On March 20, 2021, Barnes Company purchased a machine for P2,400,000 for the purpose of leasing it to others. The machine is expected to have a 10 year life and no residual value. It will be depreciated on the straight line base computed to the nearest month. The machine was leased to Rally Company on April 1, 2021 for 4 years at a monthly rental of P36,000. Barnes Company paid P120,000 initial direct costs associated with negotiating the lease in March 2021. 1. The machinery would be reported in the financial statements on December 31, 2021 at:

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A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

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A:

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A: Introduction:- A piece of machinery at Wake Coffee Co. is no more in use. The machinery was…

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

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A:

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Q: A used machine, which had an initial cost of $70,000, was purchased by Company A for $50,000. The…

A: Depreciation means the fall in value of assets due to wear and tear or usage or change in…

Q: On January 1, 2020, Button Inc. purchased the following two machines for use in its production…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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Q: On July 1, 2019, Amplex Company purchased a coal mine for $2 million. The estimated capacity of the…

A: The answer is stated below:

Q: Gruman Company purchased a machine for $198,000 on January 2, 2019. It made the following estimates:…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Mountain View Resorts purchased equipment at the beginning of 2021 for $41,000. Residual value at…

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Q: Wildhorse Enterprises purchased equipment on March 15, 2021, for $70,220. The company also paid the…

A: Introduction:- A cost is the value of money spent on creating something or delivering a service that…

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A: The total cost for fixed that is to be capitalized includes purchasing price, transfer cost and…

Q: On January 1, 2019, Woodstock, Inc. purchased a machine costing $42.400. Woodstock also paid $2.200…

A: Depreciable cost=Cost+installation-Residual value=$42,400+$2,200-$6,200=$44,600-$6,200=$38,400

Q: Gruman Company purchased a machine for $198,000 on January 2, 2019. It made the following estimates:…

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

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Q: On January 2, 2016, King Pet purchased fixtures for $60,4000 cash, expecting the fixtures to remain…

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

Q: Speed, Inc., is a shipping company. On 1/1/20, the company purchases a new commercial sleeper truck…

A: Depreciation = 790,000 -60000/10  = 73000 SLM rate = 1/10 = 10% Income StatementDepreciation…

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A: Annual depreciation=$2,500,0005=$500,000

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