated salvage value of $5,000. Calculate the annual straight-line depreciation expense for the machine.
Bonita Industries purchased a depreciable asset for $591000 on April 1, 2018. The estimated salvage value is $51000, and the estimated total useful life is 5 years. The straight-line method is used for depreciation. What is the balance in accumulated depreciation on May 1, 2021 when the asset is sold? $297000 $333000 $288000 $252000
A machine which cost Php i0,000 was sold as scrap after being used for ten years. If the Scrap valug was Php500, de termine the total depreciation and book value at the end of Lhe 5th year.
1. The Fairy Company purchased a site for limestone quarry for P 100,000 on January 2, 2020. It estimates that the quarry will yield 400,000 tons of limestone. It estimates that its retirement obligation has a fair value of P 20,000 after which the land can be sold for P 10,000. In 2020, 80,000 tons were quarried and 60,000 tons sold. Cost of production (excluding depletion) are P4 per ton. Compute the total cost of goods sold for 2020.
On January 1, 2022, Layag Company paid P11,000,000 for property containing natural resource of 2,000,000 tons of ore. The present value of the estimated cost of restoring the land after the resource is extracted is P900,000. The land will have a value of P1,500,000 after it is restored for suitable use. Tunnel, bunk houses and other fixed installations are constructed at a cost of P8,000,000 and such expenditures are charged to mine improvements. Operations began on January 1, 2022 and resources removed totaled 600,000 tons. During 2023, a discovery was made indicating that available resource after 2023 will totaled 1,875,000 tons. At the beginning of 2023, additional bunk houses were constructed in the amount of P770,000. In 2023, only 400,000 tons were mined because of a strike. 27) What amount should be recorded as depletion for 2023? A. 3,120,000 B. 2,850,000 C. 1,280,000 D.2,080,000 28) What amount should be recorded as depreciation for 2023?A. 1,120,000 B. 2,400,000 C.…
Speedbag, Incorporated purchased equipment at a cost of $60,000 on July 1, 2023. The expected useful life is 4 years and the asset is expected to have salvage value of $10,000. Speedbag depreciates its assets using the straight-line method. What is the accumulated depreciation for this asset on December 31, 2024? Multiple Choice $30,000 $12,500 $25,000 $18,750
On October 1, 2022, Blossom Company places a new asset into service. The cost of the asset is $101500 with an estimated 5-year life and $20500 salvage value at the end of its useful life. What is the depreciation expense for 2022 if Blossom Company uses the straight-line method of depreciation? O $5075. O $20300. O $4050. O $10150.
On December 31, 2020, a company invested $2,150,000 in an asset. The company estimates that 3,000,000 tonnes will be excavated over the 20 year life of the asset. In order to decommission the asset at the end of the useful life it is estimated that it will cost $485,000. The depreciation method is based on units of production method. The relevant discount rate is 6%. A total of 220,000 tonnes and 205,000 tonnes were excavated in 2021 and 2022 respectively. Required Prepare all journal entries required for the years ended December 31, 2020, 2021 and 2022. (HINT: include the original purchase journal entry and subsequent depreciation and interest entries.)
Company D recently purchased an equipment that costs $50,000, has a life of 4 years and a salvage value of $10,000. The production output of this equipment is 1800 on the first year, 2200 on the second year, 3000 units on the third year, and 4000 units on the fourth year. What is the accumulated depreciation charge on the second year?
On October 1, 2022, Sandhill Co. places a new asset into service. The cost of the asset is $103500 with an estimated 5-year life and $22500 salvage value at the end of its useful life. What is the depreciation expense for 2022 if Sandhill Co. uses the straight-line method of depreciation? O $4050. O $10350. O $20700. O $5175.
The purchased price of the equipment is P12,000 and its estimated maintenance costs are P500 for the first year, P1,500 for the second year, and P2,500 for the third year. After three years of use the equipment is replaced, it has no salvage value. Compute the present equivalent cost of the equipment using 10% interest. (capitalized cost)
Problem 4Illusion Company purchased a tract of resource land in 2019 for P3,960,000. The content of the tract was estimated at120,000 units. When the resource has been exhausted, it is estimated that the land will be worth P120,000.Building was set up at a cost of P960,000 and heavy equipment was purchased in early January 2019 for P1,240,000. Theuseful life of the building is 8 years and the useful life of the equipment is 4 years.In 2019, 12,000 units have been extracted. This was one half of the annual extraction which can be expected following thefirst year of operations. In 2020, 25,000 units were expected.Required:Prepare journal entries to record the transactions relating to the resource property for 2019 and 2020

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