Chapter 11, Problem 11.8E

Record the entry for additional depreciation expense on revaluation of equipment due to conversion from U.S. GAAP to IFRS. Note: Enter debits before credits.           Date Account Title Debit Credit 12/31/2021

9. Create a PivotTable and complete the following fixed asset schedule. Future Electronics will include the schedule in the notes to its financial statements for fiscal 2020. (Express every number as a postive number.) Cost At January 1, 2020 Additions Disposal At December 31, 2020 Accumulated Depreciation At January 1, 2020 Depreciation expense Disposal At December 31, 2020 Carrying Amount At January 1, 2020 At December 31, 2020 Buildings 15,316,200 5,888,910 0 21,205,110 465,268 0 465,268 14,850,932 Equipment 4,457,785 1,601,510 0 6,059,295 798,879 0 798,879 3,658,906 Furniture 18,967,224 14,369,270 0 33,336,494 3,421,627 0 3,421,627 15,545,597 Land 9,872,050 2,361,350 0 12,233,400 0 0 0 9,872,050 Land Improvements 7,820,640 2,041,930 0 9,862,570 1,049,947 0 1,049,947 6,770,693 Total 56,433,899 26,262,970 0 82,696,869 5,735,721 0 0 5,735,721 50,698,178 0

You obtain the following information pertaining to Annabelle Co.'s property, plant, and equipment for 2022 in connection with your audit of the company's financial statements. Audited balances at December 31, 2021: Debit Credit P 3,750,000 Land Buildings Accumulated depreciation - Buildings Machinery and equipment Accumulated depreciation - Machinery and Equipment Delivery Equipment Accumulated Depreciation - Delivery Equipment 30,000,000 P 6,577,500 22,500,000 6,250,000 2,875,000 2,115,000 Depreciation Data: Buildings Machinery and Equipment Delivery Equipment Leasehold Improvements Depreciation Method 150% declining - balance Straight-line Sum-of-the-years'-digits Straight-line Useful Life 25 years 10 years 4 years Transaction during 2022 and other information are as follows: a) On January 2, 2022, Annabelle purchased a new truck for P500,000 cash and traded-in a 2-year- old truck with a cost of P450,000 and a book value of P135,000. The new truck has a cash price of P600,000; the…

Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2020. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2020: Asset Office furniture Machinery Cost $ 260,000 1,582,000 62,000 Used delivery truck* *Not considered a luxury automobile. Date Placed in Service 02/03/2020 07/22/2020 08/17/2020 During 2020, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2021 to increase its production capacity. These are the assets acquired during 2021: Asset Computers and information system Luxury autot Assembly equipment Storage building †Used 100% for business purposes. Karane generated taxable income in 2021 of $1,760,000 for purposes of computing the §179 expense limitation. (Use MACRS Table 1, Table 2, Table 3, Table 4, Table 5, and Exhibit 10-10.) (Leave no answer blank. Enter zero if applicable. Input all the values as…

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PAS 16 requires that revaluation surplus resulting from initial revaluation property, plant and equipment should be treated in one of the following ways. Which of the four options mirrors the requirements of PAS 16? a. Released to the income statement an amount equal to the difference between the depreciation calculated on historical cost vis-à-vis revalued amount.  b. Debited to the class of property, plant and equipment that is being revalued and credited to a reserve captioned “revaluation surplus” which is presented under “equity”.  c. Deducted from current assets and added to the property, plant, and equipment.  d. Credited to retained earnings as this is an unrealized gain.

Demonstrate how the MACRS depreciation percentages are calculated by theIRS using the half-year convention?

Sheridan Company purchased a new plant asset on April 1, 2025, at a cost of $732,000. It was estimated to have a service life of 20 years and a salvage value of $60,000. Sheridan' accounting period is the calendar year.

Calculate depreciation and fill out the form 4562 for 2022 year based on the following information: Depreciable assets: Recovery Prior Description Placed in Service Cost Method Convention Period Depreciation $32,963 MACRS/ 01/01/2020 $85,000 HY 7 200DB 01/15/2021 $13,930 HY 7 $1,991 04/15/20XX $1,900 7 Tools Equipment Sprayer MACRS/ 200DB MACRS/ 200DB HY Prior AMT Depreciation $32,963 $1,492 The S corporation has elected not to take the Section 179 deduction for the full amount of the cost of the sprayer or bonus depreciation.