Homework Help is Here – Start Your Trial Now!
Business
Accounting
Problem 27-27 (AICPA Adapted) At the beginning of current year, Obvious Company provided the following: Accumulated depreciation Cost Land Building Machinery and equipment 875,000 7,500,000 2,250,000 1,644,500 635,000 Building – double declining balance, 25 years Machinery and equipment – Straight line, 10 years Land improvements – Straight line - On January 1, a plant facility consisting of land and building was acquired from another entity in exchange for 25,000 shares of Obvious Company. *

Problem 27-27 (AICPA Adapted) At the beginning of current year, Obvious Company provided the following: Accumulated depreciation Cost Land Building Machinery and equipment 875,000 7,500,000 2,250,000 1,644,500 635,000 Building – double declining balance, 25 years Machinery and equipment – Straight line, 10 years Land improvements – Straight line - On January 1, a plant facility consisting of land and building was acquired from another entity in exchange for 25,000 shares of Obvious Company. *

Cornerstones of Financial Accounting
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 76APSA
See similar textbooks
icon
Related questions
Question
100%

Pls show solutions and answer

Problem 27-27 (AICPA Adapted) At the beginning of current year, Obvious Company provided the following: Accumulated depreciation Cost 875,000 7,500,000 2,250,000 Land Building Machinery and equipment 1,644,500 635,000 Building – double declining balance, 25 years Machinery and equipment – Straight line, 10 years Land improvements - Straight line On January 1, a plant facility consisting of land and building was acquired from another entity in exchange for 25,000 shares of Obvious Company. On this date, the share had a market price of P50. Current zonal values of land and building for property tax purposes- are P150,000 and P600,000, respectively. On March 31, new parking lot, street and sidewalk at the acquired plant facility were completed at a total cost of P192,000. These expenditures had an estimated useful life of 12 years. On July 1, machinery and equipment were purchased at a total invoice cost of P340,000. Additional cost of P10,000 for delivery and P50,000 for installation were incurred. On December 20, a machine with a cost of P170,000 and a carrying amount of P29,750 at date of disposition was scrapped without cash recovery, Required: Determine the depreciation of the building, machinery and equipment, and land improvements for the current year. 800
Transcribed Image Text:Problem 27-27 (AICPA Adapted) At the beginning of current year, Obvious Company provided the following: Accumulated depreciation Cost 875,000 7,500,000 2,250,000 Land Building Machinery and equipment 1,644,500 635,000 Building – double declining balance, 25 years Machinery and equipment – Straight line, 10 years Land improvements - Straight line On January 1, a plant facility consisting of land and building was acquired from another entity in exchange for 25,000 shares of Obvious Company. On this date, the share had a market price of P50. Current zonal values of land and building for property tax purposes- are P150,000 and P600,000, respectively. On March 31, new parking lot, street and sidewalk at the acquired plant facility were completed at a total cost of P192,000. These expenditures had an estimated useful life of 12 years. On July 1, machinery and equipment were purchased at a total invoice cost of P340,000. Additional cost of P10,000 for delivery and P50,000 for installation were incurred. On December 20, a machine with a cost of P170,000 and a carrying amount of P29,750 at date of disposition was scrapped without cash recovery, Required: Determine the depreciation of the building, machinery and equipment, and land improvements for the current year. 800
Expert Solution
steps

Step by step

Solved in 5 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Factors Affecting Housing Decision
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS