Use the following information for the next four items: Information on Mix Co.'s equipment on June 30, 20x8 is shown below: Equipment (at cost) Accumulated depreciation 500,000 150.000 350.000 The equipment consists of two machines, Machine A and Machine B. Machine A has a cost of P300,000 and a carrying amount of P180,000. Machine B has a cost of P200,000 and a carrying amount of P170,000. Both machines are measured using the cost model and depreciated on a straight line basis over a ten-year period. On December 31, 20x8, Mix Co. decided to change from the cost model to the revaluation model. Information on this date follows: Fair values Remaining useful life P180,000 Machine A Machine B 6 years 5 years P155,000 On June 30, 20x9, Machine A and Machine B have fair values of P163,000 and P136,500, respectively, and remaining useful lives of 5 years and 4 years, respectively. The tax rate is 30%. 12. How much is the depreciation expense for the fiscal year ended June 30, 20x9? 13. How much is the revaluation surplus on December 31, 20x8?, 14. How much is the carrying amount of the equipment on June 30, 20x9?,

Use the following information for the next four items: Information on Mix Co.'s equipment on June 30, 20x8 is shown below: Equipment (at cost) Accumulated depreciation 500,000 150.000 350.000 The equipment consists of two machines, Machine A and Machine B. Machine A has a cost of P300,000 and a carrying amount of P180,000. Machine B has a cost of P200,000 and a carrying amount of P170,000. Both machines are measured using the cost model and depreciated on a straight line basis over a ten-year period. On December 31, 20x8, Mix Co. decided to change from the cost model to the revaluation model. Information on this date follows: Fair values Remaining useful life P180,000 Machine A Machine B 6 years 5 years P155,000 On June 30, 20x9, Machine A and Machine B have fair values of P163,000 and P136,500, respectively, and remaining useful lives of 5 years and 4 years, respectively. The tax rate is 30%. 12. How much is the depreciation expense for the fiscal year ended June 30, 20x9? 13. How much is the revaluation surplus on December 31, 20x8?, 14. How much is the carrying amount of the equipment on June 30, 20x9?,

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Description: Use the following information for the next four items:Information on Mix Co.'s equipment on June 30, 20x8 is shown below:Equipment (at cost)Accumulated depreciation500,000150,000350.000The equipment consists of two machines, Machine A and Machine B.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 3MCQ: When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash...

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