Answered: 1.)Equipment with a cost of P450,000…

Name: 1.)Equipment with a cost of P450,000 has an estimated salvage value of
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Description: 1.)Equipment with a cost of P450,000 has an estimated salvage value of P30,000 and an estimated life of 4 years or 10,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during w

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE

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1.)Equipment with a cost of P450,000 has an estimated salvage value of P30,000 and an estimated life of 4 years or 10,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 2,700 hours? A. P112,500 B. P105,000 C. P113,400 D. P108,750 2. On June 30, 2016, a fire in Jeremy Company's plant caused the total loss of a production machine. The machine was being depreciated at P20,000 annually. And had a carrying amount of P160,000 on December 31, 2015. On the date of the fire, the fair value of the machine was P220,000 and Jeremy received insurance proceeds of P200,000 in October 2016. In its income statement for the year ended December 31, 2016, what amount should Jeremy recognize as a gain or loss on disposition? Answer:

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