On January 2, 2018, Lem Corp. bought machinery under a contract that required a down payment of P10,000 plus twenty-four monthly payments of P5,000 each, for total payments of P130,000. The cash equivalent price of the machinery was P110,000. The machinery has an estimated; useful life of ten years and estimated residual value of P5,000. Lem uses straight-line depreciation. In its 2018 income statement, what amount should Lem report as depreciation for this machinery? Group of answer choices     P13,000   P11,000   P12,500   P10,500

Q: On January 1, 2017, Henry Manufacturing Corporation purchased a machine for $40,600,000. Henry's…

A:

Q: On January 1, 2018, Nickel Co. purchased a land for P12,000,000. The company expected to extract…

A: Year 2018 Purchase price of land = P12,000,000 Expected minerals to be extracted = 2,000,000…

Q: On January 1, 2020, Bonita SA purchased the following two machines for use in its production…

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

Q: The estimated useful life of the machine is five years, after which time the residual value is…

A: The right answer is option c.36,000

Q: A piece of equipment was purchased by Jonesy’s Ltd. on April 10, 2016 at a cost of $35,000. It is…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: On July 1, 2020, Zelensky Company, a calendar-year company, purchased a machine for a cash price of…

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

Q: At the beginning of the year Joeker Company brought machinery under a contract that required a down…

A: Interest is paid on the loan amount sanctioned. Interest amount is said to be the cost of the funds…

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: January 1, 2021, NUBD Co. purchased a new machine for P100,000 with an estimated useful life of five…

A:

Q: Burrell Company purchased a machine for $34,000 on January 2, 2019. The machine has an estimated…

A: In this question , we will find depreciation by straight line method and double- declining balance…

Q: On July 1, 2017, Snow Corp purchases a sleigh (property, plant, and equipment) and agrees to make 10…

A: An asset is recorded at the original cost at the time of purchase. The initial cost paid by the…

Q: On January 1, 2022, Romania Company purchased a specialized factory equipment for cash at a purchase…

A: Here, Purchase price of Equipment is P700,000 Freight Cost is P20,000 Handling Cost is P10,000…

Q: On March 10, 2020, Waterway Limited sold equipment that it bought for $266,880 on August 21, 2013.…

A: Depreciation: When a new fixed asset is purchased, it does not have the price that was at the time…

Q: On January 1, 2021, NUBD Co. purchased a new machine for P100,000 with an estimated useful life of…

A:

Q: March 1, 2021, Bharat Corporation purchased an equipment for P500,000 with an estimated residual…

A: Bharat corporation would recognise the lease rentals received +Lease bonus if any received and less…

Q: On March 1, 2021, Bharat Corporation purchased an equipment for P500,000 with an estimated residual…

A: Barat Corporation's Lease Details for 2021   Cost of Equipment= P500,000 Monthly lease rent= P18,000…

Q: The gain on reversal of impairment loss on December 31, 2016 is

A: Calculate impairment loss as on April 1, 2016 as shown below: Impairment loss = Cost - Accumulated…

Q: On July 1, 2020, Lettuce Company, a calendar-year company, purchased a machine for a cash price of…

A: 2020: Depreciation rate = 1/useful life = 1/10 = 10% Depreciation expense (for the entire year) = 2…

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: Yellow River Ltd purchased a machine on 1 July 2016 at a cost of $1280,000. The machine is expected…

A: Timing Difference: It is the differences between accounting income and taxable income due to…

Q: Sheridan Pants Company acquires a delivery truck on April 6, 2021, at a cost of $40,000. The truck…

A: The Numerical has covered the concept of Depreciation Expenses. The Double Declining Method is a…

Q: Tiger Ltd purchased a machine on 1 July 2017 at the cost of $640,000. The machine is expected to…

A: Depreciation is the reduction in the value of asset due to obsolesce, wear and tear or usage.…

Q: On January 2, 2022, Lauren Corporation purchased factory equipment for $850,000. In addition, it…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: Tory Enterprises pays $238,400 for equipment that will last five years and have a $43,600 salvage…

A: Given information is:  Tory Enterprises pays $238,400 for equipment that will last five years and…

Q: Sheffield Corp., which has a calendar year accounting period, purchased a new machine for $90000 on…

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

Q: ABC Company purchases equipment with a cost of $100,000.  In addition, it pays $20,000 to install…

A: The value of assets goes on decreasing with the passage of time due to various reasons such as…

Q: On 30 June 2020, James Ltd acquired a machine for $200 500 cash, with an expected useful life of ten…

A: Fair Value Valuation of Non Current Assets While adopting the fair value valuation it can't measure…

Q: Bilmoco Company purchased a new machine on a deferred payment basis. A down-payment of P100,000 was…

A: Cost of machine means the purchase price of machine including installation cost , non refundable…

Q: On 30 June 2019, Swan Ltd acquired a machine for $180 000 cash, with an expected useful life of 9…

A: When a company revaluates the value of its fixed assets on the basis of Fair Market Value, the…

Q: On July 1, 2019, Nuuty Inc., a calendar-year company, purchased a machine for a cash price of…

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

Q: On April 1, 2014, Brandy Company has a machine with a cost of P1,000,000 and accumulated…

A: In order to determine the carrying value of the assets, the accumulated depreciation is required to…

Q: Proton Company purchased a new equipment on a deferred payment basis. A down payment of P50,000 was…

A: Capitalization cost is the total amount spent on the asset to make the asset put to use. It includes…

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: CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying $1.000.000,…

A: The cost of the machine would be the price that would be paid on a cash basis immediately upon…

Q: Skysong Company purchased equipment for $199,200 on October 1, 2020. It is estimated that the…

A: Depreciation is the value of all fixed assets reduce gradually over time due to Wearing out,…

Q: Blue Company purchased equipment for $266,000 on October 1, 2020. It is estimated that the equipment…

A: Given, Cost $   266,000   Salvage value $     14,000   Depreciable cost $   252,000…

Q: On July 1, 2019, Mega Company purchased a machinery for P900,000 and incured freight and handling…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…

Q: On 1 April 2021, PHI plc acquired a new machine for a price of £25,000. On the same day, PHI paid…

A: Working of depreciation on diminishing balance @ 30%           Year Book Val   Dep Net Val…

Q: On January 1, 2018, Nickel Co. purchased a land for P12,000,000. The company expected to extract…

A: Cost of land = $12,000,000 Expected extraction = 2,000,000 Time = 20 years Capacity raised =…

Q: Tory Enterprises pays $238,400 for equipment that will last five years and have a $43,600 salvage…

A: A double declining method is an accelerated depreciation method that actually counts as an expense…

Q: ABC Company has an equipment acquired on January 1, 2018 at a cost of P2,200,000 with estimated…

A: Given, 1/1/18 - purchased equipment worth P2200000. residual value = P200000. estimated useful life…

Q: Burrell Company purchased a machine for $21,000 on January 2, 2019. The machine has an estimated…

A: Straight line method: Straight line basis is a method of calculating depreciation and amortization,…

Q: On January 2, 2022, BRACE company purchased a new machine on a deferred payment basis. A down…

A: When assets are purchased and a non-interest-bearing note is issued then the difference between the…

Q: Concord Corporation, which has a calendar year accounting period, purchased a new machine for $95400…

A:

Q: NOS Corp. purchased equipment for $180,000. They sold the equipment at the end of three years for…

A: Depreciation is a way to reduce the cost of asset over a period of time due to usage, wear &…

Q: On January 1, 2020, A Company decided to sell one of its machineries with a cost of P3,400,000 and…

A: When the assets are categorised as held for sale, the net realisable value is considered for…

Q: Blue Co. purchased an equipment on March 1, 2015, made a 50% down payment, and the balance will be…

A: The question is based on the concept of Depreciation Accounting. Depreciation is the decrease on the…

Q: On January 1, 2010, Nueva company, acting as a lessor, leased an equipment for ten years at annual…

A: Introduction: Lease is an arrangement between two parties wherein the owner of the assets allows…