7. Tonyo Company uses the composite method of depreciation and has a composite rate of 25%.During 20x1, it sold assets with an original cost of P100,000 (residual value of P20,000) forP80,000 and acquired P60,000 worth of new assets (residual value of P10,000). The originalgroup of assets had the following characteristics:Total CostP250,00030,000Total Residual ValueThe above original group includes the assets sold in 20x8 but not the assets purchased in 20x8.How much is the depreciation in 20x8?Use the following information for the next four items:Page 15Light Company bought a machine for P300,000 on January 1, 20x8. The machine's useful life is 10years and it is estimated to have a zero residual value and is depreciated using the straight-linemethod.The revalued amount of the machine is as follows:December 3120x820x92x10Fair values of the machineP 360,000335,000320,000The enacted tax rate was 30% for each year8. The revaluation surplus in the equity section of Light Company's December 31, 20x8 statementof financial position is9. The amount of depreciation expense to be recognized in 20x9 is .

Depreciation = Cost - Residual Value / No of Useful life of an Asset.

7. Tonyo Company uses the composite method of depreciation and has a composite rate of 25%. During 20x1, it sold assets with an original cost of P100,000 (residual value of P20,000) for P80,000 and acquired P60,000 worth of new assets (residual value of P10,000). The original group of assets had the following characteristics: Total Cost Total Residual Value P250,000 30,000 The above original group includes the assets sold in 20x8 but not the assets purchased in 20x8. How much is the depreciation in 20x8?

7. Tonyo Company uses the composite method of depreciation and has a composite rate of 25%. During 20x1, it sold assets with an original cost of P100,000 (residual value of P20,000) for P80,000 and acquired P60,000 worth of new assets (residual value of P10,000). The original group of assets had the following characteristics: Total Cost Total Residual Value P250,000 30,000 The above original group includes the assets sold in 20x8 but not the assets purchased in 20x8. How much is the depreciation in 20x8?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 7RE: Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of...

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