Taylor Company purchased a machine for $9,800 on January 1, 2016. The machine has beendepreciated using the straight-line method assuming it has a five-year life with a $1,400residual value. Taylor sold the machine on January 1, 2018, for $7,600.Q7-62. What gain or loss should Taylor record on the sale?a. Gain, $800b. Loss, $1,160c. Loss, $520d. Gain, $1,160

Q: BLACK JACK Company purchased an automotive equipment on June 30, 2018 for $3,000,000. At the date of…

A: Depreciation formula  as per straight line method  = (Cost- residual value)/useful life

Q: On January 2, 2017, Cancer Company purchased transportation equipment costing P2,400,000. The new…

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

Q: Sokolsky Excavating purchased a used dump truck for $90,000 on January 1, 2018. Thecompany has…

A:

Q: Goliath Company purchased an equipment on January 2, 2017 for P3,000,000. At the date of…

A: Depreciation expense is an expense which is charged on fixed assets over the years the assets is…

Q: On January 1, 2016, Gecho Corporation purchased computer equipment for $23,000. The equipment has an…

A: Solution: depreciation rate - SLM = 1/4 = 25% Depreciation rate - DDB = 25%*2 = 50% Depreciation for…

Q: Love Company purchased a machine on April 1, 2017 for P750,000.  At that time, was determined that…

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

Q: Swift Company purchased a machine on January 1, 2016, for $300,000. At the date of acquisition, the…

A: Depreciation Depreciation refers to the allocation of the cost of an asset to its estimated life.…

Q: On January 1, 2016 Murgatroyd Co. purchased equipment for OMR 30,000, estimating a four-year useful…

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

Q: Vaughn Manufacturing purchased a new machine on May 1, 2012 for $566400. At the time of acquisition,…

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

Q: The Fisher Company purchased a machine on October 1, 2018, for $18,000. At the time of acquisition,…

A: Depreciable cost=Cost-Salvage value=$18,000-$5,000=$13,000

Q: Mazaya Company has decided to sell one of its old machines on June 30, 2011. The machine was…

A: Gains: Gains are the profits earned from non-operating activities of a business like sale of land,…

Q: Janet Company purchased a machine on April 1, 2017 for P750,000.  At that time, was determined that…

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

Q: e was sold for P26,000. What should be the loss recognized from the sale of the machine?

A:

Q: The Hong Company purchased for P240,000 cash on July 1, 2014 a machine with an estimated useful life…

A: Useful life (In Months) = 10 years  x 12 months = 120 months Monthly Depreciation Expense = ( Cost…

Q: On January 1, 2018, CRIMSON Company purchased machineries for $10,560,000 and depreciated it by the…

A: As per IAS 8, Accounting policies,Changes in accounting estimates and errors A change in useful life…

Q: On January 1, 2008, Minco Corporation purchased, for $100,000, equipment having a useful life of…

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

Q: CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying ₱1,000,000,…

A: In case of purchase of fixed asset under instalment method, then amount paid by way of number of…

Q: On January 1, 20Y1, Jacob Inc. purchased a commercial truck for $48,000 and uses the straight-line…

A: Lets understand the basics. In straight line basis, depreciation is calculated in equal installments…

Q: JPHEI Company purchased a machine on January 1, 2016 for P6,000,000. At the date of acquisition, the…

A: Solution: Accumulated depreciation for 3 years (from 2016 to 2018) = (Cost - residual value) * 3/ 6…

Q: Mortal Company acquired a machine for P3,200,000 on August 31, 2017. The machine has a 5-year useful…

A: Impairment of fixed assets means when fair value of the fixed assets is less than the carrying value…

Q: King Company purchased a machine on July 1, 2018 for P600,000. The machine has an estimated useful…

A: Depreciation means the fall in value of assets because of wear and tear , usage , passage of time or…

Q: Fenner Co. purchased a lathe machine for $72,000 on January 5, 2013. This (old) lathe had an…

A: Exchange of asset with no commercial substance is a condition in which the transfer or exchange of…

Q: Taylor Company purchased a machine for $9,800 on January 1, 2016. The machine has beendepreciated…

A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset…

Q: The Joyful Company purchased a machine on November 1, 2019 for P296,000. At the time of acquisition,…

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

Q: On January 1, 2018, CRIMSON Company purchased machineries for P10,560,000 and depreciated it by the…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: On January 1, 2015, Minco Coportation purchased, for $100,000, equipment having a useful life of the…

A: Depreciation = Total Cost of Equipment - Salvage ValueUseful life

Q: Spiderman Company purchased a machine on January 1, 2017 for P3,760,000. The machine was estimated…

A: Total Sum-of-the-years'-digits = 1+2+3+4+5 = 15 years Total sum of life remaining at the end of 2019…

Q: On January 2, 2017, Cancer Company purchased transportation equipment costing P2,400,000. The new…

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

Q: On April 1, 2014, Brandy Company has a machine with a cost of P1,000,000 and accumulated…

A: In order to determine the carrying value of the assets, the accumulated depreciation is required to…

Q: Mazaya company has decided to sell one of its old machines on June 30, 2011. The machine was…

A: Annual depreciation = ( cost of the assets - residual value) / life of the assets = ($120,000 - $0)…

Q: Nanki Corporation purchased equipment on January 1, 2014, for $616,000. In 2014 and 2015, Nanki…

A: Depreciable cost is used to compute the depreciation, and it is calculated by subtracting its value…

Q: Shine Corporation bought equipment on April 2, 2017 for P200,000. This equipment had an estimated…

A: Depreciation is an accounting technique for distributing a tangible or physical asset's cost over…

Q: On January 1, 2018, CRIMSON Company purchased machineries for $10,560,000 and depreciated it by the…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Bradley Company purchased a machine for $34,000 on January 1, 2017. It depreciates the machine using…

A: Straight-line method refers to the method by which owners of company extent the value of asset for…

Q: CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying $1.000.000,…

A: The cost of the machine would be the price that would be paid on a cash basis immediately upon…

Q: anet Company purchased a machine on April 1, 2017 for P750,000. At that time, was determined that…

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

Q: Mazaya Company has decided to sell one of its old machines on June 30, 2011. The machinewas…

A: Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets = (120000 - 0) / 10…

Q: RS Inc. acquired a delivery truck for P2,100,000 on January 1, 2018. The delivery truck has useful…

A: 1. Sum of useful life  = 5+4+3+2+1  = 15 2. Calculation of depreciation rate for each year under sum…

Q: The Joyful Company purchased a machine on November 1, 2019 for P296,000. At the time of acquisition,…

A: At the time of disposal of an asset, the gain or loss on the sale of asset can be computed by…

Q: Awni Company purchased a new machine on May 1, 2010 for € 44,000. At the time of acquisition, the…

A: Awni Company purchased a new machine on May 1, 2010 for € 44,000. At the time of acquisition, the…

Q: Mazaya Company has decided to sell one of its old machines on June 30, 2011 The machine was…

A: Depreciation:   It is a non-cash expense. This is the decrease in the value of a fixed asset…

Q: Standard Company purchased a machine on January 1, 2009 for P500,000. At the time, it was determined…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: On January 1, 2016, Rexford Company purchased a drilling machine for $11,500. The machines has an…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: On January 1, 2016, Mullhausen Co. began using the composite depreciation method. There were three…

A: Under composite depreciation method, when an asset is sold then gain or loss on the sale of the…

Q: Show the calculation of the amount of gain or loss to be recognized by Susan Co. from the exchange.

A: Depreciation:   Depreciation refers to the reduction in the monetary value of a fixed asset due…

Q: Mazaya Company has decided to sell one of its old machines on June 30, 2011. The machine was…

A: As per straight line method, the depreciation is computed by dividing the original cost less salvage…

Q: Bonita Industries purchased a new machine on May 1, 2012 for $561600. At the time of acquisition,…

A: Calculate the loss recognized from the sale of machine:

Q: The Joyful Company purchased a machine on November 1, 2019 for P296,000. At the time of acquisition,…

A: When an asset is purchased and used in the operation of the business, its value keeps on declining…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.