Ambitious Company showed the following schedule of depreciable assets on January 1, 2020. Accumulated depreciation Acquisition date Residual Asset Cost 4,000,000 2,000,000 2,800,000 2,560,000 1,440,000 1,344,000 2018 2017 2017 400,000 200,000 560,000 A В The useful life of each asset is 5 years. The entity takes a full depreciatibn in the year of acquisition and no depreciation in the year of disposition. Asset C was sold for P1,700,000 on June 30, 2020. Asset A is depreciated under the double declining method. 1. What is the depreciation of Asset A for 2020? 1,600,000- b. a. 1,440,000 416,000 576,000 с. d. 2. What is the depreciation of Asset B for 2020 assuming same method in prior years? a. 240,000 b. 480,000 c. 360,000/ d. 400,000 3. What is the gain on sale of Asset C? a. 244,000 b. 464,000 с. 356,000 d. 804,000
Ambitious Company showed the following schedule of depreciable assets on January 1, 2020. Accumulated depreciation Acquisition date Residual Asset Cost 4,000,000 2,000,000 2,800,000 2,560,000 1,440,000 1,344,000 2018 2017 2017 400,000 200,000 560,000 A В The useful life of each asset is 5 years. The entity takes a full depreciatibn in the year of acquisition and no depreciation in the year of disposition. Asset C was sold for P1,700,000 on June 30, 2020. Asset A is depreciated under the double declining method. 1. What is the depreciation of Asset A for 2020? 1,600,000- b. a. 1,440,000 416,000 576,000 с. d. 2. What is the depreciation of Asset B for 2020 assuming same method in prior years? a. 240,000 b. 480,000 c. 360,000/ d. 400,000 3. What is the gain on sale of Asset C? a. 244,000 b. 464,000 с. 356,000 d. 804,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 24CE
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