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- The following data relate to store equipment of the Company for 2021:· Store Equipment, 2020- P1,450,000· Store Equipment, 2021- P1,750,000· Accumulated Depreciation, 2020- P580,000 · Accumulated Depreciation, 2021- 600,000Store equipment costing P300,000 was sold for P210,000, resulting in a gain of P30,000.The depreciation expense on store equipment for 2021 isBebe Co. purchased equipment costing P560,000 on March 5, 2021. How much would be the claimable input VAT on the second quarter of 2021?Kansas Enterprises purchased equipment for $80,500 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $6,600 at the end of ten years. Using the straight-line method, depreciation expense for 2021 would be:
- Suppose a company spends $100,000 on research and development in 2021. As a result of the products developed, additional revenue is generated over the next five years totaling $600,000. When is the cost of the research and development in 2021 recognized as an expense? Multiple Choice Evenly over the period 2022-2026. Full amount in 2026. Evenly over the period 2021-2025. Full amount in 2021.The carrying value of equipment was R400 000 on 01 March 2019, the start of the financial year, and R500 000 on 29 February 2020. Depreciation for the year ended on 29 February 2020 amounted to R40 000. Which one of the following represents the cost of the equipment that was purchased during the financial year? A) R100 000 B) R60 000 C) R360 000 D) R140 000A company’s policy is to charge depreciation on plant and machinery @20% per year on cost, with proportional depreciation for items purchased during the year and no depreciation on items sold. The company’s Plant and machinery at cost account for the year ended 30 Sept 2019 is as below: Plant and Machinery 2018 £ 2019 01-Oct balance 200,000 30-Jun Disposal 40,000 2019 01-Apr Bank 50,000 30-Sep 210,000 250,000 250,000 Required: Calculate the depreciation charge for the plant and machinery for the year ended 30 September 2019 a. £50,000 b. £37,000 c. £42,000 d. £40,000
- Bartov Corporation agreed to build a warehouse for $2,500,000. Expected (and actual) costs for the warehouse follow : 2019, $400,000; 2020, $1,000,000; and 2021, $500,000. The company completed the warehouse in 2021. Compare revenues, expenses, and income for each year 2019 through 2021 assuming that Bartov’s performance obligation for the warehouse is fulfilled over time and that the costs incurred provide a close approximation of the value conveyed to the customer.Aluminium Manufacturing Co., income for the year 2018 and 2019 were OMR 400,000 and 600,000 respectively. The following pretax earnings are depreciation on plant and machinery every year OMR 200,000 and extraordinary gain 2019 OMR 150,000. What is the expected average future earnings. Select one: a. OMR 325,000 b. OMR 275,000 c. OMR 375,000 d. OMR 225,000ABC Ltd has the following land and buildings in its financial statements as at 30 June 2022: Residential land, at cost 2,260,000 Factory land, at valuation 2020 2,034,000 Buildings, at valuation 2020 1,808,000 Accumulated depreciation -226,000 At 30 June 2022, the balance of the revaluation surplus is $904 000, of which $678 000 relates to the factory land and $226 000 to the buildings. On this same date, independent valuations of the land and buildings are obtained. In relation to the above assets, the assessed fair values at 30 June 2022 are: Residential land, previously recorded at cost 2 486 000 Factory land, previously revalued in 2020 1 582 000 Buildings, previously revalued in 2020 2 034 000 Required: Provide the journal entries to account for the revaluation on 30 June 2022. ABC Ltd classifies the residential land and the factory land as different classes of assets.
- Zent construction has an contract for $3,700,000. Other details follow:Costs incurred during the year= $1,800,000Estimated costs to complete as of December 31= 1,200,000Billings during the year=1,650,000Collections during the year= 975,000 It uses the percentage of completion method For calendar 2020, what should report gross profit of?Mercury Inc. purchased equipment in 2019 at a cost of $383,000. The equipment was expected to produce 490,000 units over the next five years and have a residual value of $40,000. The equipment was sold for $199,100 part way through 2021. Actual production in each year was 2019 = 70,000 units; 2020 = 111,000 units; 2021 = 56,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date. Required: Calculate the gain or loss on the sale. Prepare the journal entry to record the sale. Assuming that the equipment was instead sold for $235,100, calculate the gain or loss on the sale. Prepare the journal entry to record the sale in requirement 3.Rayne Inc. purchased equipment in 2019 at a cost of $428,000. The equipment was expected to produce 580,000 units over the next five years and have a residual value of $33,000. The equipment was sold for $252,600 part way through 2021. Actual production in each year was: 2019 = 83,000 units; 2020 = 133,000 units; 2021 = 64,000 units. Rayne uses units-of-production depreciation, and all depreciation has been recorded through the disposal date. Required:1. Calculate the gain or loss on the sale.2. Prepare the journal entry to record the sale.