What is the Depreciation and Depletion Expense in 2013 and 2014 Citi Company purchased factory equipment on March 10, 2010.The company accountant revealed the following informationregarding this asset: Purchase price-P800,000; Residual value -80,000; Estimated useful life - 8 years.The equipiment was sold on November 30, 2013 for P300,000.Q1 (round off to two decimal places)What amount should Citi record as depreciation expense forthe year ended December 31, 2013 using double-decliningbalance method, assuming the company had the policy ofrecording half year depreciation in the year of acquisition?

Introduction Depreciation means decrease in value of assets due to obsolete and old conditions

Citi Company purchased factory equipment on March 10, 2010. The company `accountant revealed the following information regarding this asset: Purchase price-P800,000; Residual value 80,000; Estimated useful life - 8 years. The equipment was sold on November 30, 2013 for P300,000.

Citi Company purchased factory equipment on March 10, 2010. The company `accountant revealed the following information regarding this asset: Purchase price-P800,000; Residual value 80,000; Estimated useful life - 8 years. The equipment was sold on November 30, 2013 for P300,000.

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

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 3RE: Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not...

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Question

What is the Depreciation and Depletion Expense in 2013 and 2014

Citi Company purchased factory equipment on March 10, 2010.
The company accountant revealed the following information
regarding this asset: Purchase price-P800,000; Residual value -
80,000; Estimated useful life - 8 years.
The equipiment was sold on November 30, 2013 for P300,000.
Q1 (round off to two decimal places)
What amount should Citi record as depreciation expense for
the year ended December 31, 2013 using double-declining
balance method, assuming the company had the policy of
recording half year depreciation in the year of acquisition?

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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