RevaluationOn January 1, 2018, the following data was gathered regarding revaluation of the equipmentEquipmentAccumulated DepreciationAge of assetFair ValueCost8,000,0004,500,0009 years6,125,000On January 2, 2019 the equipment was sold for 5,500,000 cash.Required: Fill-out the table below and prepare the journal entries for 2018 and the sale in 2019 using (present necessarysolutions)Proportional methodEamination methodAppreciation|(RC-Cost)CostReplacement CostEquipmentAccumulatedDepreciationCA/FVIRSDepreciation 2018Balance of Revaluation Surplus as of December 31,2018Gain on Sale of equipment on January 2, 2019

Name: RevaluationOn January 1, 2018, the following data was gathered regard
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Description: RevaluationOn January 1, 2018, the following data was gathered regarding revaluation of the equipmentEquipmentAccumulated DepreciationAge of assetFair ValueCost8,000,0004,500,0009 years6,125,000On January 2, 2019 the equipment was sold for 5,500,000

The question pertains to revaluation of the asset. IAS 16 pertains to revaluation of asset. The IAS…

Business

Accounting

Proportional method Eamination method Appreciation (RC-Cost) Cost Replacement Cost Equipment Accumulated Depreciation CA/FVIRS Depreciation 2018 Balance of Revaluation Surplus as of December 31, 2018 Gain on Sale of equipment on January 2, 2019

Proportional method Eamination method Appreciation (RC-Cost) Cost Replacement Cost Equipment Accumulated Depreciation CA/FVIRS Depreciation 2018 Balance of Revaluation Surplus as of December 31, 2018 Gain on Sale of equipment on January 2, 2019

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 7P: Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset,...

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On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000
Investing Activities and Depreciable Assets Verlando Company had the following account balances and information available for 2019: During 2019, Verlando recorded the following transactions affecting these accounts: a. Land with a carrying value of 35,000 was sold at a loss of 6,000. b. Land and equipment were purchased with cash during the period. c. Equipment with an original cost of 20,000 that had a book value of 4,000 was written off as obsolete. d. A building with an original cost of 60,000 and accumulated depreciation of 25,000 was sold at a 23,000 gain. e. Depreciation expense and amortization expense were recorded. f. Net income for the year was 60,000. g. A patent was acquired during the year in exchange for 1,200 shares of common stock with a par value of 1 per share and a market value of 26 per share. h. Additional marketable securities wefe purchased during the year. i. Verlando Company has no notes payable in the liabilities section of its balance sheet. Required: 1. Next Level Assuming that Verlando uses the indirect method to determine operating cash flows, what is the amount of depreciation expense and amortization expense that would be added back to net income: 2. Prepare the investing activities section of the statement of cash flows for the year ended December 31, 2019. 3. Prepare the disclosure for significant noncash transactions for the statement of cash flows for the year ended December 31, 2019.
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On December 31, 2019, Vail Company owned the following assets: Vail computes depreciation and amortization expense to the nearest whole year. During 2020, Vail engaged in the following transactions: Required: 1. Check the accuracy of the accumulated depreciation balances at December 31, 2019. Round to the nearest whole dollar in all requirements. 2. Prepare journal entries to record the preceding events in 2020, as well as the year-end recording of depreciation expense. 3. Prepare an Accumulated Depreciation account for each category of assets, enter the beginning balance, post the journal entries from Requirement 2, and compute the ending balance.
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Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.