The December 31, 2020 and 2019 comparative financial statements of ABC Company showed equipment with an original cost of P379,000 and P344,000 with accumulated depreciation of P153,000 and P128,000, respectively. During 2020, the company purchased an equipment costing P50,000 and sold equipment with carrying value of P9,000. What amount should the company report as depreciation expense for the year ended December 31, 2020?

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A: 1. Depreciation for 2020 = (Beginning total cost of equipment + cost of equipment purchased ) x…

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Q: Easy Company acquired an equipment on January 1, 2020 for P5,000,000. Depreciation is computed using…

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A: Depreciation is the wear and tear of the asset. It occurs due to: Passage of time Usage…

Q: The December 31, 2021 and 2020 comparative financial statements of ABC Company showed equipment with…

A: Depreciation is the allocation of cost of asset over the useful life of the asset. Accumulated…

Q: The following data relate to store equipment of the Company for 2021: ·       Store Equipment,…

A: Here in this question, we are required to calculate depreciation expense of the store equipment for…

Q: Company showed equipment with an original cost pf P379,000 and P344,000 with accumulated…

A: Depreciation is an expense which is charged on depreciable assets. Depreciation is the reduction in…

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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: On January 1, 2021, the statement of financial position of X Incorporated shows total assets of 30…

A: As per the standard of Non-current assets held for sale and discontinued operation, depreciation of…

Q: Fogg Corporation's comparative balance sheet at December 31, 2020 and 2019 reported accumulated…

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

Q: On December 31, 2020, Flounder Inc. has a machine with a book value of $1,071,600. The original cost…

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A: Net book value after impairment on Dec 31, 2020 = Book value - accumulated depreciation - impairment…

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A: >Depreciation is the amount that gets expensed over the life of the asset. >This amount is…

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

Q: At December 31, 2020, the following existed on the records of Chogiwa Co.:  Fixed Assets: $860,000…

A: Accumulated Depreciation on assets sold = originally cost - written down value = $80,000 - $37,000 =…

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A: Impairment cost is reduced carrying value of an asset as compared to declined fair value.

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Q: What amount was reported on the statement of cash flows as “cash flow from sale of equipment”

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A:

Q: In 2020, Geiger Co. sold equipment that had cost P294,000 for P176,400. This resulted in a gain of…

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A: Formula to calculate cash flow from sale of equipment:

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Q: On December 31, 2020, Riverbed Inc. has a machine with a book value of $1,410,000. The original cost…

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Q: ABC Company acquired an equipment on January 1, 2020 for P5,000,000. Depreciation is computed using…

A:

Q: What amount should the company report as depreciation expense for 2021

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Q: On June 30, 2020, Happy Corporation reported the following information: Equipment at cost…

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Q: The balance sheets of HIROE Inc. showed the following at December 31, 2020 and 2019: December 31,…

A:

Q: "YESORYES Corp.'s comparative balance sheet at December 31, 2020 and 2019 reported accumulated…

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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

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Q: At 30 June 2020, Harry Ltd has reported the following assets. Asset Carrying Amount ($) Useful Life…

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Q: A company’s annual report as at 31 December 2019 showed equipment part as follows: Equipment (cost)…

A: Working note: Computation of carrying amount of both the machines on June 30, 2020:

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A: Depreciation is charged against the value of fixed assets. It can be calculated by using the…

Q: The plant assets section of the comparative balance sheets of Anders Company is reported below.…

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.