Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an expected useful life of 8 years. Straight line depreciation method is in place for similar items. On January 1, 2024, the asset is appraised as having a sound value ofP4,500,000. OnJanuary1,2027, theasset hada recoverable value ofP1,375,000. 64) How much is credited to the revaluation surplus as a result of the revaluation in 2024? A. 1,500,000B. 1,250,000 C. 1,000,000 D.750,000 65) What is the correct depreciation to be recognized in 2024? A. 750,000 B. 1,000,000 C. 1,250,000 D. 1,500,000 66) How much is the loss on impairment should be recognized on January 1, 2027?

Q: Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an…

A: Depreciation as per straight line method =  (Cost - salvage value) /useful life

Q: On July 1, 2022, Proton, Inc. sells equipment for P44,000. The equipment originally cost P120,000,…

A: Given: - Cost= 120,000 Accumulated Depreciation=70,000 Salvage value=20,000 Useful life= 5 years

Q: Sunland Company purchased a machine on July 1, 2020, for $970000. The machine has an estimated…

A: The rate of depreciation under 150% declining balance method is calculated by dividing 150 by the…

Q: On January 1, 2021, Mama Company purchased a machine for P2,750,000. The machine was depreciated…

A: Depreciation - Depreciation is computed every year due to wear and tear of the assets, for 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 3, 2019, Soju Co. purchased machinery. The machinery has an estimated useful life of…

A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…

Q: On January 1, 20X4, XYZ Company purchased a truck for $120,000. The truck is expected to have an…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: On January 1, 2021, PANCHITAS CAFÉ purchased equipment for $180,000. The equipment had an estimated…

A: SLM depreciation = (cost - salvage value)/life = (180000-40000)/10 = 14000 SLM rate = SLM…

Q: Steele Company purchased on January 1, 2020, a new machine for $2,100,000. The new machine has an…

A: Sum-of-the-years'-digits = 1+2+3+4+5+6+7+8+9 = 45 years

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: On January 1, 2018, an entity purchased a machine for P7,200,000 and depreciated it by the straight…

A: Since there are multiple questions, we will solve first for you. To get the remaining questions…

Q: On January 1, 2018, an entity purchased a machine for P7,200,000 and depreciated it by the…

A: Annual Depreciation = (Cost of the machine - Salvage value) / Expected life of the assets =…

Q: Around Jan 1, 2022, Coach Whip Corporation paid P5,000 for a piece of machinery. The same was…

A: A revaluation is an upward adjustment of a country's official exchange rate compared to a…

Q: On January 1, 2021, Mama Company purchased a machine for P2,750,000. The machine was depreciated…

A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…

Q: Coronado Industries purchased a machine on July 1, 2020, for $960000. The machine has an estimated…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: 1. Which depreciation method is the company using in each example? 2. Compute the depreciation…

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

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

A: Depreciation rate per hour = (Cost-Salvage value)/Total working hours

Q: On January 1, 2010, Graham Company purchased a new machine for P2,100,000. The new machine has an…

A: SOLUTION   FORMULA =  ACCUMULATED DEPRECIATION  (SUM OF THE YEARS DIGIT METHOD) =(COST OF ASSET -…

Q: On the first day of its current fiscal year, Lupao Corporation purchased equipment costing P400,000…

A: Under double depreciation expense, the depreciation is calculated at double rate of straight line…

Q: Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an…

A: Answer) Calculation of Revaluation Surplus Revaluation Surplus = Fair Value of Equipment on January…

Q: Lina Company purchased equipment on January 1, 2022 for P5,000,000. The equipment had a useful life…

A: Given information, Cost of the equipment=P5,000,000 Residual value =P600,000     Computation of…

Q: On January 3, 2019, Soju Co. purchased machinery. The machinery has an estimated useful life of…

A: Sum of the years digits = n(n+1)/2 Sum of the years digits =  8(8+1)/2 Sum of the years digits =…

Q: In the beginning of 2021, Ciento Company purchased equipment worth P250,000. It is estimated to be…

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

Q: Tammy Company purchased a boring machine on January 12018 for P8, 100 000. The useful life of the…

A: Depreciation The purpose of using the Depreciation is to calculate the actual value of the machine…

Q: On January 3, 2018, Leni company acquired an item of property, plant and equipment at a cost of…

A: Non-Current assets that are held for sale need to be measured at " Fair value less cost to…

Q: On October 1, 2020, Saria Company purchased equipment for $13,000 with an estimated useful life of 3…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: SYD method, how much is the depreciation expense

A: Estimated useful life = 5 years Sum of years' digits = 5 + 4 + 3 + 2 + 1 = 15

Q: ABC Co. purchased machinery that was installed and ready for use on January 3, 2020, at a total cost…

A: Solution: Depreciation rate - SLM = 1/5 = 20% Depreciation rate- DDB = 20%*2 = 40% Cost of machine =…

Q: On January 1, 2021, Mama Company purchased a machine for P2,750,000. The machine was depreciated…

A: Solution.      Cost = P2,750,000  Life (N) = 10 years  Sum of years of digits  = N (N + 1) ÷ 2  = 10…

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: On October 1, 2022, Sandhill Co. places a new asset into service. The cost of the asset is $103500…

A: Depreciation is the diminution in the worth of assets due to their erosion or normal wear and tear.…

Q: Wildhorse Co. purchased equipment for $418,800 which was estimated to have a useful life of 10 years…

A: Annual Depreciation  = (Cost of the assets - residual value) / life of the assets =…

Q: On January 1, 2022, Proton Company purchased a new machine or P2,100,000. The new machine has an…

A: The time period depreciation refers to an accounting technique used to allocate the value of a…

Q: On April 1, 2022, Deland Manufacturing Company purchased a new equipment for P800,000. The equipment…

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

Q: On January 1, 2021, Ding Company acquired an equipment with useful life of 8 years and P390,000…

A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…

Q: Bramble Corp. purchased a depreciable asset for $ 726000 on April 1, 2018. The estimated salvage…

A: Solution: Annual depreciation on asset = (Cost - Salvage value) / Useful life = ($726,000 - $72,000)…

Q: Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an…

A: As per straight line method of depreciation Depreciation per annum = (cost - Residual value) /useful…

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: On January 5, 2021, Lighter Company acquired a building. The building had an estimated useful life…

A: Sum of years' digits of useful life = 1+2+3+4+5+6+7+8+9+10 = 55 years Depreciation fraction of 2021…

Q: Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,00O. The same had an…

A: Depreciation as per straight line method = (cost - salvage value) /useful life =  P5000, 000/8 =…

Q: Company A bought a building for OMR.73,000, which has the expected useful life of eight years and a…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: Colvin Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The…

A: Calculate the year 1 depreciation for 3 months as follows: Year 1 depreciation = 2*(Book value of…

Q: Ariel Company purchased a boring machine on January 1, 2022 for P8,100,000. The useful life of the…

A: Introduction:- The following basic information as follows under:- Machine expected to units…

Q: On January 1, 2022, the Sheffield Corp. general ledger shows Equipment $25,400 and Accumulated…

A: Book value as on Jan. 1, 2022 = Cost of equipment - Accumulated dep. as on Jan. 1, 2022  Book value…

Q: depreciation is taken in the year of acquisition. • No depreciation is taken in the year of…

A: Depreciation under straight line method is:   = (Original cost  - Residual value) ÷ Useful life

Q: On April 21, 2018, OO YAN! Manufacturing Company bought new equipment for P725, 000. The new…

A: Under the sum of year digits method, depreciation is highest in the initial periods and lower in the…

Q: On January 1, 2022, Alma Company showed land with carrying amount of P10,000,000 and building with…

A: Revaluation of assets and liabilities can be gone through on the time of, when there is a admission…

Q: REPTILE COMPANY acquired a machine on January 1, 2018 for P5,250,000. It was to be depreciated using…

A:

Q: Swifty Corporation purchased a depreciable asset for $371000. The estimated salvage value is $26000,…

A: The different methods for computing depreciation are straight line method of depreciation, double…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.