Annuel maintenance costs related to its machinery, $71,400 would be an expense in the period occured or would be capitalized and depreciated over the useful life of the asset?
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Annuel maintenance costs related to its machinery, $71,400 would be an expense in the period occured or would be capitalized and
Correct Answer: Annual maintenance costs related to its machinery, $71,400 would be accounted for repairs and maintenance expenses in the period in which it occurred.
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- At the end of the expected useful life of a depreciable asset with an estimated 15% residual value, the accumulated depreciation would equal the original cost of the asset under which of the following depreciation methods?The following would affect the net income on the last year of the useful life of a long-lived asset with a related dismantling cost, except a.) Salvage value of the long-lived asset b.) Interest expense on the decommissioning liability c.) Depreciation of the long-lived asset d.) Gain or loss on the settlement of decommissioning liabilityA fixed asset with a cost of $31,304 and accumulated depreciation of $28,173.60 is sold for $5,321.68. What is the amount of the gain or loss on disposal of the fixed asset?
- Machinery that cost $144,000 and on which $120,000 of accumulated depreciation has beenrecorded was disposed of for $36,000 cash. The entry to record this event would include aa. gain of $12,000.b. loss of $12,000.c. credit to the Equipment account for $36,000.d. credit to Accumulated Depreciation for $120,000Determining Fixed Asset's Book Value The balance in the equipment account is $3,900,000, and the balance in the accumulated depreciation—equipment account is $2,106,000. a. What is the book value of the equipment?$_____________ b. Does the balance in the accumulated depreciation account mean that the equipment's loss of value is $2,106,000?_____________________, because depreciation is an allocation of the __________________________of the equipment to the periods benefiting from its use.Depreciationa. is calculated by the department that uses the fixed asset.b. allocates the cost of the asset over its useful life.c. is recorded weekly.d. results in book value approximating fair market value.
- Write CAPITALIZED if the subsequent cost incurred SHALL FORM PART of the carrying amount of the PPE or EXPENSED OUTRIGHT if the subsequent cost incurred SHALL NOT FORM PART of the carrying amount of the PPE. Rearranged the production PPEs in Factory B for P 400,000 to accommodate a newly purchased equipment that will make the production process faster and more efficient. Repaired one of the machineries for P 350,000 as part of factory’s annual examination. Repaired another machinery for P 275,000 to prolong its remaining useful life from five years to seven years. Replaced a significant part of a production equipment for P 900,000. The equipment has an original cost of P 4,000,000 and accumulated depreciation as of date P 1,000,000. The part replaced represented 20% of the carrying amount and it was sold for a very nominal amount.Determining Fixed Asset's Book Value The balance in the equipment account is $3,150,000, and the balance in the accumulated depreciation—equipment account is $2,075,000. a. What is the book value of the equipment?$fill in the blank 1 b. Does the balance in the accumulated depreciation account mean that the equipment's loss of value is $2,075,000? , because depreciation is an allocation of the of the equipment to the periods benefiting from its use.from the following facts,for straight line depreciation what is given cost - $35,000 residual value - $15,000 est useful life - 4 required: cost of equipment at the end of year 2
- If the book value of an asset is $12,500 and the accumulated depreciation is $3,500, the original cost of the asset isA equipment has an original cost and book value of P2,000,000 and P1,550,000 respectively. It has been depreciated over 25% of its life. If the sound value is currently P1,850,000, how much the equipment's replacement cost be?The components of the cost of a major item of equipment are given below.GHSPurchase price 780,000Import duties 117,000VAT (refundable) 78,000Site preparation 30,000Installation costs 28,000Pre-production costs 18,000Initial operating losses before the asset reaches planned performance 50,000Estimated cost of dismantling and removal of the asset, recognized as a provision under IAS 37 Provisions,Contingent Liabilities and Contingent Assets 100,0001,201,000In accordance with IAS 16 Property, Plant and Equipment, what amount should be recognized as the cost of the asset?
