TRUE OR FALSE? Avocado Inc. acquire a machinery at a cost of P10,000,000 on January 1, 2021 to be used in the business. It has an estimated life of 5 years and a residual value of P1,000,000. On January 1, 2024, the management of Avocado Inc decided to classify the said machinery as held for sale. The fair value less cost of disposal was estimated at P3,800,000. On July 1, 2024, the machinery was sold for P3,000,000. The accumulated depreciation of the machinery on January 1, 2024 is P 4,600,000.

Q: On July 1, 2022, Proton, Inc. sells equipment for P44,000. The equipment originally cost P120,000,…

A: Given: - Cost= 120,000 Accumulated Depreciation=70,000 Salvage value=20,000 Useful life= 5 years

Q: Nixon

A: In this question, we have to find out the gain on the sale of the plant by deducting carrying cost…

Q: On January 1, 2022, Villanueva Company classified noncurrent assets as held for sale that had a…

A: Noncurrent assets are long-term investments that will not be fully recognized within the fiscal…

Q: On 1 July 2019 Manila Ltd sold an item of plant to Tokyo Ltd for $600,000 when its carrying value in…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: years. It is the company's policy to transfer portion of the revaluation surplus to retained…

A: The depreciation expense per year after revaluation is same as before revaluation.

Q: Summer Co. uses the cost model to account for its property, plant and equipment (PPE).  The PPE was…

A: A Cost of PPE on Jan 1,2020  $      575,000 B Useful life(years)                    14 C…

Q: Avocado Inc. acquire a machinery at a cost of P10,000,000 on January 1, 2021 to be used in the…

A: The question is related to the Depreciation Accounting. The details are given regarding the same.

Q: UNO COMPANY purchased equipment for P5,000,000 on January 1, 2013 with a useful life of ten years…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: On January 1, 2020, HOWLSCo. acquired an investment property at a total cost of P25,000,000. At…

A: As per PAS 40" Investment Property" Initial cost of property measured at Cost including transaction…

Q: Blossom Limited purchased equipment on February 1, 2024, at a cost of $263,360As the CFO of the…

A: Depreciation is the reduction in the value of asset due tonormal wear and tearEffluxion of…

Q: Create Co. purchased equipment on November 1, 2021 for P850,000. The company estimates that the…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: On January 1, 2022, Villanueva Company classified noncurrent assets as held for sale that had a…

A: Introduction: A noncurrent asset is one that is not projected to be utilized within one year. If a…

Q: On, April 1, 2020, S. Products Co. purchased new machinery for $450,000. The machinery has an…

A: The objective of the question is to journalize all entries required for the machine from April 1,…

Q: How much is the loss/gain on classification of the old machinery as held for sale? What is the…

A: Loss on the classification of the old machinery as held for sale is P 3.2 million. Journal entry to…

Q: Vaughn Ltd. purchased a building on January 1, 2021 for $14,610,000. Vaughn accounted for this asset…

A: Jan 1, 21 Building    a/c                     Dr         1,46,10,000     >>>> To Bank…

Q: UNDOS COMPANY purchased equipment for P5,000,000 on January 1, 2013 with a useful life of ten years…

A: When an assets cease to be used in regular use and held for sale , then it should be carry at fair…

Q: On January 1, 2022, Villanueva Company classified noncurrent assets as held for sale that had a…

A: Asset  classified as "held for use" means that the disposal of the asset will not take place and if…

Q: Maxine Corporation purchased an investment property on January 1, 2017 for a cost of $2,200,000. The…

A: Depreciation expense is related to the drop in the value of an asset periodically because of the…

Q: 1.What is the carrying amount of the impaired asset on December 31, 2027? 2. What amount should be…

A: Carrying amount is the amount at which an asset is recognised after deducting any accumulated…

Q: On January 1, 2019, Allen Corp. purchased equipment for $760,000. At the time, it was estimated that…

A: Straight-line depreciation evenly distributes the cost of an asset over its useful life, subtracting…

Q: the straight-line method. nuary 2, 2021, Chamber Company fied this asset as held for sale. Buil to…

A: A Fixed Asset is usually reported at the cost or fair value unless and until it is meant to be sold.

Q: P22,000,000 and residual value of P4,000,000 and revised remaining life of 10 years. It is the…

A: As per the policy, the revaluation surplus is required to be transfer to retained earnings. The…

Q: On 30 June 2019, TIE Ltd acquired a machire for $180 000 cash, with an expected useful life of 9…

A:

Q: Robust Company purchased an investment property on January 1, 2019, at a cost of P4,000,000. The…

A: A recognized gain occurs when an investment or asset is sold for a price that is larger than what…

Q: On July 1, 2022, WAVY Company has a building with a cost of P4,000,000 and accumulated depreciation…

A: Asset- held for sale means those noncurrent assets owned by the company which it is planning to sell…

Q: On 1 January 2019, ABC, Inc. decided to replace its existing machinery which it had acquired on 1…

A: Replacement of Old machinery- 01-01-2019 Purchase of Old machinery=01-01-2016 New machinery…

Q: depreciation expense

A: Depreciation expense = (Cost or last fair value - Residual value)/Useful life in years

Q: equipment for $240,000. The equipment is expected to have a six-year useful life with no residual…

A: Revaluation of depreciation is used in an organization where a corporation evaluates and changes the…

Q: The Lewis Company acquired a large, highly-automated machine for $3,000,000 on February 28, 2016.…

A: Cost of the machine= $30,00,000 Estimated useful life- 8 year The residual value of the machine=…

Q: JPHEI Company purchased a machine on January 1, 2016 for P6,000,000. At the date of acquisition, the…

A: Solution: Accumulated depreciation for 3 years (from 2016 to 2018) = (Cost - residual value) * 3/ 6…

Q: D Company purchased an equipment at P6,500,000 on January 1, 2020 which will be used for a total of…

A: Revaluation Model A company has the choice to carry a fixed asset at its revalued value under the…

Q: Blossom Company purchased a warehouse on January 1, 2019, for $480,000. At the time of purchase,…

A: Impairment losses are important because they ensure that the financial statements accurately reflect…

Q: Them Company has a single investment property, which had original cost of P5,800,000 and estimated…

A: In case of Fair value model, assets is measured at fair value and any change in fair value during…

Q: by issuing 1,000 ₱1,000 8% bonds, currently quoted at 103. Provided that the entity is using the SYD…

A: Depreciation expense refers to the reduction in the cost of a fixed asset due to its use or passage…

Q: Rigley Industries sells a plant asset which originally cost $240,000 for $90,000 on December 31,…

A: SOLUTION-   GAIN OR LOSS ON DISPOSAL = ORIGINAL COST -ACCUMULATED DEPRECIATION- SALES VALUE.

Q: Culver Ltd. purchased a building on January 1, 2021 for $14,880,000. Culver accounted for this asset…

A: Journal entries are prepared before preparing any other ledger account, financial statement, etc.…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.