Softvoice Company disclosed that the depreciation policy on machinery is as follows A full year depreciation is taken in the year of acquisition No depreciation is taken the year of disposition The estimated useful life is five years . The straight line method is used On June 30, 2019the entity sold for P2,300,000 a machine acquired in 2016 for P4,200,00 . The residual value was P600,000 . What amount of loss on the disposal should be recorded in 2019? Select the correct response 620,000 140,000 260,000

Q: The Peridot Company purchased machinery on January 2, 2019, for $960,000. A five-year life was…

A: SOLUTION- DEPRECIATION-  IT INDICATES REDUCTION IN VALUE DEPENDS ON LIFE OF ASSETS . LIFE OF ASSETS…

Q: January 1, 2017, BMB Corporation acquired machinery at a cost of ₱500,000. BMB adopted the…

A: As per IAS 8, Accounting policies, changes in Accounting estimates and errors  A change in method of…

Q: At December 31, 2020, the following existed on the records of BULGOGI Co.:  Fixed Assets: $86,000…

A: Net Book Value = Fixed Assets - Accumulated Depreciation

Q: On January 2, 2015, Moser, Inc., purchased equipment for $100,000. The equipment was expected to…

A: Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets = ($100000 - 10000)…

Q: ABC Company purchased equipment on January 1, 2018 for ₱9,000,000. The equipment had a useful life…

A: Working Note;

Q: Gundrum Company purchased equipment on January 1, 2015 for $920,400. The equipment was expected to…

A: Working Note 1:Compute accumulated depreciation.

Q: The following data relate to a piece of equipment owned by ABCD Company, a calendar-year company.…

A: Steps to calculate depreciation under Sum of the years' digit method - 1) calculate the depreciable…

Q: On September 30, 2018, Bricker Enterprises purchased a machine for OMR 11,000. The estimated service…

A: Depreciation is the decrease in value of an asset due to various reasons like wear and tear,…

Q: At the half of the year 2021, Rosary Co. reported the following information: Equipment t cost…

A: Revaluation surplus is the amount which is reported at the year-end after computing the surplus by…

Q: Shah Enterprises, acquired a new equipment on April 2014. The cost of the equipment was $160,000…

A: Under the half-year convention, the depreciation is charged for half-year in the year of purchase of…

Q: Maroon Company’s depreciation policy on machinery and equipment is as follows:  A full year’s…

A: Net book value on June 30, 2021 = cost of the assets  - accumulated depreciation = 420000 - P216,000…

Q: Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $800,000. The…

A: The double-declining balance method refers to the accelerated depreciation which is compared to the…

Q: Poe Company disclosed that the depreciation policy on machinery is as follows:…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: A machine was purchased at a cost of $9,600,000 on June 30, 2020. The machine’s estimated salvage…

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

Q: In the 01 July 2016, Samsung Ltd acquired the machine A by $1,502,000. Estimated useful life is 10…

A: GIVEN DATA   In the 01 July 2016, Samsung Ltd acquired the machine A by $1,502,000. Estimated useful…

Q: Presented below is information related to equipment owned by Pujols Company at December 31, 2017.…

A: Impairment loss = Carrying value of the assets - Recoverable value of the assets where, Recoverable…

Q: On January 2, 2021, Oriole Enterprises reports balances in the Equipment account of $34,100 and…

A: Given: Purchase cost as stated in equipment account=$34,100 Accumulated Depreciation=$8,660 Book…

Q: Maroon Company’s depreciation policy on machinery and equipment is as follows: A full year’s…

A: Net book value on June 30, 2021 = cost of the assets  - Accumulated depreciation = 420000 - 216000 =…

Q: On January 1, 20x1, DOC WILLIE Company acquired equipment from Catanduanes Factory Supplies with an…

A: Note: As per the norms of Bartleby, in case of many independent questions, 1 question can be…

Q: For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation…

A:

Q: For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation…

A: Unerdepreciated value as on January 2021 = Cost of the assets - Accumulated deprecitaion = $2848000…

Q: The following data relate to a piece of equipment owned by Xyza Company, a calendar-year company.…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: Ping Company provided the following information with respect to its building: • The building was…

A: Lets understand the basics. Depreciation is a reduction in value of asset due to wear and tear,…

Q: The Peridot Company purchased machinery on January 2, 2019, for $800,000. A five-year life was…

A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…

Q: For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation…

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

Q: On January 1, 2017, Bride Company purchased for P2,400,000 a machine with a useful life of ten years…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/10 years) x 2 = 20%

Q: Parable Company’s depreciation policy on machinery and equipment is as follows: *A full year’s…

A: The gain on disposal of asset is calculated as the difference of sale value and book value.

Q: Maroon Company’s depreciation policy on machinery and equipment is as follows: A full year’s…

A: Fixed assets means the asset which is used by company for many years to come for the purpose of…

Q: On January 1, 2015, Mogul company acquired equipment to be used in the manufacturing operations.…

A: Given that, The residual value of equipment = 50000 The estimated useful life of equipment = 10…

Q: Maroon Company’s depreciation policy on machinery and equipment is as follows: A full year’s…

A: Net book value on June 30, 2021 = cost of the assets  - Accumulated depreciation = 420000 - 216000 =…

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

A: Depreciation: It is an expense incurred in the day-to-day normal use of assets during the…

Q: Jefferson Company purchased a piece of equipment on January 1, 2014. The equipment cost HK$600,000…

A: Depreciation is a charge of expense against profit due to the wear and tear of the asset purchased.

Q: Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $155,000. The…

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

Q: On January 1, 2017, Mogul Company acquired equipment to be used in its servicing operations. The…

A: Residual value = P 50,000 Depreciation = P 65,000 Depreciation rate = 10%

Q: On January 1, 2017, NBM Corporation acquired machinery at a cost of ₱500,000. BMB adopted the…

A: As per IAS 8, Accounting policies, changes in Accounting estimates and errors  A change in method of…

Q: On January 1, 2018, Wheeler, Inc. purchased some equipment for $3,900. The equipment had an…

A: Depreciation expense is part of cost of the asset charged as expense in the income statement.…

Q: Determine the amount of depreciation expense for years ended December 31, 2017,2018,2019 and 2020,…

A:

Q: Citizen Co. purchased equipment on January 2, 2016, for P500,000. The equipment had an estimated…

A: Compute depreciation for the first two years i.e. 2016 and 2017 with double declining method as…

Q: For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation…

A: A journal entry is the process of recording or maintaining track of any financial or non-financial…

Q: Ping Company provided the following information with respect to its building: The building was…

A: Depreciation expenses: Depreciation expenses are the expense incurred on the wear and tear of the…

Q: Presented below is information related to equipment owned by Monty Company at December 31, 2017.…

A: Impairment of Assets:Impairment of an asset refers to sudden decrease of the present value of…

Q: depreciation is taken in the year of acquisition. • No depreciation is taken in the year of…

A: Depreciation under straight line method is:   = (Original cost  - Residual value) ÷ Useful life

Q: What depreciation would Murgatroyd record for the year 2018 on this equipment

A: Given information is: On January 1, 2016 Murgatroyd Co. purchased equipment for OMR 30,000,…

Q: On January 1, 2017, Mogul company acquired equipment to be used in the manufacturing operations. The…

A: Sum of 5 years = 1+2+3+4+5 = 15 years Sum of 3 years i.e 2017 to 2019 = 5+4+3 = 12

Q: Bergen Company purchased factory equipment which was installed and put into service January 1, 2018…

A: The double-declining method represents the reduction of the depreciation in the value of assets with…

Q: At the beginning of 2016, Robotics Inc. acquired a manufacturing facility for $13.2 million. $10.2…

A: Working Note 1: Compute the depreciation under the straight-line method for the year 2016.

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.