10. On January 1, 2019, Nobel Corporation acquired machinery at a cost of $1,600,000. Nobel adopted the straight-line method of depreciation for this machine and had been recording depreciation over an estimated life of ten years, with no residual value. At the beginning of 2022, a decision was made to change to the double-declining balance method of depreciation for this machine. The amount that Nobel should record as depreciation expense for 2022 is a. $160,000. b. $204,800. $256,000. d. $163,840. C.

Q: 11. On July 1, 2020, Youth Corporation purchased a machine at a cost of P300,000. This machine was…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Nixon

A: In this question, we have to find out the gain on the sale of the plant by deducting carrying cost…

Q: On January 1, 2021, Mama Company purchased a machine for P2,750,000. The machine was depreciated…

A: Depreciation - Depreciation is computed every year due to wear and tear of the assets, for the…

Q: January 1, 2017, BMB Corporation acquired machinery at a cost of ₱500,000. BMB adopted the…

A: As per IAS 8, Accounting policies, changes in Accounting estimates and errors  A change in method of…

Q: 13 On January 2, 2020, VSG purchased a transportation equipment costing P2,400,000. The new asset…

A: Depreciation expense: Depreciation expense is the reduction in the particular asset due to its use…

Q: On January 1, 2017, Jungkook Company purchased an equipment for P1,970,000. On this date, the…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: On June 30, 2021, Maroon sold for P230,000 a machine acquired in 2018 for P420,000. The accumulated…

A:

Q: On March 2, 2021, HABIBIYUCK bought an equipment costing P1,200,000. It is the Company’s policy to…

A: Depreciation refers to a decline in the value of a fixed asset over its useful life. Now, in a…

Q: On January 1, 2017, RIP Isabel Granada Company purchased a machinery for P600,000, with an estimated…

A: 1. Impairment loss is carrying amount below the recoverable amount.  depreciation calculated based…

Q: On April 1, 2019, the KB Toy Company purchased equipment to be used in its manufacturing process.…

A:

Q: On April 1, 2019, Coronado Industries purchased new machinery for $453000. The machinery has an…

A: The depreciation expense is charged on fixed assets as reduction in value of fixed assets with the…

Q: anuary 1, 2018, Hot Corporation acquired equipment at a cost of ₱1,800,000. Hot adopted the…

A: Depreciation is the decrease in the value of the assets due to their usage. Every asset has certain…

Q: 39. On January 1, 2019, Iver Company purchased equipment for P4,000,000. The equipment has a useful…

A: On jan 1,2019 the cost of the equipment is P4,000,000 and residual value is P400,000 with useful…

Q: Required a. Prepare the journal entry(ies) necessary to record the depreciation expense on the…

A: Depreciation: A charge on the fixed assets of the company that reduces the value of the asset is…

Q: 6. During 2020, Mannix Company determined that machinery being depreciated by the straight-line…

A: Depreciation records the usage of a fixed asset over a period of time and allocates its cost to the…

Q: n January 1, 2019, ABC Company acquired a machine for 4,500,000. The machine has a useful life of 10…

A: A corporation can use the revaluation model to carry a fixed asset at its revalued value. Following…

Q: On January 1, 2017, an entity purchased a machine for P5,280,000 and depreciated it by the straight…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: On January 2, 2022, Milk Tea Company acquired a building costing P6,000,000. Milk Tea Company…

A: Impairment Gain: An asset is said to have suffered an impairment if its value has been permanently…

Q: JAY Inc. decided to revalue its machine on December 31, 2019, and determined that the current…

A: Depreciation: It is the gradual fall in the value of asset due to its normal usage in the production…

Q: On July 1, 2020, Youth Corporation purchased a machine at a cost of P300,000. This machine was…

A: Cost of the machine on July 2020::P3,00,000.. Useful life is::5 years... Depreciation…

Q: On January 1, 2019, Kong Company owned a machinery having a carrying amount of P240,000. The machine…

A: Carrying amount can be defined as the original cost of an asset as reflected in the books of…

Q: • June Corporation purchased equipment on 1/1/20 for $650,000. In 2020 and 2021, June depreciated…

A: Since the useful life and salvage value of asset has been revised, therefore, the remaining book…

Q: On January 1, 2020, Dan Company purchased a new machine for P4,000,000. The new machine has an…

A:

Q: On December 31, 2020, Sardines Company has an item of machinery with a cost of $4,500,000 and an…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: On January 1, 2021, Mama Company purchased a machine for P2,750,000. The machine was depreciated…

A: Solution.      Cost = P2,750,000  Life (N) = 10 years  Sum of years of digits  = N (N + 1) ÷ 2  = 10…

Q: On January 1, 2019, Ivanhoe Corporation acquired machinery at a cost of $1200000. Ivanhoe adopted…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. firm can use…

Q: Faithful Company purchased an equipment on January 2, 2021 for P3,000,000. The equipment had an…

A: DDB rate = 2/Useful life = 2/5 = 40%   Depreciation expense for 2021 = P3,000,000 x 40% = P1,200,000…

Q: On January 1, 2019, Pharoah Corporation acquired equipment at a cost of $768000. Pharoah adopted the…

A: First we need to calculate carrying amount of equipment at the beginning of 2021 after deduction of…

Q: On January 1, 2017, NBM Corporation acquired machinery at a cost of ₱500,000. BMB adopted the…

A: As per IAS 8, Accounting policies, changes in Accounting estimates and errors  A change in method of…

Q: Prepare the journal entry necessary to record the depreciation expense on the building in 2021.…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: 19, Ivanhoe Corporation acquired equipment at a cost of $858000. Ivanhoe adopted the…

A: Solution: Sum of years digits = 8+7+6+5+4+3+2+1 = 36 Accumulated Depreciation for 2019, 2020, 2021 =…

Q: Faithful Company purchased an equipment on January 2, 2021 for P3,000,000. The equipment had an…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5 years) x 2 = 40%

Q: At November 1, 2021, the following existed in the records of Lauren Company:Plant and equipment…

A: In this question, we are required to compute the net amount that should appear in Lauren’s statement…

Q: On January 1, 2017, Loko Corporation acquired equipment at a cost of ₱1,800,000. Loko adopted the…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: On March 10, 2022, Bonita Company sells equipment that it purchased for $209,280 on August 20, 2015.…

A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…

Q: On January 1, 2016, LLC Corporation purchased a building and equipment that have the following…

A: The depreciation expense is charged on asset which reduces the value of fixed asset with the passage…

Q: On August 31, 2019, CAMELLIA Company purchased a new machinery for ₱540,000. The machinery has an…

A: A reduction in the value of assets due to usage or passage of time is defined as depreciation. The…

Q: On January 1, 2017, Jace and Naya Corporation acquired equipment at a cost of ₱1,800,000. Jace and…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: n July 1, 2020, Youth Corporation purchased a machine at a cost of P300,000. This machine was…

A: An impairment loss is recorded when there is permanent drop in the value of an asset such that its…

Q: On January 1, 2016, LLC Corporation purchased a building and equipment that have the following…

A: Since you have posted multiple question , we will do the first one for you . In order to get…

Q: On January 1, 2019, Nobel Corporation acquired machinery at a cost of P600,000. Nobel adopted the…

A: Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets = (600000- 0) / 10…

Q: At the beginning of 2019, Robotics Inc. acquired a manufacturing facility for $13.9 million. $10.9…

A: Given that, Cost of the building = $109,00,000 Residual value = $2900000 Useful life of asset = 25…

Q: ABC, Inc. purchased a crane on January 1, 2018, for P205,500. At the time of purchase, the crane was…

A: Under straight line method of recording depreciation, equal amount of depreciation expense is…

Q: Sony Company has decided to sell one of its old machines on December 31, 2019. The machine was…

A: The gain or loss is calculated as the difference between sale value and book value of the assets.

Q: On January 1, 2020, Miller Company purchased a machine for P2,750,000. The machine was depreciated…

A: Working: Total sum of 10 years = 1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9 + 10 = 55 years Sum of Remaining…

Q: On January 1, 2019, Kong Company owned a machinery having a carrying amount of P240,000. The machine…

A: Depreciation means the fall in value of assets because of wear and tear , usage , passage of time or…

Q: On July 1, 2020, New Orleans Corporation purchased equipment at a cost of P340,000. The equipment…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/8 years) x 2 = 25%

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.