An old cooler with a recorded cost of P150,000 and accumulated depreciation of P140,000 was sold for P4,000.  A new cooler with marked price of P200,00 was purchased on February 10, 2021.  Freight charge of P3,000 and installation cost of P6,000 were paid.  How much is the gain (-loss) from the sale of the old coole

Q: Mandu Corp. acquired a machine at a total cost of P5,200,000. The estimated life of the machine is 8…

A: Depreciation per hour = (Cost of the assets - Salvage value) / Total estimated operating machine…

Q: Wildhorse Corporation purchased an asset at a cost of $60,000 on March 1, 2020. The asset has a…

A: Depreciation refers to the decline in the value of an asset over a due course of time because of the…

Q: Mazaya Company purchased equipment on January 1, 2010, at a total invoice cost ofR.O. 400,000. The…

A: Annual depreciation = ( cost of the assets - residual value) / Life of the assets = (RO 400,000 - RO…

Q: ARON Corp. acquired a machine at a total cost of P5,200,000. The estimated life of the machine is 8…

A: Depreciation per hour = (Cost of the assets - Salvage value) / Total estimated operating machine…

Q: On January 1, 2018, Alan Company purchased an equipment for P8,000,000. The equipment is depreciated…

A: Gain is the amount of money earned on the sale of assets.

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

A:

Q: The Fisher Company purchased a machine on October 1, 2018, for $18,000. At the time of acquisition,…

A: Depreciable cost=Cost-Salvage value=$18,000-$5,000=$13,000

Q: Jamela Company acquired a welding machine with an invoice price of P5,000,000 subject to a cash…

A: As per IAS 16 , Property plant and equipment,  Cost of property plant and equipment consists of…

Q: The Hong Company purchased for P240,000 cash on July 1, 2014 a machine with an estimated useful life…

A: Useful life (In Months) = 10 years  x 12 months = 120 months Monthly Depreciation Expense = ( Cost…

Q: On July 1, 2015, Karen Company purchased equipment for $325,000; the estimated useful life was 10…

A: Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets = ($325000 - $40000)…

Q: Podey Company has a machine that originally cost $20,000, has accumulated depreciation of $14,000 at…

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…

Q: On January 1, 2024, Birdman Company purchased for P240,000 a machine with a useful life of 10 years…

A: A change in depreciation method is a change in method that is not distinguishable from a change in…

Q: On January 1, 2011, RIGHTEOUS MORAL Co. acquired a piece of equipment for ₱2,000,000. The equipment…

A: Discount rate = 10% Revised useful life = 4 years Annual cash flows from revenues = P200,000 Present…

Q: You purchased a new molding machine for $155,000 by trading in a similarmachine that had a book…

A: Calculation of cost basis of new machine: Answer: Cost basis of new machine for depreciation purpose…

Q: On January 1, 2017, Global Manufacturing purchased a machine for $540,000 that it expected to have a…

A: disposal of assets:- It  involves eliminating assets from accounting records. Loss on sale. Debit…

Q: Dewey Corporation purchased a machine for $340,000 on January 1, 2012. The machine had an…

A: Depreciation is considered as an expense charge on the value of the Asset. The most common method…

Q: Quer Company purchased two machines for P250,000 each on January 2, 2020. The machines were put into…

A: Expense:- Expense is the use of an asset or service to generate revenue. Expense is the reduction in…

Q: Rigley Industries sells a plant asset which originally cost $240,000 for $90,000 on December 31,…

A: SOLUTION-   GAIN OR LOSS ON DISPOSAL = ORIGINAL COST -ACCUMULATED DEPRECIATION- SALES VALUE.

Q: Liquior Company has an equipment costing P700,000 with an estimated residual value of P70,000 and an…

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

Q: On December 31, 2020, RJ Co. had delivery equipment in the total cost of P1,000,000.00 and…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: deductible loss from permanent retirement?

A: Deductible loss = Cost - Accumulated depreciation - Salvage value

Q: Fenner Co. purchased a lathe machine for $72,000 on January 5, 2013. This (old) lathe had an…

A: Exchange of asset with no commercial substance is a condition in which the transfer or exchange of…

Q: On January 2, 2017, RM Company purchased equipment costing P1,500,000.  The estimated useful life of…

A: Depreciation per annum of old machinery = (P1500000-P50000)/8. = P181250 per annum Depreciation for…

Q: Oslo Corporation has a vehicle that cost P850,000 on October 1, 2015. This old vehicle had an…

A: Annual Depreciation=Cost of Vehicle-Residual ValueEstimated Life=850,0000-50,00010=80,000

Q: In June 2023, Plane Company exchanged an old packaging machine, which had a cost ofP1,200,000 and…

A: Cost of old packaging machine= P1,200,000  Depreciation= 50% Market value of the old packaging…

Q: An old cooler with a recorded cost of P150,000 and accumulated depreciation of P140,000 was sold for…

A: Cost of the assets involves the cost of acquisition and installation costs in terms of monetary…

Q: In October, Dean Company exchanged an old packing machine costing P240,000 and 50% depreciated, for…

A: Whenever a property is sold more than its carrying amount or value, a profit or gain on the sale of…

Q: Haemul Pajeon Company purchased a machine on January 2, 2018 for P500,000. The machine has an…

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

Q: The company estimates that the useful life of the machine is 4 years with a Tk. 5,000 salvage value…

A: The calculation of amount of annual depreciation is shown hereunder : Cash price of machine Tk…

Q: BTS Company purchased machinery for P250,000 on July 1, 2018. Freight and installation costs…

A: Solution...   Total cost of machinery  = Cost + installation  = P250,000 + P18,000  = P268,000…

Q: On December 31, 2020, RJ Co. had a 5-year old building with a cost of P10,000,000.00 and accumulated…

A: Depreciation under Straight line method = (Cost - Salvage Value) / estimated useful life  Cost of…

Q: Waterway Industries purchased machinery on January 2, 2015, for $860000. The straight-line method is…

A: Determine the book value at the end of 2020.

Q: amela Company acquired a welding machine on account with an invoice price of P5,000,000 subject to a…

A: Depreciation under the Straight Line method is computed under the following method: Depreciation =…

Q: Jamela Company acquired a welding machine on account with an invoice price of P5,000,000 subject to…

A: Cost of asset includes the invoice price less any cash discount and all other costs which are…

Q: The Nickle Company purchased an asset for P17,000 on January 2, 2021. The asset has an expected…

A: (1). N Company purchased as asset for $17,000 on January 2, 2021. The asset has an expected residual…

Q: Equipment was purchased for $86200 on January 1, 2021. Freight charges amounted to $2800 and there…

A: Cost of asset=Purchase price+Freight+Installation=$86,200+$2,800+$12,000=$101,000

Q: The BAKAL Company purchased a machine on November 1, 2011, for P148,000.  At the time of…

A: Straight line method of Depreciation The purpose calculating the depreciation is to identified the…

Q: Haystack company purchased a machine on January 1, 2015 for $48,000. The company estimates that the…

A: This question deals with the calculation selling price of machine with $3,500 gain. We first need to…

Q: Arabs Company purchased a machine for P650,000 on January 1, 2016. The estimated salvage value of…

A: Cost of machine = P 650,000 Salvage value = P 46,500 Life = 10 Years Used period (From Jan 1 2016 to…

Q: gain or loss from this sale

A: Annual depreciation under straight line method = (Cost - Residual value)/Estimated life in years…

Q: On January 1, 2015, Jersey Corporation purchased for $800,000, equipment having a useful life of ten…

A: Assets are the resources of the business which it has acquired for business purpose. Assets can be…

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: Cheyenne Corp. purchased a delivery truck for $42,000 on January 1, 2022. The truck has an expected…

A: Depreciation expense refers to the amount needs to be deducted from the gross profit of a company in…

Q: Equipment was purchased for $83700 on January 1, 2021. Freight charges amounted to $4000 and there…

A: Accumulated Depreciation: It is the total of the depreciation expense written off each year since…

Q: On January 1, 2021, Capiz Company purchased factory equipment for P8,000,000. Estimated salvage…

A: Double declining balance method: It is the method of charging depreciation where the depreciation is…

Q: Equipment was purchased for $150,000 on July 1, 2020. Freight charges amounted to $7,000 and there…

A: Since the asset has been put to use on Oct 1, so for 2020, depreciation for only 3 months needs to…

Q: An old cooler with a recorded cost of P150,000 and accumulated depreciation of P140,000 was sold for…

A: Book value of cooler on date of sale=Recorded cost -Accumulated depreciation=P 150,000 -P…

Q: Equipment was purchased for $86200 on January 1, 2021. Freight charges amounted to $2800 and there…

A: First we need to find capitalized cost of asset  Then depreciable value of asset is to be found…

Q: Bonita Industries purchased a new machine on May 1, 2012 for $561600. At the time of acquisition,…

A: Calculate the loss recognized from the sale of machine:

Q: On December 31, 2020, Listach Inc. sold a used industrial crane for $600,000 cash. The original cost…

A: Formula: Gain or loss on sale of Asset = Sale value - Book value

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.