Use the following information for the next four items:Information on Mix Co.'s equipment on June 30, 20x8 is shown below:Equipment (at cost)Accumulated depreciation500,000150,000350,000PPThe equipment consists of two machines, Machine A and Machine B. Machine A has a cost ofP300,000 and a carrying amount of P180,000. Machine B has a cost of P200,000 and a carrying amountof P170,000. Both machines are measured using the cost model and depreciated on a straight linebasis over a ten-year period.On December 31, 20x8, Mix Co. decided to change from the cost model to the revaluation model.Information on this date follows:Remaining useful life6 years5 yearsFair valuesMachine AP180,000P155,000Machine BOn June 30, 20x9, Machine A and Machine B have fair values of P163,000 and P136,500, respectively,and remaining useful lives of 5 years and 4 years, respectively. The tax rate is 30%.12. How much is the depreciation expense for the fiscal year ended June 30, 20x9?13. How much is the revaluation surplus on December 31, 20x8?14. How much is the carrying amount of the equipment on June 30, 20x9?15. Entity A has identified indications that its plant is impaired. The plant has a carrying amount ofP56,000,000. An independent valuer determined the following:Replacement cost of the plantP90,000,000Page | 6Actual life15 years25 years20 yearsEffective lifeRemaining economic lifeEntity A's tax rate is 30%.How much is the revaluation surplus, net of tax? Use the following information for the next four items:Light Company bought a machine for P300,000 on January 1, 20x8. The machine's useful life is 10years and it is estimated to have a zero residual value and is depreciated using the straight-linemethod.The revalued amount of the machine is as follows:Fair values of the machineP 360,000335,000320,000December 3120x820x92x10The enacted tax rate was 30% for each year8. The revaluation surplus in the equity section of Light Company's December 31, 20x8 statementof financial position is9. The amount of depreciation expense to be recognized in 20x9 is10. The amount of revaluation surplus transferred to retained earnings in 20x9 is11. The revaluation surplus in the equity section of Light Company's December 31, 2x10 statementof financial position is

Name: Use the following information for the next four items:Information on
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Use the following information for the next four items:Information on Mix Co.'s equipment on June 30, 20x8 is shown below:Equipment (at cost)Accumulated depreciation500,000150,000350,000PPThe equipment consists of two machines, Machine A and Machine

“Since you have asked multiple questions, we will solve one question for you. If you want any…

Business

Accounting

Use the following information for the next four items: Light Company bought a machine for P300,000 on January 1, 20x8. The machine's useful life is 10 years and it is estimated to have a zero residual value and is depreciated using the straight-line method. The revalued amount of the machine is as follows: Fair values of the machine P 360,000 335,000 320,000 December 31 20x8 20x9 2x10 The enacted tax rate was 30% for each year 8. The revaluation surplus in the equity section of Light Company's December 31, 20x8 statement of financial position is 9. The amount of depreciation expense to be recognized in 20x9 is, 10. The amount of revaluation surplus transferred to retained earnings in 20x9 is 11. The revaluation surplus in the equity section of Light Company's December 31, 2x10 statement of financial position is

Use the following information for the next four items: Light Company bought a machine for P300,000 on January 1, 20x8. The machine's useful life is 10 years and it is estimated to have a zero residual value and is depreciated using the straight-line method. The revalued amount of the machine is as follows: Fair values of the machine P 360,000 335,000 320,000 December 31 20x8 20x9 2x10 The enacted tax rate was 30% for each year 8. The revaluation surplus in the equity section of Light Company's December 31, 20x8 statement of financial position is 9. The amount of depreciation expense to be recognized in 20x9 is, 10. The amount of revaluation surplus transferred to retained earnings in 20x9 is 11. The revaluation surplus in the equity section of Light Company's December 31, 2x10 statement of financial position is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Plant Master Company purchased a delivery van for $35,000 on January 1. The van has an estimated 4-year life with a residual value of $2,000. What would the depreciation expense for this van be in the first year if Plant Master uses the straight-line method? O A. $8,250 B. $35,000 C. $8,750 D. $33,000
V A printing equipment cost P500,000 and the cost of handling and installing is P30,000. The life of the equipment is 5 years. If the book value of the equipment at the end of 3rd year is P146,000, compute the salvage value of this equipment using SYD Method. a)P23,123 b)P50,118 c)P43,194 d)P65,109 e)none of these
am Warren Company plans to depreciate a new building using the double declining balance depreciation method. The building cost is $780,000. The estimated residual value of the building is $48,000 and it has an expected useful life of 25 years. What is the building's book value at the end of the first year? Grew H Multiple Choice O $717,600 $62,400 $31,200 $33.850 < Prev
If a new machine is purchased for OMR 250,000 that has a useful life of 5 years with no residual value and the depreciation is expected to be charged on straight –line method. What would be the carrying value of the machine in the financial statements after 2 years? a. OMR 40,000 b. OMR 100,000 c. OMR 150,000 d. OMR 180,000
Alpesh
Mazaya Company has decided to sell one of its old machines on June 30, 2011 The machine was purchased for RO:120,000 on January 1, 20o07, and was depreciated on a straight-line basis for 10 years with no residual value f the machine was sold for R.O 33.000, what was the amount of the gain or loss recorded at thetime of the sale? Select one O a RO 69,00. b. RO 27.000. O CRO33,00 O d RO 81,000.
CVM Inc bought a machine for $22,000. Its estimated life is 4 years with a residual value of $1,000. Using the straight-line method, what is the book value of the machine at the end of year 2? What is the book value?
A building was constructed at a cost of P 1 000 000. This building was estimated to have a useful life of 50 years with no scrap value. How much is the building worth at the end of 40 years if depreciation charges had been set as follows: double declining for the first 15 years; SYD for the succeeding 15 years and straight line method for the next succeeding 10 years. a. P90 347.74 c. P63 145.45 b. P80 312.5 d. P45 641.2
A plant bought a calciner for P220,000 and used it for 10 years, the life span of the equipment. What is the book value of the calciner after 5 years of use? Assume a scrap value of P22,000 for declining balance method.
Nuts-R-Us, Inc. purchased nut-shelling equipment at a total cost of $80,000. The equipment was depreciated by using MACRS with a recovery class of 3 years and an anticipated end-of-useful-life value of $8000. The company has decided the equipment is no longer needed after two years and wishes to determine the minimum value it can accept for the equipment (that is, the lowest value that will result in no loss on the sale). Find the minimum selling price for the equipment.
Quigley, Inc. purchased a machine 4 years ago for $800,000. The machine is being depreciated on a straight-line basis to a salvage value of zero over its estimated useful life of 10 years. What is the annual depreciation expense on this machine? $800,000 $1,000,000 O $80,000 $900,000 None of the other answers in this list are correct. $70,000 $60,000 $700,000