Problem 11 Digimon Company owned three properties which are classified as investmentproperties. Details of the properties are as follows:Property 1Property 2Property 3Initial cost2,700,0003,450,0003,300,000Fair valueDec. 31, 20223,200,0003,050,0003,850,000Fair valueDec. 31, 20233,500,0002,850,0003,600,000Each property was acquired at the beginning of 2017 with a useful life of 25 years.Compute for the total carrying amount to be reported as investment property on December 31,2023 assuming the policy is to use:a. The cost model Problem 9Mel Company acquired a new machinery On August 15, 2022. The following data are available:P 1,400,00020,00040,00015,00050,00030,000Invoice priceCash discount available but not taken on purchaseFreight paid on the new machineryCost of removing the old machineryInstallation cost of the new machineryTesting cost before the new machinery was put intoregular operationProceeds from the sale of samples produced duringtestingCost of training employees which improved theirefficiencyLoss on premature retirement of the old machineryEstimated cost of manufacturing similar machinery inthe entity's own plant, including overheadCompute for the cost of the new machinery5,00010,0005,0001,300,000

From the beginning of 2017 till dec 31, 2022 , 6 years has been completed.6 years depreciation has…

Problem 11 Digimon Company owned three properties which are classified as investment properties. Details of the properties are as follows: Property 1 Property 2 Property 3 Initial cost 2,700,000 3,450,000 3,300,000 Fair value Dec. 31, 2022 3,200,000 3,050,000 3,850,000 Fair value Dec. 31, 2023 3,500,000 2,850,000 3,600,000 Each property was acquired at the beginning of 2017 with a useful life of 25 years. Compute for the total carrying amount to be reported as investment property on December 31, 2023 assuming the policy is to use: a. The cost model

Problem 11 Digimon Company owned three properties which are classified as investment properties. Details of the properties are as follows: Property 1 Property 2 Property 3 Initial cost 2,700,000 3,450,000 3,300,000 Fair value Dec. 31, 2022 3,200,000 3,050,000 3,850,000 Fair value Dec. 31, 2023 3,500,000 2,850,000 3,600,000 Each property was acquired at the beginning of 2017 with a useful life of 25 years. Compute for the total carrying amount to be reported as investment property on December 31, 2023 assuming the policy is to use: a. The cost model

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 44E: Cost of a Fixed Asset Colson Photography Service purchased a new digital imaging machine on April 15...

See similar textbooks

Similar questions

2. Calculate the total depreciation expense to be recorded on Machine # 5027 for 2023. Total Depreciation expense
Sepreciation Caict ssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false MSU login O Digital University .. O Tenant Portal - Login 国Reac eBook Show Me How E Print Item Units-of-Activity Depreciation A truck acquired at a cost of $250,000 has an estimated residual value of $15,000, has an estimated useful life of 47,000 miles, and was driven 3,800 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. a. The depreciable cost b. The depreciation rate per mile c. The units-of-activity depreciation for the year 5:39 AM 36% 4°F A @ O E O 12/17/2021 24 & 4. 6. 7. 81 近

Cost of a Fixed Asset Colson Photography Service purchased a new digital imaging machine on April 15 for $11,200. During installation Colson incurred and paid in cash the following costs: Colson also paid $160 to replace a bracket on the digital imager that was damaged when one of Colsons employees dropped a box on it while it was being installed. Required: 1. Determine the cost of the digital imaging machine. 2. CONCEPTUAL CONNECTION Explain why you included or excluded the $160 bracket replacement cost.
A elearning.act.edu.om Muscat LLC purchased a machine on 1st January, 2019 for OMR 250,000. The rate of depreciation is 20% p.a. under straight line method. Replacement Cost of the machine on 31st December,2019 was OMR 350,000 and on 31st December, 2020 was OMR 500,000. The company wishes to follow Current Cost Accounting rather than the Historical Cost Accounting. a. What is the amount of Depreciation Adjustment? b. What is the amount of Additional Depreciation? C. What is the amount of Back Log Depreciation?
MindTap- Cengage Leaming CengageNOWv2| Online teachin x n/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress3false Q * G * O Mathison Company exchanged a worn-out tractor that had cost $30,000 and was half depreciated for a new tractor with a fair value of $12,000. Mathison paid an additional $4,500 cash. The transaction lacked commercial substance. Required: Compute the amount at which Mathison should record the new tractor. Check My Work 1 more Check My Work uses remaining Previous Next %24
* CengageNowv2 |Online teachin X +. ignment/takeAssignmentMain.do?invoker%3&takeAssignmentSessionLocator=&inprogress=false eBook Show Me How Calculator Print Item Entries for sale of fixed asset Chart of Accounts First Question Journal Instructions Equipment acquired on January 8 at a cost of S168,000 has an estimated useful life of 18 years, has an estimated residual value of $15,000, and is depreciated by the straight-line method. A. What was the book value of the equipment at December 31 the end of the fourth year? B. Assuming that the equipment was sold on April 1 of the fifth year for 5125,000, journalize the entries to record (1) depreciation for the three months until the sale date and (2) the sale of the equipment.
y Home CengageNOWv2 | Online teachin x takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogressfalse eBook Show Me How Calculator Print Item Partial-Year Depreciation Equipment acquired at a cost of $105,000 has an estimated residual value of $12,000 and an estimated useful life of 10 years. It was placed into service on May 1 of the current fiscal year, which ends on December 31. a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Depreciation Year 1 %24 6,200 Year 2 b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method. Depreciation Year 1 Year 2 Feedback TCheck My Work Asset cost minus residual value equals depreciable cost Book value is the asset cost minus accumulated depreciation. If an asset is used for only part of a year the depreciation is prorated based on the number of months the asset is in service.…
Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine # 5027. Machine #5027 Component Single metal housing Motor Blade View transaction list Date of purchase Jan. 12/21 Jan. 12/21 Jan. 12/21 Journal entry worksheet < *SL = Straight-line; DDB = Double-declining-balance On January 7, 2023, the machine blade cracked and it was replaced with a new one costing $11,200 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $1,000 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2023, it was determined that the useful life on the metal housing should be increased to a total of 17 years instead of 15 years and that the residual value should be increased to $9,000. Required: 1. Prepare the entry to record the purchase of the replacement blade. 1 Depreciation Method" SL DDB SL 2 Cost $ 42,000 30,000 10,200 $ 82,200 Est.…
Acquisition Cost of Long-Lived Asset The following data relate to Derrick Construction's purchase of a front-end loader: Invoice price, terms 2/10, n/30 F.O.B shipping point, freight collect $32,000 Sent a check for the front loader, one week later 31,360 Cost of printing company logo on machine 240 Freight paid 330 Cost of insurance coverage for one year 375 New Battery (needed to prepare the machine for its intended use) 180 Hired new employee to operate it at $20 per hour; the employee spent one morning (eight hours) practicing with the machine and went to work at the construction site that afternoon. Calculate the amount at which the front-end loader should be reported on the company's balance sheet. Acquisition Cost = $Answer
Question Content Area A used machine with a purchase price of $36,814, requiring an overhaul costing $9,591, installation costs of $6,837, and special acquisition fees of $34,674, would have a cost basis of a.$139,018 b.$87,916 c.$36,814 d.$46,405
Acquisition Cost of Long-Lived Asset The following data relate to Derrick Construction's purchase of a front-end loader: Invoice price, terms 2/10, n/30 F.O.B shipping point, freight collect $32,000 Sent a check for the front loader, one week later 31,360 Cost of printing company logo on machine 240 Freight paid 330 Cost of insurance coverage for one year 375 New Battery (needed to prepare the machine for its intended use) 180 Hired new employee to operate it at $20 per hour; the employee spent one morning (eight hours) practicing with the machine and went to work at the construction site that afternoon. Calculate the amount at which the front-end loader should be reported on the company's balance sheet.
m/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSession Locator-assign... eBook Show Me How A ✩ Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $112,500. The equipment was expected to have a useful life of 3 years, or 22,500 operating hours, and a residual value of $4,500. The equipment was used for 9,000 hours during Year 1, 6,750 hours in Year 2, and 6,750 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the 3 years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the 3 years by each method. Do not round intermediate calculations when determining the depreciation rate. Round the final answers for each year to the nearest whole dollar. Year Year 1 Year 2 Year 3 Total Straight-Line Method Depreciation Expense Units-of-Activity Method 2. What…