Problem 27-16 (AICPA Adapted) Ambitious Company showed the following schedule of depreciable assets on January 1, 2020. Accumulated depreciation Acquisition date Residual Asset Cost A В 4,000,000 2,000,000 2,800,000 2,560,000 1,440,000 1,344,000 2018 2017 2017 400,000 200,000. 560,000 The useful life of each asset is 5 years. The entity takes a full depreciation in the year of acquisition and no depreciation in the year of disposition. Asset C was sold for P1,700,000 on June 30, 2020. Asset A is depreciated under the double declining method. 1: What is the depreciation of Asset A for 2020? 1,600,000 b. а. 1,440,000 416,000 576,000 с. d. 2. What is the depreciation of Asset B for 2020 ansuming same method in prior years? a. 240,000 b. 480,000 c. 360,000 d. 400,000 3. What is the gain on sale of Asset C? a. 244,000 b. 464,000 c. 356.000

Problem 27-16 (AICPA Adapted) Ambitious Company showed the following schedule of depreciable assets on January 1, 2020. Accumulated depreciation Acquisition date Residual Asset Cost A В 4,000,000 2,000,000 2,800,000 2,560,000 1,440,000 1,344,000 2018 2017 2017 400,000 200,000. 560,000 The useful life of each asset is 5 years. The entity takes a full depreciation in the year of acquisition and no depreciation in the year of disposition. Asset C was sold for P1,700,000 on June 30, 2020. Asset A is depreciated under the double declining method. 1: What is the depreciation of Asset A for 2020? 1,600,000 b. а. 1,440,000 416,000 576,000 с. d. 2. What is the depreciation of Asset B for 2020 ansuming same method in prior years? a. 240,000 b. 480,000 c. 360,000 d. 400,000 3. What is the gain on sale of Asset C? a. 244,000 b. 464,000 c. 356.000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 24CE

See similar textbooks

Similar questions

(Appendix 11.1) Auburn Company purchased an asset on January 1, Year 1, for 150,000. The asset has a MACRS life of 7 years. The residual value of the asset is 35,000. Calculate the depreciation expense for Year 1 and Year 2 using MACRS.
Question 5The following balances were extracted from the books of Billion Precision for the yearended 31 December 2020.Dr (RM) Cr (RM)Land 500,000Building 200,000Motor vehicles 120,000Plant and machinery 70,000Profit b/f as at 01.01.2020 237,650Capital 438,000Acc depreciation as at 1.1.2020 :-Building 60,000-Motor Vehicles 69,250-Plant & Machinery 40,000Returns 3,600 4,100Revenue 800,000Purchases 400,000Discounts 5,0006Carriage inwards 7,700Opening inventory 52,000Provision for bad debts 2,000Trade receivables / Trade payable 66,000 43,200Advertising 18,000Staff training cost 4,000Bad debts 12,500Motor expenses 27,000Rental 90,000Bank 7,600Wages and salaries 126,0001,701,800 1,701,800Additional information:i.i. The provision for bad debts should be 4% of trade receivables.ii. Depreciation is to be charged as follows:-Buildings 2% on cost.-Plant and machinery 20% on cost.-Vehicles 25% on cost.iii. The closing inventories is valued at RM57,000.Required:a. Prepare the Statement of…
36.The following data relate to a piece of equipment owned by Xyza Company, a calendar-year company. The company's policy is to depreciate its property, plant and equipment items to the nearest month.Acquisition date-July 1, 2020 Cost-P125,000 Estimated residual value–P5,000 Estimated service life–5 yearsWhat is the depreciation expense for the equipment for the year ended December 31, 2021 under the -(1) sum-of-the years' digits method and (2) double declining balance method. a. (1) 40,000 and (2) 50,000 b. (1) 36,000 and (2) 40,000 c. (1) 40,000 and (2) 48,000 d. (1) 40,000 and (2) 36,000
31-Dec-2020 31-Dec-2019 $ $ Equipment 177,000 100,000 Accumulated Depreciation $76,000 $60,000 A equipment with a cost of $20,000 was disposed during the year with accumulated depreciation of $15000 and gain on disposal of $3,000. No other disposal or retirement of Equipment during the year ended 31 December 2020. The total depreiciation expense for year ended 31 December 2020 is $ Additions of Equipment (Purchase of Equipment) for the year ended 31 December 2020 is $ Sales Proceeds on disposal of equipment is $
29. Analyzing Fixed Assets Pitt reported the following information for 2021 and 2022: 2021 2022 Property, plant, and equipment, cost $550,000 $ 550,000 Accumulated depreciation 170,000 220,000 Net sales 4,600,000 Depreciation expense 50,000 Required: Compute Pitt's tangible capital asset turnover ratio and the average age of tangible depreciable capital assets. Round "Tangible Capital Asset Turnover" to two decimal places and "Average Age of Tangible Depreciable Capital Asset" to one decimal place.
40-Total value of land and building is OMR 360,000 as on June 2021.The company uses only OMR 300,000 worth of land and building in its’ operating activities. How the land and building should be reported in the classified statement of financial position? a. Property, plant and equipment OMR 300,000 and long term investment OMR 60,000 b. Long term investment OMR 360,000 c. Property, plant and equipment OMR 60,000 and long term investment OMR 300,000 d. Property, plant and equipment OMR 360,000
Sister Company provided the following information for 2020: Current asset, Jan 1-P240,000; Property, Plant and Equipment, Jan 1-P1,600,000; Non-current liabilities-P580,000; Property, Plant and Equipment, Dec 31-P1,700,000; Current liabilities-P130,000. All assets are reported at year-end. Working capital of P90,000 remained unchanged. Net income for 2021was P60,000. No dividend was declared during the year and there were no other changes in the shareholders’ equity. How much is the amount of current assets on Dec. 31, 2020? How much is the shareholders’ equity on Dec. 31, 2020?
1 On December 31, 2019, the statement of financial position of Twitter Corporation showed the following property and equipment after charging depreciation: Building P3,000,000 Accumulated depreciation (1,000,000) P2,000,000 Equipment 1,200,000 Accumulated depreciation (400,000) 800,000 The company has adopted the revaluation model for the valuation of property and equipment. This has resulted in the recognition in prior periods of an asset revaluation surplus for the building of P140,000. The company does not make a transfer to retained earnings in respect of realized revaluation surplus. On December 31, 2019, an independent valuer assessed the fair value of the building to be P1,600,000 and the equipment to be P900,000. The building and equipment had remaining useful lives of 25 years and 4 years, respectively, as of that date. The carrying amount of property and equipment as of December 31, 2020 is Group of…
20. Ambitious Company showed the following schedule of depreciable assets on January 1, 2017. Asset Cost Accumulated Acquisition Residual Depreciation A 4,000,000 2,560,000 2015 400,000 B 2,000,000 1,440,000 2014 200,000 C 2,800,000 1,344,000 2014 560,000 The useful life of each asset is 5 years. The entity takes a full depreciation in the year of acquisition and No depreciation in the year of disposition. Asset C was sold for 1,700,000 on June 30, 2017. Asset C was depreciated using the straight line method. What is the gain on sale of Asset C?
P12.1B (L0 1,2,3,5) (Correct Intangible Asset Account) Dolphin Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021: Instructions 3/1/2020 3/1/2020 4/1/2020 6/30/2020 9/1/2020 12/31/2020 6/30/2021 9/1/2021 Intangible Assets 10-year franchise agreement; expires 2/28/28 Organization costsAdvance payment for 2 years for office space Purchased a patent (8-year life) Cost to develop a patent (10-year life) Net operating loss for 2020Research and development costsLegal fee to successfully defend internally developed patent $ 60,000 7,000 24,000 80,000 40,000 61,000 265,000 13,500 Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2021, recording any necessary amortization and reflecting all balances accurately as of that date. (Ignore…
1. The following information is from Direct to You Corp.’s (DYC) financial records for its year ended December 31, 2020: Select statement of financial position information: 2020 2019 Investments in financial assets (at fair value through profit or loss [FVPL]) 12,000 10,000 Inventory 575,000 498,000 Property, plant, and equipment (PPE) 1,984,000 1,396,000 Less: accumulated depreciation (650,400) (487,000) Copyright 126,000 135,000 Patents 564,000 417,000 Select statement of comprehensive income information: Depreciation of property, plant, and equipment (334,400) Amortization of patents (65,000) Interest expense (75,000) Impairment loss — copyright (9,000) Gain on sale of PPE 23,000 Additional information: PPE that originally cost $570,000 was sold during the year. 100,000 common shares were issued in 2020 to acquire $450,000 of property, plant, and equipment. DYC is subject to IFRS. What amount of net cash used…
4. On December 31, 2019, the statement of financial position of Twitter Corporation showed the following property and equipment after charging depreciation: Building P3,000,000 Accumulated depreciation (1,000,000) P2,000,000 Equipment 1,200,000 Accumulated depreciation (400,000) 800,000 The company has adopted the revaluation model for the valuation of property and equipment. This has resulted in the recognition in prior periods of an asset revaluation surplus for the building of P140,000. The company does not make a transfer to retained earnings in respect of realized revaluation surplus. On December 31, 2019, an independent valuer assessed the fair value of the building to be P1,600,000 and the equipment to be P900,000. The building and equipment had remaining useful lives of 25 years and 4 years, respectively, as of that date. The amount to be recognized in profit or loss for 2019 related to the revaluation of property and…