What is the consolidated depreciation expense of equipment for the year ended December 31, 2010
Q: 1. What amount of depreciation should be reported in the historical cost income statement for 2021?…
A: 1. Depreciation Expense based on Historical Cost = P5,000,000/5years = P1,000,000 2.…
Q: Chloe Company acquires equipment on January 3, 2024. The company uses the diminishing-balance method…
A: Depreciation expense is reduction in the value of assets due to its use, wear or tear.Salvage value…
Q: Which of the following depreciation methods applies a uniform depreciation rate each period to an…
A: The depreciation expense is the reduction in the value of assets due to the use of that asset or…
Q: Depreciation expense for a period is the a. original cost of an asset - accumulated depreciation. b.…
A: Depreciation is defined as the allocation of the depreciable ( Cost- Residual value/ Useful life)…
Q: which method of depreciation is used when the cost of an asset is written off in equal amounts over…
A: Depreciation represents the reduction in the value of an asset over an expected life.
Q: Describe the diff erent depreciation methods for property, plant, and equipment and theeff ects of…
A: Depreciation: It is a concept that is used to measure the reduction in the usefulness of fixed…
Q: What is the amount of the annual depreciation computed by the straight-line method?
A: Depreciation: It is the reduction in the value of an asset due to normal wear and tear,…
Q: Under what depreciation method(s) is an asset’s bookvalue used to calculate depreciation each…
A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…
Q: Why does the depreciation included in computing the annual cost of annual worth method but not in…
A: Depreciation is a separate provision for fixed assets. Fixed amount is charged out of profit during…
Q: Assets have been carried at cost since acquisi used. On January 1, 2015, the entity decided to reva…
A: Depreciation means a fall in value of assets due to wear and tear, eflux of time, and obsolecense…
Q: Question 1 Glowing Incorporation closes its accounts on March 31 annually. Below is an extract of…
A:
Q: Looking for Decpreciation for Year 4 under Units of production.
A: 1. Straight Line Depreciation: Depreciation Expense = (Cost - Salvage Value) / Useful Life Given:…
Q: In the audit of the orporation for the year 2020, the following items and Information appeared in…
A: Depreciation is a decrease in the value of assets such as equipment due to wear and tear,…
Q: ing useful life with no expected salvage lance sheets for Falcon and Rodent include quipment and…
A: To calculate consolidated amounts for equipment and accumulated depreciation, inter co gains and…
Q: Which method of computing depreciation expense results in the amount of depreciation for each year…
A: Unit of Production Method:-This method calculates depreciation for the unit produces in a year…
Q: Estimate the average total estimated useful life of depreciable property, plant, and equipment. Does…
A: Plant, property and Equipment refers to the tangible asset of the firm. Any tangible asset have a…
Q: Compute for the TOTAL amount of Accumulated depreciation for the company's PPE
A: Depreciation Expenses It is important to provide depreciation cost to the assets which can reveal…
Q: If a depreciable property is revalued at the middle of the current year, how is the depreciation…
A: Assets: Assets are the resources of an organization used for the purpose of business operations.…
Q: Which of the following depreciation methods applies a uniform depreciation rate each period to an…
A: Depreciation is a way of declining the cost of assets over the useful life of assets, the company…
Q: years
A: Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its…
Q: depreciation for the current year using the composite method
A: Asset name Cost Residual value Depreciable amount (Cost -Residual value) Useful life in years…
Q: 1. Compute for the carrying value of the intangible assets at December 31, 2019. 2. How much is the…
A: Intangible Assets while recognition which is constructed inhouse The cost related upto establishing…
Q: Information on Mix Co.'s equipment on June 30, 20x8 is shown below: Equipment (at cost) Accumulated…
A: Assets as per the revaluation model are recognized at a revalued value with less depreciation and…
Q: Current year’s depreciation charge relating to Equipment used for designing products should be…
A: The depreciation is an expense charged by business on its fixed assets.
Q: Which method of deprecation results in a lower amount for depreciation each year? OA. Units of…
A: Depreciation is an accounting method used to allocate cost of a tangible asset over its useful life.…
Q: Compute the first-year depreciation using the straight-line method. Straight-Line Depresiation…
A: Straight line method of depreciation is that method in which business charges full cost of asset as…
Q: What categories of property, plant, equipment, and intangible assets does Targetreport in its…
A: Balance sheet is statement of assets and liabilities as on a particular date
Q: Unseld, Inc.'s property, plant and equipment at Original cost Year Purchased Useful life Salvage…
A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…
Q: How do I figure out the depreciation amount for the sum of the years digit method
A: Depreciation is the expense which is recorded for the reduction in the value of asset due to its…
Q: Contrast the effects of the three depreciation methods on (1) depreciation expense, (2) net income,…
A: 3.) Accumulated Depreciation 4.)Carrying Amount Straight line Depreciation method Increases by…
Q: Demonstrate how the MACRS depreciation percentages are calculated by theIRS using the half-year…
A: The first half-year convention is included in the IRS depreciation tables. In the disposal year,…
Q: How to do depreciation with sum-of-the-year digit method.
A: The sum of the year's digits method is used to accelerate the recognition of depreciation over the…
Step by step
Solved in 2 steps
- On January 1, 2022, P Company acquired 80% of S Company forP2,000,000. The fair value of identifiable net assets is P1,800,000. NCI ismeasured at fair value. During 2022, P Company ships merchandise to SCompany costing P1,000, 000 at 20% above cost. Additional data are asfollows:P Company S CompanySales 5,500,000 2,500,000Cost of Sales 3,200,000 1,600,000Operating Expense 650,000 300,000The ending inventories of S Company includes merchandise from PCompany amounting to P60,000. Impairment of goodwill is P20,000.How much is the consolidated gross profit?On January 1, 20X1, XYZ, Inc. purchased 70% of Set Corporation for $469,000. On that date the book value of the net assets of Set totaled $500,000. Based on the appraisal done at the time of the purchase, all assets and liabilities had book values equal to their fair values except as follows: Book Value Fair Value Inventory $100,000 $120,000 Land 75,000 85,000 Equipment (useful life 4 years) 125,000 165,000 The remaining excess of cost over book value was allocated to a patent with a 10-year useful life. During 20X1 XYZ reported net income of $200,000 and Set had net income of $100,000. What income from subsidiary did Promo include in its net income if Promo uses the simple equity method? a. $70,000 b. $42,000 c. $38,000 d. $110,000On January 1, 2025, Caramel Company purchased 100% of the common stock of Harlor Company for $590,000 cash. Fair values differed from book values as follows: Fair value Land 100,000 Patent 250,000 Bonds Payable 105,000 The trial balances of the companies at the acquisition date are as follows: Trial Balance Account Titles Caramel Harlor Cash 650,000 65,000 Land 120,000 30,000 Buildings, net 250,000 180,000 Goodwill 400,000 200,000 Current Liabilities 170,000 75,000 Bonds Payable 500,000 100,000 Common Stock 70,000 30,000 APIC 350,000 70,000 Retained Earnings 330,000 200,000 The amount reported for Cash on the consolidated balance sheet at the acquisition date is
- Peer, Inc. acquires 75 percent of Sea-breeze Corporation for P600,000 cash on January 1, 2016. The remaining percent of the Sea-breeze shares traded near a total value of 200,000 both before and after the acquisition date. NCI is measured on a full basis .On January 1, 2016, Sea-breeze had the following assets and liabilities: Book Value Fair Value Current Assets P 250,000 P 250,000 Land 100,000 100,000 Building (net) – 5-year-year life 400,000 350,000 Equipment (net) – 8-year life 300,000 400,000 Patent (10-year life) -0- 50,000 Accounts Payable (200,000) (200,000) Bonds Payable – 5-years (150,000) (175,000) Net P 700,000 P 775,000 Common Stock P 650,000 Retained Earnings P 50,000 The companies’ financial statements for the year ending December 31, 2016 using cost method are as follows: Peer Sea-Breeze Revenue P (800,000) P (250,000) Operating expenses…On January 1, 2025, Henderson Company purchased 100% of the common stock of Caramel Company for $590,000 cash. Fair values differed from book values as follows: Fair value Land 100,000 Patent 250,000 Bonds Payable 105,000 The trial balances of the companies at the acquisition date are as follows: Trial Balance Account Titles Henderson Caramel Cash 650,000 65,000 Land 120,000 30,000 Buildings, net 250,000 180,000 Goodwill 400,000 200,000 Current Liabilities 170,000 75,000 Bonds Payable 500,000 100,000 Common Stock 70,000 30,000 APIC 350,000 70,000 Retained Earnings 330,000 200,000 Which of the following is not one of the eliminations and adjustments included on the consolidation worksheet at the acquisition date? Question 9Answer a. Debit to Common Stock for $30,000 b. Credit to Goodwill for $200,000 c. Credit to Investment in Sub for $590,000 d. Debit to Land for…On January 1, 2025, Henderson Company purchased 100% of the common stock of Caramel Company for $590,000 cash. Fair values differed from book values as follows: Fair value Land 100,000 Patent 250,000 Bonds Payable 105,000 The trial balances of the companies at the acquisition date are as follows: Trial Balance Account Titles Henderson Caramel Cash 650,000 65,000 Land 120,000 30,000 Buildings, net 250,000 180,000 Goodwill 400,000 200,000 Current Liabilities 170,000 75,000 Bonds Payable 500,000 100,000 Common Stock 70,000 30,000 APIC 350,000 70,000 Retained Earnings 330,000 200,000 The amount reported for Cash on the consolidated balance sheet at the acquisition date is Question Answer a. $125,000 b. $650,000 c. $65,000 d. $715,000
- P Company acquired 90% of S Corporation on January 1, 2014 for $2,250,000. S had net assets at that time with a fair value of $2,500,000. At the time of the acquisition, Patterson computed the annual excess fair-value amortization to be $20,000, based on the difference between S's net book value and net fair value. Assume the fair value exceeds the book value, and $20,000 pertains to the whole company. Separate from any earnings from S, P reported net income in 2014 and 2015 of $550,000 and $575,000, respectively. Calculate the Investment in S shown on P's ledger at December 31, 2014. S reported the following net income and dividend payments.P Company acquired 90% of S Corporation on January 1, 2014 for $2,250,000. S had net assets at that time with a fair value of $2,500,000. At the time of the acquisition, Patterson computed the annual excess fair-value amortization to be $20,000, based on the difference between S's net book value and net fair value. Assume the fair value exceeds the book value, and $20,000 pertains to the whole company. Separate from any earnings from S, P reported net income in 2014 and 2015 of $550,000 and $575,000, respectively. Calculate the Investment in S shown on P's ledger at December 31, 2014. Calculate the Investment in S shown on P's ledger at December 31, 2015. S reported the following net income and dividend payments: (refer to attached picture)On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for P560,000. XYZ Corporation had the following book and market values at acquisition date. In good accounting form, please. Thank you! <33
- On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for P560,000. XYZ Corporation had the following book and market values at acquisition date. what is the goodwill recognized on the acquisition date balance sheet?PAR Inc. purchased 70% of SUBS Inc. on January 1, 2020 for $2,100,000. SUBS's common shares and retained earnings were worth $850,000 each on that date. SUBS uses the cost method internally to account for the investment. The acquisition differential was allocated as follows: Trademark $38,000 (which had not been previously recorded) Inventory $10,000 (fair value in excess of book value) The balance was allocated to goodwill. The trademark had an estimated remaining useful life of 12 years from the date of acquisition. In 2020, PAR’s net income was $300,000 and SUBS's net income was $72,000. During 2020, SUBS declared and paid $20,000 in dividends to shareholders on record. Required:a) Calculate PAR’s consolidated income for 2020. b) Calculate income attributable to PAR for 2020. c) Calculate income attributable to non-controlling interest for 2020. d) Calculate non-controlling interest as reflected in equity at December 31, 2020.Alpha Company used debentures with a par valueof $660,000 to acquire 100% of Zeta, on January 1, 2013. On that date the fair value of the debentures issued was $644,000. The following balance sheet data were reported by Zeta at the point of the acquisition: Historical Cost Fair Value Cash and Receivabled 80,000 75,000 Inventory 145,000 200,000 Land 75,000 75,000 Plant & Equipment 450,000 350,000 Less: Accumulated Depreciation -170,000 Total Assets 580,000 700,000 Accounts Payable 50,000 50,000 Common Stock 100,000 Additional Paid i n Capital 60,000 Retained Earnings 370,000 Total Liabilities & Equity 580,000 Prepare the entry to record the above transaction.