Goliath Company purchased an equipment on January 2, 2017 for P3,000,000. At the dateof acquisition, the equipment had a life of 6 years with no salvage value. The equipment isbeing depreciated on a straight-line basis. In January 2020, Goliath Company determinedthat the equipment had a useful life of 8 years from the date of acquisition with no salvagevalue. What should be the carrying amount of the equipment as of December 31, 2020?P300,000P500,000P1,200,000P1,800,000 Selected information from the accounts of Colossians Co. at December 31, 2021 revealsthat the total income since incorporation is P420,000; the total cash dividends paid isP130,000; the total value of property dividends distributed is P30,000; and the excess ofproceeds over cost of treasury shares sold is P110,000. In its December 31, 2021 statementof changes in equity, what amount should the firm report as accumulated profits (retainedeamings)?P260,000P290,000P370,000P400,000

Name: Goliath Company purchased an equipment on January 2, 2017 for P3,000,
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Description: Goliath Company purchased an equipment on January 2, 2017 for P3,000,000. At the dateof acquisition, the equipment had a life of 6 years with no salvage value. The equipment isbeing depreciated on a straight-line basis. In January 2020, Goliath Comp

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Goliath Company purchased an equipment on January 2, 2017 for P3,000,000. At the date of acquisition, the equipment had a life of 6 years with no salvage value. The equipment is being depreciated on a straight-line basis. In January 2020, Goliath Company determined that the equipment had a useful life of 8 years from the date of acquisition with no salvage value. What should be the carrying amount of the equipment as of December 31, 2020? P300,000 P500,000 P1,200,000 P1,800,000

Goliath Company purchased an equipment on January 2, 2017 for P3,000,000. At the date of acquisition, the equipment had a life of 6 years with no salvage value. The equipment is being depreciated on a straight-line basis. In January 2020, Goliath Company determined that the equipment had a useful life of 8 years from the date of acquisition with no salvage value. What should be the carrying amount of the equipment as of December 31, 2020? P300,000 P500,000 P1,200,000 P1,800,000

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 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...

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