You have been assigned to prepare the schedule of property, plant, and equipment for ABC Corp. on Dec. 31, 2020. In the course of your work, you have assembled the following information: Depreciable Asset AcquisitionDate Cost Residual Value Useful Life (years) Depreciation Method Bldg. A Oct. 1, 2015 4,000,000 - 25 Straight line Bldg. B April 1, 2016 6,000,000 300,000 30 straight line Machinery A Oct. 1, 2015 1,000,000 100,000 10 150% declining balance Machinery B Jan. 1, 2016 900,000 80,000 5 Double declining balance Equipment A Jan. 1, 2016 400,000 40,000 7.5 SYD Equipment B April 1, 2017 190,000 25,000 5 SYD Additional Information: 1. Machinery B is retired from use on October 31, 2020 and sold for P90,000. A replacement machinery was purchased on Nov. 1, 2020 for P980,000. It will be depreciated based on a 5-year estimated useful life and P50,000 estimated residual value using the double declining balance method. 2. On Dec. 31, 2019, it is determined that the estimated remaining life of Machinery A is 4 years and that the revised estimated residual value is P50,000. In addition, the depreciation method is changed to straight line method. The depreciation for the year 2020 of: 23. Machinery A = 113,108 24. Machinery B = 36,640 25. Replacement Machinery for Machinery B = 65,333 26. Building A = 160,000 27. Building B = 190,000 28. Equipment A = 39,000 29. Equipment B = 24,750 Complete the following schedule of PPE on Dec. 31, 2020: In connection with items 23 to 29 Cost Accumulated Depreciation Carrying Amount Bldg. 30. 34. 38. Machinery 31. 35. 39 Equipment 32. 36. 40. Totals 33. 37. 41. NOTE: SUBPARTS NO. 31, 35, 39 ONLY
You have been assigned to prepare the schedule of property, plant, and equipment for ABC Corp. on
Dec. 31, 2020. In the course of your work, you have assembled the following information:
AcquisitionDate | Cost | Residual Value | Useful Life (years) | Depreciation Method | |
Bldg. A | Oct. 1, 2015 | 4,000,000 | - | 25 | Straight line |
Bldg. B | April 1, 2016 | 6,000,000 | 300,000 | 30 | straight line |
Machinery A | Oct. 1, 2015 | 1,000,000 | 100,000 | 10 | 150% declining balance |
Machinery B | Jan. 1, 2016 | 900,000 | 80,000 | 5 | Double declining balance |
Equipment A | Jan. 1, 2016 | 400,000 | 40,000 | 7.5 | SYD |
Equipment B | April 1, 2017 | 190,000 | 25,000 | 5 | SYD |
Additional Information:
1. Machinery B is retired from use on October 31, 2020 and sold for P90,000. A replacement machinery was
purchased on Nov. 1, 2020 for P980,000. It will be depreciated based on a 5-year estimated useful life and
P50,000 estimated residual value using the double declining balance method.
2. On Dec. 31, 2019, it is determined that the estimated remaining life of Machinery A is 4 years and that the
revised estimated residual value is P50,000. In addition, the depreciation method is changed to
method
The depreciation for the year 2020 of:
23. Machinery A = 113,108
24. Machinery B = 36,640
25. Replacement Machinery for Machinery B = 65,333
26. Building A = 160,000
27. Building B = 190,000
28. Equipment A = 39,000
29. Equipment B = 24,750
Complete the following schedule of PPE on Dec. 31, 2020: In connection with items 23 to 29
Cost | Carrying Amount | ||
Bldg. | 30. | 34. | 38. |
Machinery | 31. | 35. | 39 |
Equipment | 32. | 36. | 40. |
Totals | 33. | 37. | 41. |
NOTE: SUBPARTS NO. 31, 35, 39 ONLY
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