An engineering study performed in 2021 indicated that on January 1, 2021, 7,500,000 tons of limestone were available. What is the depletion for 2021?
Q: 62. Statement of Financial Position 2021 2022 2023 Assets Current Assets Cash and…
A: The domestic corporation tax in the Philippines is 25%. Although if the total assets are less than…
Q: 12/31/17 12/21/18 Cost incurred to date ? 4,900,000 Estimated cost to complete 14,200,000 9,000,000…
A: Under percentage of completion method the revenue is recognised over the life of the construction…
Q: 3. A project requires an initial investment of $1,000,000 and generates annual income of $300,000…
A: Depreciation Accounting is the method of debiting the cost of an asset and crediting it to a…
Q: The following data were taken from the Statement of Cash Flows of Department JKL for the year ended…
A: Cash flows from operating activities: It is a section of the Statement of cash flow that explains…
Q: vanhoe Variety Store unes the LIFO retal inventory method. Information relating to the computation…
A: Inventory is the current asset reported on the balance sheet of the company. It is used in the…
Q: Questions 20 to 23 are based on the following information: On January 1, 2016, Telespace Inc. grants…
A: calculation of deferred tax expenses are as follows
Q: A company's defined benefit pension plan had a projected benefit obligation (PBO) of $350,000 on…
A: Introduction: A projected benefit obligation (PBO) is the expected present value of an employee's…
Q: AA and BB are partners engaged in a manufacturing business. Transactions affecting the partners’…
A: A partnership capital account is a distinct account that shows the equity in a partnership that is…
Q: the amount that should be reported by Lucas Corporation as the lease liability on its December 31,…
A: Computation of Lease Liability at the commencement of the lease: Year ending Lease…
Q: , taxes OMR ('000) 3,250 Share Capital 17,750 Statutory Reserves 38,750 Profit (previous year) 2,400…
A: Financial Statements: The treatments of all the transactions are done in journal records and then…
Q: 1.2.Choose TRUE or FALSE? Give short explaination? a. In marginal costing method, factory rent is…
A: In Marginal costing method, factory rent is absorbed into cost of production: FALSE Justification:…
Q: Western Foods purchased a 4,000,000 life insurance policy on the company president. The annual…
A: the life insurance expense for 2020= 96000-7000-1500 =$87,500
Q: odic inventory system. One of the company’s products is a special equipment for the oil drilling…
A: First in first out refers to the inventory method under which the inventory purchased first is old…
Q: REQUIRED: What is the deferred tax balance by the end of 2020?
A: Deferred tax refers to the tax difference as per the book profits and taxable income. This tax…
Q: The depreciation for 2022 and 2021 was P550,000 and P500,000, respectively. What amount was debited…
A: Depreciation refers to the reduction in the value of asset due to its normal use and tear and wear.…
Q: 4. For the year ended December 31, 2008, Carter would recognize gross profit from contract # 3814 in…
A: Under percentage of completion method revenue is calculated on the basis of the percentage of cost…
Q: Chadwick Enterprises, Inc., operates several restaurants throughout the Midwest. Three of its…
A: Assets are the future benefit of the company that would have to be sacrificed in order to pay off…
Q: Beta Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/20 and…
A: Understatement of expense will increase net income for that year. Overstated expense will decrease…
Q: Mark Company quarries limestone, crushes it and sells it to be used in road building. Mark paid…
A: Depletion is a non-cash expense which is recorded in the books to reduce the cost value of assets.
Q: CLASS ACTIVITY:CASE PROBLEM The Overland Company wants to develop a cost estimating equation for its…
A: The high low method is used to separate the fixed and variable costs from the mixed costs of the…
Q: What amount should be
A: Shareholders also invest money in the company and in return they become the owners in proportion to…
Q: Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per…
A: The contribution margin is calculated by deducting the variable cost from the sales revenues of the…
Q: What are the Alternative Courses of Action to deal with the problems that needs to be identify,…
A:
Q: or the year ended December 31, 2020, Tam's records total franchise revenue in an amount of
A: Revenue to be recognised is equal to = initial amount on signing of contract + yearly revenue +…
Q: On January 1, 2021, Robin Company received a grant of P1,500,000 from the government to subsidize…
A: Solution This question relates to standard accounting for government grants Whenever the grant is…
Q: Following information is given below prepare the statement of profit or loss: Capital at the end of…
A: Profit and loss (P&L) statements are financial statements that summarize the sales,…
Q: How much is the contributions receivable to be presented in the statement of financial position of…
A: solution concept Whenever there are pledges made by the contributor , the estimation relating to its…
Q: 19. A and B owned a home together as joint tenants. A died and then, two months later, Creditor…
A: Joint tenancy is an agreement involving two or more individuals who agree to co-own a property.
Q: dividend earned should be appear in bank reconciliation in: The following information for Dana…
A: Dividend has been the balance per bank statement but not yet to the balance per cash book.
Q: Pampie Company reported in the income statement for the current year pretax income of Php400,000.…
A: Tax expense is the amount of tax that the entity has paid on its taxable income.
Q: a. How much should the copy right be initially recognized?
A: the legal cost that company paid $15 million for copyrights of that singer's recordings option (a).…
Q: On January 1, 2018, Allgood Company purchased equipment and signed a six =year mortgage note for…
A: For calculating interest expense, we will need to make amortization schedule of loan over a period…
Q: contributed P28,000 in cash and office equipment which cost P16,000 with a fair market value of…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: George, Andrea and Oscar have equities in a partnership as follows: George 500,000 Andrea 800,000…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Al Kawthar Company has oil and gas properties located only in the United States. Data for Al Kawthar…
A: Equivalent Units- Equivalent units are measures of how much work a manufacturer does. Simply put,…
Q: discuss the identification and accounting treatments of adjusting and non-adjusting events
A: International Accounting Standard (IAS) 10, Events after the Reporting Period, prescribes the…
Q: what is financial market? Explain its functions.
A: Financial markets are the marketplaces where financial instruments, securities, and derivatives are…
Q: On December 31, 2022, Day Company leased a new machine from Parr with the following pertinen…
A: Lease liability is the obligation of the person who has taken an asset on lease.
Q: THE VEHICLE HAS A USEFUL LIFE OF 8 YEARS AND SALVAGE VALUE OF 40,000. PREPARE THE ADJUSTING…
A: Equipment Vehicle Purchase Cost 3,66,000 7,50,000 Less Salvage Value…
Q: How much is the total net cash flow? O P430.000 O P270.000 O P620.000 O P695,000
A: Total net cash flow refers to the net cash generated by the business during the period from its…
Q: ompany and Albert Company agreed to exchange tractor trailers. Information relating to these assets…
A: The asset is considered as something that an investor buys with an intention of making income from…
Q: 2. A man invested P10,000 in 2 years earning an interest of P1,600. What was the interest rate…
A: Simple interest is the interest charged on the amount of investment using a flat rate.
Q: On January 1, 2023, Legis Company issued 10-year, P200,000 face value, 6% bonds at par (payable…
A: The Entry was Passed on Date Particular Debit Credit January 1 2023 Cash and Bank A/c…
Q: 1, when is the $3,00
A: The Interest amount is shown as, = (face Value - amount received = 3000 - 2869.11 = $130.89
Q: How much is the contract asset (liability) as of December 31, 2022 using View 1 of the PIC?
A: Answer
Q: how much is the non-controlling interest in net assets as of December 31, 2022?
A: P Company is the holding company of S company. P company holds 80% shares in S company. The shares…
Q: PROCESS 1- ACTIVITY IWAN Company started its operations for the year 2022 in the month of May. The…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: In the separate financial statement of the parent company, which of the following statements…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: The following are the composition of the total gross income of ABC Corp. a domestic corporation…
A: MCIT is also written as minimum corporate income tax. Given that, Gross income from operations =…
Q: 18. Sam conveyed a farm to Sue for her life and then upon her death to Ingrid. Sue dies and her…
A: As Sue have not her own farm, it was conveyed by sam for her life.. Legal heirs of Sue entitaled on…
2. Mark Company
Step by step
Solved in 2 steps
- Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.
- Underwoods Miners recently purchased the rights to a diamond mine. It is estimated that there are two million tons of ore within the mine. Underwoods paid $46,000,000 for the rights and expects to harvest the ore over the next fifteen years. The following is the expected extraction for the next five years. Year 1: 50,000 tons Year 2: 900,000 tons Year 3: 400,000 tons Year 4: 210,000 tons Year 5: 150,000 tons Calculate the depletion expense for the next five years and create the journal entry for year one.Urquhart Global purchases a building to house its administrative offices for $500,000. The best estimate of the salvage value at the time of purchase was $45,000, and it is expected to be used for forty years. Urquhart uses the straight-line depreciation method for all buildings. After ten years of recording depreciation, Urquhart determines that the building will be useful for a total of fifty years instead of forty. Calculate annual depreciation expense for the first ten years. Determine the depreciation expense for the final forty years of the assets life, and create the journal entry for year eleven.Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?
- Gimli Miners recently purchased the rights to a diamond mine. It is estimated that there are one million tons of ore within the mine. Gimli paid $23,100,000 for the rights and expects to harvest the ore over the next ten years. The following is the expected extraction for the next five years. Year 1: 50,000 tons Year 2: 90,000 tons Year 3: 100,000 tons Year 4: 110,000 tons Year 5: 130,000 tons Calculate the depletion expense for the next five years, and create the journal entry for year one.Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. Dunedin buys equipment frequently and wants to print a depreciation schedule for each assets life. Review the worksheet called DEPREC that follows these requirements. Since some assets acquired are depreciated by straight-line, others by units of production, and others by double-declining balance, DEPREC shows all three methods. You are to use this worksheet to prepare depreciation schedules for the new machine.Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.
- Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used for deliveries, has the following characteristics: Estimated life: 5 years Estimated residual value: 3,000 Depreciation method for financial statements: straight-line method Depreciation for income tax purposes: MACRS (3-year life) From 2019 through 2023, each year, Hunter had sales of 100,000, cost of goods sold of 60,000, and operating expenses (excluding depreciation) of 15,000. The truck was disposed of on December 31, 2023, for 2,000. Required: 1. Prepare an income statement for financial reporting through pretax accounting income for each of the 5 years, 2019 through 2023. 2. Prepare, instead, an income statement for income tax purposes through taxable income for each of the 5 years, 2019 through 2023. 3. Compare the total income for all 5 years under Requirements 1 and 2.On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?