XYZ bought an equipment on January 1, 2014 at a cost of $2,200,000 including an estimated residual value of $200,000 and twenty (20) years estimated useful life. The fair value of the equipment on December 31, 2016 is $2,000,000, and revised residual value of $300,000. If there is a need to gross up, round off percentage to whole number and to nearest dollar. Required: 1. Revaluation surplus to be recognized on the year of revaluation Carrying amount of the equipment on December 31, 2017 2.

XYZ bought an equipment on January 1, 2014 at a cost of $2,200,000 including an estimated residual value of $200,000 and twenty (20) years estimated useful life. The fair value of the equipment on December 31, 2016 is $2,000,000, and revised residual value of $300,000. If there is a need to gross up, round off percentage to whole number and to nearest dollar. Required: 1. Revaluation surplus to be recognized on the year of revaluation Carrying amount of the equipment on December 31, 2017 2.

Name: XYZ bought an equipment on January 1, 2014 at acost of $2,200,000 inc
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: XYZ bought an equipment on January 1, 2014 at acost of $2,200,000 including an estimated residualvalue of $200,000 and twenty (20) yearsestimated useful life. The fair value of theequipment on December 31, 2016 is $2,000,000,and revised residual val

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

quipment with an estimated residual value at acquisition of $15,000 was sold on December 31, 2013, for $20,000 cash. The following data were available at the time of sale: Acquisition cost $100,000 Accumulated depreciation on December 31, 2013, after adjustment 85,000 When this transaction is recorded, it should include a a. Credit of $5,000 to the Gain on Disposal account. b. Credit of $20,000 to the Equipment account. c. Debit of $20,000 to the Accumulated Depreciation account. d. Debit of $80,000 to the Loss on Disposal account.
3. ABC Company has equipment acquired on January 1, 2018, at a cost of P2,200,000 with an estimated residual value of P200,000 and 20 years estimated useful life. On December 31, 2021, the replacement cost of the equipment is P2,400,000. Two years after, the depreciated replacement cost has declined to 1,470,000. Round off percentage to a whole number and gross-up value to the nearest peso if you are required to gross up. Immediately after revaluation, the revaluation surplus has a balance of?
Land Acquisition date 1 Jan 2016 Cost Price (RM) 500,000 Residual Value (RM) Useful Life indefinite Basis of Measurement Revaluation model Depreciation method Not applicable 31 December 2020 fair value of the land is RM480,000. It was revalued to RM530,000 last year. Annual revaluation is necessary. Balance in the revaluation reserve account on 1 January 2020 was RM40,000 (credit). Accounting year end 31 December every year Determine the value of the land that should appear in the Statement of Financial Position as at 31 December 2020 Select one: a. RM570.000 O b. RM490,000 Oc. RM530.000 d. RM480.000
On May 22, 2020, Colossal Corporation purchased machinery for $80,000. The useful life of this machinery is estimated at 10 years, with a $10,000 residual value. (i). Assume that Colossal uses straight-line depreciation and the half-year convention. Depreciation expense on this machinery will be: Select one: O a. $4,000 in 2020 and $8,000 in 2021 O b. $3,500 in 2020 and $7,000 in 2021 O c. $8,000 in 2020 and $8,000 in 2021 d. $7,000 in 2020 and $7,000 in 2021
Machinery purchased for $77,000 by Concord Corp. on January 1, 2015, was originally estimated to have an 8-year useful life with a residual value of $5,000. Depreciation has been entered for five years on this basis. In 2020, it is determined that the total estimated useful life (including 2020) should have been 10 years, with a residual value of $6,000 at the end of that time. Assume straight-line depreciation and that Concord Corp. uses IFRS for financial statement purposes. Prepare the entry that is required to correct the prior years' depreciation, if any. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Account Titles and Explanation Prepare the entry to record depreciation for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is…
Navigation Inc. acquired an equipment on January 1, 2014 at a cost of $2,200,000 including an estimated residual value of $200,000 and twenty (20) years estimated useful life. The replacement cost of the equipment is $2,400,000 on December 30, 2017. The depreciated replacement cost declined to $1,470,000 after two years. If there is a need to gross up, round off percentage to whole number and to nearest dollar. Questions: 1. What is the carrying amount of the equipment on December 31, 2020?2. What is the balance of the revaluation surplus immediately after revaluation?
Required information [The following information applies to the questions displayed below.] On January 1, 2024, the Allegheny Corporation purchased equipment for $162,000. The estimated service life of the equipment is 10 years and the estimated residual value is $8,000. The equipment is expected to produce 350,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. 2. Double-declining-balance. Formula Amount for 2024 Amount for 2025 Double-Declining-Balance Method X X X = Depreciation Expense % = % =
XYZ bought an equipment on January 1, 2014 at a cost of $2,200,000 including an estimated residual value of $200,000 and twenty (20) years estimated useful life. The fair value of the equipment on December 31, 2016 is $2,000,000, and revised residual value of $300,000. If there is a need to gross up, round off percentage to whole number and to nearest dollar. Required: 1. Revaluation surplus to be recognized on the year of revaluation 2. Carrying amount of the equipment on December 31, 2017
how much is the revaluation deficit/impairment loss to be recognized on the income statement as of dec. 31, 2023
Suppose that a truck is purchased by a company at a cost of 150.000 TL for production purposes on 16 June 2019. The straight-line depreciation rate is 10%, but the company uses accelerated method of depreciation. What would be the amount allocated to the "Idle Time Expenses and Losses" account on 30 June 2019? a) 12.500 b) 12.750 c) 13.500 d) 13.750
Rhone-Metro Industries manufactures equipment that is sold or leased. On December 31, 2024, Rhone-Metro leased equipment to Western Soya Company for a four-year period ending December 31, 2028, at which time possession of the leased asset will revert back to Rhone-Metro. ● ● The equipment cost $550,000 to manufacture and has an expected useful life of six years. Its normal sales price is $607,484. The expected residual value of $25,000 on December 31, 2028, is not guaranteed. Equal payments under the lease are $163,000 (including $3,000 maintenance costs) and are due on December 31 of each year. The first payment was made on December 31, 2024. Western Soya's incremental borrowing rate is 8%. Western Soya knows the interest rate implicit in the lease payments is 6%. Both companies use straight-line depreciation or amortization. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) ● Required: 1. Show how Rhone-Metro…
Assume that Sohar traders purchased a Truck for OMR 15000 on 31st December 2015. The expected salvage value after its five years useful life is OMR 1000. Calculate the amount of depreciation to be charged on truck for the year 2020 by following Diminishing-Balance Method. a. OMR 444 b. None of the given options c. OMR 777.6 d. OMR1296