Z Company swapped 4,000 shares of ordinary share capital ,P100 par value with Int'l Inc.' equipment. The equipment costs International P1,000,000 when purchased five years ago, and currently has a fair value of P560,000. The equipment has a recorded accumulated depreciation of P550,000 in the books of International. How much is the amount to record for the equipment
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Z Company swapped 4,000 shares of ordinary share capital ,P100 par value with Int'l Inc.' equipment. The equipment costs International P1,000,000 when purchased five years ago, and currently has a fair value of P560,000. The equipment has a recorded
How much is the amount to record for the equipment?
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- 1. Morny Corporation sold equipment to its 80% owned subsidiary, Morrie Corporaiton on January 1, 2020. Morny sold the equipment for P110,000 when its book value was P85,000 and it had a 5-year remaining useful life with no expected salvage value. Separate balance sheets for Morny and Morrie included the following equipment and accumulated depreciation amounts on December 31, 2020:Morny MorrieEquipment P750,000 P300,000Less: Accumulated depreciation (200,000) (50,000)Equipment, net P550,000 P250,000Consolidated amounts for equipment and accumulated depreciation at December 31, 2020, were respectively.a. P1,025,000 and P250,000b. P1,050,000 and P250,000 c. P1,025,000 and P245,000d. P1,045,000 and P245,000 2. Rommel, Inc. acquired a 60% interest in Mikee Company several years ago. During 2020, Mikee sold inventory costing P75,000 to Rommel for P100,000. A…The Siri Company acquired equipment on January 1, 2015 at a cost of P400,000, depreciating it over 8 years with a nil residual value. On January 1, 2018. The Triss Company acquired 100% of Siri and estimated the fair value of the equipment at P230,000 with a remaining life of 5 years. This fair value was not incorporated into Siri’s books and the depreciation expense continued to be calculated by reference to original cost. What adjustments should be made to the depreciation expense for the year and the statement of financial position carrying amount in preparing the consolidated financial statements for the year ended December 31, 2019? DEPRECIATION EXPENSE -decrease by P4,000 ; CARRYING AMOUNT - decreased by P12,000 DEPRECIATION EXPENSE -decreased by P4,000 ; CARRYING AMOUNT - increased by P12,000 DEPRECIATION EXPENSE -increase by P4,000 ; CARRYING AMOUNT - decreased by P12,000 DEPRECIATION EXPENSE…The Siri Company acquired equipment on January 1, 2015 at a cost of P400,000, depreciating it over 8 years with a nil residual value. On January 1, 2018. The Triss Company acquired 100% of Siri and estimated the fair value of the equipment at P230,000 with a remaining life of 5 years. This fair value was not incorporated into Siri’s books and the depreciation expense continued to be calculated by reference to original cost. What adjustments should be made to the depreciation expense for the year and the statement of financial position carrying amount in preparing the consolidated financial statements for the year ended December 31, 2019? a. DEPRECIATION EXPENSE -decrease by P4,000 ; CARRYING AMOUNT - decreased by P12,000 b. DEPRECIATION EXPENSE -increase by P4,000 ; CARRYING AMOUNT - decreased by P12,000 c. DEPRECIATION EXPENSE -decreased by P4,000 ; CARRYING AMOUNT - increased by P12,000 d. DEPRECIATION EXPENSE -increase by P4,000 ; CARRYING AMOUNT - increased by P12,000
- The Siri Company acquired equipment on January 1, 2015 at a cost of P400,000, depreciating it over 8 years with a nil residual value. On January 1, 2018. The Triss Company acquired 100% of Siri and estimated the fair value of the equipment at P230,000 with a remaining life of 5 years. This fair value was not incorporated into Siri's books and the depreciation expense continued to be calculated by reference to original cost. What adjustments should be made to the depreciation expense for the year and the statement of financial position carrying amount in preparing the consolidated financial statements for the year ended December 31, 2019? DEPRECIATION EXPENSE -increase by P4,000 ; CARRYING AMOUNT - increased by P12,000 DEPRECIATION EXPENSE -decrease by P4,000 ; CARRYING AMOUNT - decreased by P12,000 DEPRECIATION EXPENSE -increase by P4,000; CARRYING AMOUNT - decreased by P12,000 DEPRECIATION EXPENSE -decreased by P4,000 ; CARRYING AMOUNT - increased by P12,000AsapThe Siri Company acquired equipment on January 1, 2015 at a cost of P400,000, depreciating it over 8 years with a nil residual value. On January 1, 2018. The Triss Company acquired 100% of Siri and estimated the fair value of the equipment at P230,000 with a remaining life of 5 years. This fair value was not incorporated into Siri's books and the depreciation expense continued to be calculated by reference to original cost. What adjustments should be made to the depreciation expense for the year and the statement of financial position carrying amount in preparing the consolidated financial statements for the year ended December 31, 2019?
- Arca Salvage purchased equipment for $10,000. Arca recorded total depreciation of $8,000 on the equipment. Assume that Arca exchanged the old equipment for new equipment, paying $4,000 cash. The fair market value of the new equipment is $5,000. Journalize Arca's exchange of equipment. Assume this exchange has commercial substance. Let's begin by calculating the gain or loss on the exchange of equipment. (Enter a loss with a minus sign or parentheses.) Market value of assets received Less: Book value of asset exchanged Cash paid Gain or (Loss)Cedric Company recently traded in an older model of equipment for a new model. The old model’s book value was $180,000 (original cost of $400,000 less $220,000 in accumulated depreciation) and its fair value was $170,000. Cedric paid $60,000 to complete the exchange which has commercial substance. Required: Equipment - new ___?___ Accumulated depreciation 220,000 Loss on exchange of assets 10,000 Cash 60,000 Equipment - old 400,000On January 1, 2012, Jungle Company sold a machine to Safari Company for $30,000. The machine had an original cost of $24,000 and accumulated depreciation on the asset was $ 9000 at the time of the sale. The machine has a 5 year remaining life and will be depreciated on a straight line basis with no salvage value. Safari Company is an 80% owned subsidiary of Jungle Company. Required: 1-Explain the adjustments that would have to be made to arrive at consolidated net income for the years 2012 through 2016 as a result of this sale. 2-prepare the elimination that would be required on the Dec 31, 2012 consolidated worksheet as a result of this sale. 3-prepare the entry for Dec 31, 2013, worksheet as a result of this sale.
- Cullumber Corporation owns equipment with a cost of $294900 and accumulated depreciation at December 31 of $152200. It is estimated that the machinery will generate future cash flows of $166600. The machinery has a fair value of $115200. Cullumber should recognize a loss on impairment of O $23900. O $0. O $14400 O $37000.BTS Company has some old equipment that cost P700,000 with an accumulated depreciation of P400,000. The equipment was traded in for a new machine from a dealer company that had a list price of P800,000; however, the new machine could be purchased without trade in for P780,000 cash. BTS Company paid P500,000 cash in the exchange.Determine the following: (1) Initial cost of the newly acquired equipment(2) Gain or loss on exchangeSunflower Ltd acquires a Mixture Machine from Lilly Ltd for the following consideration:Cash$60 000LandIn the books of Sunflower Ltd the land is recorded at its cost of $300 000. It has a fair value of $280 000 due to toxic substance being discovered in the land.Equipment:In the books of Sunflower Ltd the equipment is recorded at a cost of $150000. The equipment has an accumulated depreciation balance of $60000. The fair value of the equipment is $69000Settlement of liabilitySunflower Ltd also settles a liability of Lilly Ltd’s bank loan of $90 000 as part of the Mixture Machine acquisition.Other costsSunflower Ltd also spend $15000 as the installation cost. Insurance costs during transportation was $7500. Freight cost for the machine was $2100. During first year of operation, the company paid $3000 as the maintenance cost for the machine.REQUIRED(a)Calculate the acquisition cost of the Mixture Machine that will be used as the basefor future depreciation charge.(b)Provide the journal…