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

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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

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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

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