What is the initial cost of the machine on July 31, 2022?
Q: On December 31, 2023, Pharoah Corporation sold for $112000 an old machine having an original cost of…
A: Lets understand the basics.When asset are sold against notes receivable with zero interest then…
Q: Crane Manufacturing Company acquired a patent on a manufacturing process on January 1, 2020 for…
A: Patent cost of acquisition = $5,550,000Given that useful life of Patient = 10 years Hence…
Q: How much is the amortization expense for the year 2018? 2. What is the patent carrying value at…
A: Amortization of Patent Right
Q: equipment acquired on January 1, 2018 at a cost of P2,200,000 with 20 years estimated useful life.…
A: The tangible assets are the assets that help the company to generate revenue and earn income and It…
Q: Crane Company acquired a patent on an oil extraction technique on January 1, 2020 for $8050000. It…
A: Annual amortization = Cost of the patent / Life of the patent = 8050000/10 years = $805000
Q: ABC, Inc. purchased an equipment at time=0 for $135,077. The shipping and installation costs were…
A: Calculation of Cash Flow in Year 4:The cash flow in year 4 is $123,123.96.Excel Spreadsheet:
Q: ABC, Inc. purchased an equipment at time=0 for $84,362. The shipping and installation costs were…
A: Calculation of Cash Flow in Year 3:The cash flow in year 3 is $64,637.16.Excel Spreadsheet:
Q: what is the intrinsic value of the asset after accounting for the cost of illiquidity?
A: Given in the question: Purchase price of the asset = P1,200,000 The value of the asset has been…
Q: Oscar Company acquired a patent on a manufacturing process on January 1, 2015 for $5,100,000. It was…
A: Answer Patient cost of acquisition = $5100000 Given that useful life of Patient = 12 years…
Q: ABC Company has equipment acquired on January 1, 2018, at a cost of P2,200,000 with an estimated…
A: When a fixed asset is acquired, it will be recorded in the books at its original cost. The asset…
Q: in 5 minutes ABC Company has an equipment acquired on January 1, 2018 at a cost of P2,200,000 with…
A: All fixed assets will have reduction in value over the period of time. Depreciation is being charged…
Q: On January 2, 2023, Saminski, Inc., acquired equipment for $400,000. . The estimated life of the…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Provide Answer with calculation and explanation
A: Step 1: Determine Deferred Gross Profit:The concept of deferred gross profit is used when a business…
Q: DBM: A construction company decided to purchase a concrete mixer truck for $75,000 with a trade-in…
A: A business entity is required to charge the amount of depreciation on the value of the assets so…
Q: CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying $1,000,000,…
A: Depreciation - It refers to the fall in the value of fixed assets due to wear and tear. It is a…
Q: Provide Answer in text Format please
A: To calculate the deferred gross profit, we can follow the given steps: Step 1: Calculation of gross…
Q: Cutter Enterprises purchased equipment for $99,000 on January 1, 2021. The equipment is expected to…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Co. bought a patent from Backo Corp. on January 1, 20x4, for ₱180,000. An independent consultant…
A: The patents have useful economic life and they are amortized over the period of economic life and…
Q: Kansas Enterprises purchased equipment for $78,000 on January 1, 2021. The equipment is expected to…
A: Depreciation rate as per double declining balance method = (100/useful life)×2 Depreciation expense…
Q: Current Attempt in Progress Pharoah Company Ltd. buys equipment on January 1, 2023, for $317,000…
A: Depreciation is used to allocate capital expenditure over the period of useful life of asset. There…
Q: On January 1, 2021, CAE Company acquires an asset for $450,000,000. It had to spend an additional…
A: Part (A) 01-Jan-21 Assets A/c Dr 474000000 To Bank A/c 474000000…
Q: ary 1, 2020, Coco Company purchased factory equipment for P3,000,000. Estimated useful life of the…
A: Solution: Since useful life is 5 years therefore straight line depreciation will be 20% per year.…
Q: On January 1, 2020, Toot Company sold a piece of equipment costing P1,500,000 with accumulated…
A: Basic Accounting Non Interest bearing note, Valuation and amortization
Q: On 1 May 2021, Topdog Ltd. buys and puts into service an item of specialised equipment to increase…
A: Any omitted transaction that is material in nature needs to be recorded in the accounts of the…
Q: On March 1, 2020, Tebow Company purchased a patent for $158,000 cash. Although the patent gives…
A: The objective of the question is to journalize the purchase of the patent and the amortization…
Q: Rambo Manufacturing Co. purchased $2,885,000 in new production equipment during 2022. All of the…
A: Section 179 of the IRS Code of the United States seems to be an instant cost deduction that company…
Q: ABC Corp acquired an equipment with an invoice price of P2,500,000 with terms of 3/30, n/65.…
A: The initial cost is the total cost that is associated with the purchase price of an asset. The…
Q: Kansas Enterprises purchased equipment for $78,500 on January 1, 2024. The equipment is expected to…
A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…
Q: On January 1, 2020, Bake Company sold a piece of equipment costing P1,200,000 with accumulated…
A: Here selling price is determined as follows = down payment received + Present value of non…
Q: In January 1, 2015, Fun company purchased Company A for $40,000 in cash and paid immediately. Fun…
A: It is assumed that there is a typo in the question and the question is asking about the annual…
Q: At the beginning of the current year, MJ Company sold a building with remaining useful life of 30…
A: Hey, since there are multiple sub-parts questions posted, we will answer the first three sub-parts…
Q: On October 1, 2022, Abbott Inc. purchased equipment costing $700,000 by paying $150,000 cash and…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Myron Corp has the following information available related to the equipment it uses in its business.…
A: Introduction: When an organization incurs any expenditure towards extraordinary repair of plant and…
Q: r initially costs P 11,737 and has a salvage value of P 897 at the end of its economic life of 8…
A: Depreciation is a reduction in the value of asset due to wear and tear, obsolescence, passage of…
Q: 4. A broadcasting corporation purchased equipment worth P57, 000 and paid P1, 500 for freight and…
A: Depreciation means cost of tangible assets allocated over its useful life. Depreciation amount is…
Q: Norwich Co. purchased a machine for $65,000 on 1/1/24. It will have an estimated life of eight…
A: The depreciation expense is charged on the fixed assets as a reduction in the value of the fixed…
Q: the entity purchased a m nts of P500,000. The first suance was 10%. The prese an annuity of 1 in…
A: Cost refers to the amount at which the goods are exchanged and purchased in the market by the…
Q: Pronghorn Inc. bought an internet domain name by issuing a $234,000, 6-year, non-interest-bearing…
A: The present value is = The annual payment × PV factor ( 10% , 6 ) $39000 × 4.35526069943 $…
Q: Kansas Enterprises purchased equipment for $73,000 on January 1, 2024. The equipment is expected to…
A: DepreciationDepreciation is defined as an accounting method wherein the cost of tangible assets is…
Q: . On April 22, 2023, Sunlight Enterprises purchased equipment for $134,400. The company expects to…
A: a)depreciable amount is as under:Cost of assets134400Less: residual value12500Depreciable…
Q: On January 2, 2025, Ivanhoe Co. bought a trademark from Rice, Inc. for $1641000. An independent…
A: Amortization is the decrement in the value of intangible assets during the accounting period from…
Q: Amber Mining and Milling, Incorporated, contracted with Truax Corporation to have constructed a…
A: A table that lists the loan and payment information for a decreasing term loan is called an…
A new machine was acquired on July 31, 2022 by Harian Company with the following considerations:
|
Down-payment |
1,000,000 |
|
Total par value of 5,000 ordinary shares issued (FV is P140) |
600,000 |
|
Notes payable in three equal annual installment every July 31, starting 2023 (3 years non-interest bearing; effective rate on this date 9%) |
900,000 |
|
Estimated dismantling after five (5) year life of the machine (at 9% effective rate) |
100,000 |
What is the initial cost of the machine on July 31, 2022?
Step by step
Solved in 3 steps
- CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying $1.000.000, and a payment of $500.000 every December 31 is required for four (4) years. The selling price of the machine, if paid on cash basis, is $2,500,000. The residual value of the machine after its 4-year useful life is $200.000. The company used the double declining balance method in depreciating the machine. How much is the cost of the machine upon acquisition? A. $3,000,000 B. $2,800,000 C. $2,500,000 D. $2,300,000 Can you please answer this proven by a solution?On January 1, 2020 Machu, Inc. acquired mining rights near Cordillera for P20,000,000 for 10 years, there was no cash payment, instead Mach issued a 2-year non-interest bearing note. Since the Company's inception in 1956, the Company continued to restore the lands affected by its mining activities. Management Expects restoration costs to be P2,000,000. Discount rates for similar instruments are as follows: 8% for 2 years and 12% for 10 years. On December 21, 2020, Machu was being sued by one of another corporation over a patent infringement. The Company's legal counsel finds it probable that Machu will be liable for P2,000,000 damages. Machu has a P5,000,000 comprehensive insurance which covers these type of situations. The insurance has a P300,000 deductible clause. How much is the total current liabilities as of December 31,2020During 2022, Brownie Company incurred research and development cost of P272,000 relating to the patent that was granted on July 1, 2022. Cost of registering the patent is P68,000. The patent legal life is 20 years. However, the management expected that the patent will be useful for 10 years only. On December 31, 2022, what amount should be reported as patent, net of accumulated amortization?
- On March 25, 2020, Blue Steel co. purchased a new extrusion machine for Php 3,344,015 with an expected scrap value of Php 167,831 after 6 years. What is the annual depreciation rate (in php) given that the machine is in operation for 1,638 hours per year? note: write the number with at most 2 decimal places without the unit (eg. 75.17 and NOT Php 75.17)Joseph Company purchased equipment on Jan. 1, 2025 for P800,000. The company spent P30,000 for its freight and P50,000 for taxes and other expenses incidental to acquisition. The equipment can be sold for P40,000 after 10 years. It is estimated to produce 336,000 units of product X. The equipment production of product X for the first 5 years follow: Year Units of product X 2025 36,000 2026 34,500 2027 32,500 2028 31,000 2029 28,500 How much is the depreciation Expense for the year 2027 using straight-line method?David Ltd commences operations on 1 July 2020 On the same date, it purchases a machine at a cost of $1000 000 The machine is expected to have a useful life of 4 years, with benefits being uniform throughout its life. It will have no residual value at the end of 4 years Hence, for accounting purposes the depreciation expense would be $250 000 per year For taxation purposes, the ATO allows the company to depreciate the asset over three years—that is, $200 000 per year The profit before tax of the company for each of the next four years (years ending 30 June) is $600 000, $700 000, $800 000 and $900 000 respectively The tax rate is 30 per cent. Required: 1. Calculate the taxable profit on 30 June 2021, 30 June 2022, 30 June 2023.2. Record the necessary journal entries.
- A drilling rig purchased by Challenge Industries should last 7 years. The purchase price was $82,500. Shipping costs were $1,567. The trade - in value is $17,870. Prepare a depreciation schedule using the 150% declining balance method, then enter the accumulated depreciation at the end of year 6 as your answer. (Round the declining balance rate to 4 decimal places, and all dollar amounts to the nearest cent)FDN Trading's Office Equipment account has a balance of P564,000 and Accumulated Depreciation of $164,000 on January 1, 2022. On July 1, 2022, the firm bought additional equipment for $87,000. It is the policy of the firm to depreciate its fixed assets (plant, property, and equipment) at 10% per year with residual value of 10% of acquisition cost. How much is the Depreciation Expense to be reported for the year ended December 31, 2022? Note: Round off final answer to the nearest peso.On July 1, 2020, FDN Company purchased an equipment for P47,100,000. After 5 years of its estimated useful life, it can be sold for P100,000. How much is the carrying amount of the equipment as of December 31, 2021?
- On August 1, Rantoul Stores Inc. is considering leasing a building and purchasing the necessary equipment to operate a retail store. Alternatively, the company could use the funds to invest in $1,000,000 of 4% U.S. Treasury bonds that mature in 15 years. The bonds could be purchased at face value. The following data have been assembled: Cost of store equipment $1,000,000 Life of store equipment 15 years Estimated residual value of store equipment $50,000 Yearly costs to operate the store, excluding depreciation of store equipment $200,000 Yearly expected revenues—years 1–6 $300,000 Yearly expected revenues—years 7–15 $400,000 1. Prepare a differential analysis as of August 1 presenting the proposed operation of the store for the 15 years (Alternative 1) as compared with investing in U.S. Treasury bonds (Alternative 2). If an amount is zero, enter "0". Differential AnalysisOperate Retail (Alt. 1) or Invest in Bonds (Alt. 2)August 1…On August 1, Rantoul Stores Inc. is considering leasing a building and purchasing the necessary equipment to operate a retail store. Alternatively, the company could use the funds to invest in $900,000 of 3% U.S. Treasury bonds that mature in 15 years. The bonds could be purchased at face value. The following data have been assembled: Revenues/costs Amount Cost of store equipment $900,000 Life of store equipment 15 years Estimated residual value of equipment $45,000 Annual store operating costs less depreciation 200,000 Annual expected revenues in years 1-6 250,000 Annual expected revenues in years 7-15 300,000 Prepare a differential analysis as of August 1 presenting the proposed operation of the store for the 15 years (Alternative 1) as compared with investing in U.S. Treasury bonds (Alternative 2). Based on the results disclosed by the differential analysis, should the proposal be accepted? If the proposal…Blue Co. purchased an equipment on March 1, 2015, made a 50% down payment, and the balance will be paid in five equal installments at March 1 of the next five years. The equipment has a useful life of 15 years, and it was expected to be sold for P35,000 once its useful life ends. On December 31, 2019, the accumulated depreciation on the equipment is P4,495,000. 1.) How much is the cost of the equipment? 2.) How much is depreciation per year? 3.) On December 31, 2019, how much is the carrying value of the equipment? 4.) On December 31, 2019, how much is remaining accounts payable?
