RS Inc. acquired a delivery truck for P2,100,000 on January 1, 2018. The delivery truck has useful life of 5 years and residual value of 100,000 and to be depreciated using SYD method. On January 1, 2020, BRS decided to use straight line method for depreciating the truck and determined that the remaining useful life of the truck as of this date should be 4 years. The residual value remains the same. On July 1, 2021, the delivery truck was sold for P450,000 and BRS Inc. incurred disposal cost of P50,000. What is the carrying value of the delivery truck on December 31, 2020? P800,000 P633,333 P700,000 P500,000 Using the same data, what is the gain/(loss) on disposal to be recognized on July 1, 2021? (P100,000) (P200,000) P100,000 P50,000

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: Birkey Company purchased equipment on January 1, 2020, at a total cost of $99,000. The machinery’s…

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

Q: Archer Company purchased equipment in January of 2011 for P90,000. The equipment was being…

A: Depreciation Expense (Straight Line Method) = Cost - Salvage ValueUseful Life of an Asset

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: On January 1, 2018, Wasson Company purchased a delivery vehicle costing $40,000. The vehicle has an…

A: The straight-line method is a method of computing depreciation each year. This method is also known…

Q: On October 1, 2017, ABC Company purchased a delivery equipment for P1,000,000. It had an estimated…

A: Solution : Given Purchase date October 1 2017 Purchase cost 1,000,000 Estimated…

Q: Gundrum Company purchased equipment on January 1, 2015 for $920,400. The equipment was expected to…

A: Working Note 1:Compute accumulated depreciation.

Q: On January 1, 2018, Alan Company purchased an equipment for P8,000,000. The equipment is depreciated…

A: Gain is the amount of money earned on the sale of assets.

Q: Martinez Corporation purchased machinery on January 1, 2022, at a cost of $268,000. The estimated…

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

Q: On July 1, 2016, Farm Fresh Industries purchased a specialized delivery truck for $225,000. At the…

A: Depreciation is wear and tear of assets. When assets is sold out , we need to find out the book…

Q: On January 1, 2018, Kefauver Company purchased a piece of equipment for $375,000. The equipment had…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Wildhorse Co. purchased a new machine on October 1, 2022, at a cost of $88,000. The company…

A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…

Q: On January 2, 2020, VSG purchased a transportation equipment costing P2,400,000. The new asset has…

A: Accumulated depreciation, December 31, 2022 = P2,400,000 x 2/8 = P600,000 Carrying value, December…

Q: On January 1, 2015, Similar Corp purchased machinery for $112,200 that was expected to have a useful…

A: Prior Depreciation per annum = ($112200 - $8400) / 8 years = $12975 Revised depreciation per annum…

Q: Grumpy Inc purchased a machine on January 1, 2021, at a cost of $120,000. The machine was originally…

A: Depreciation is the reduction in the value of an asset due to normal wear and tear, passage of time,…

Q: On January 1, 2017, RIP Isabel Granada Company purchased a machinery for P600,000, with an estimated…

A: 1. Impairment loss is carrying amount below the recoverable amount.  depreciation calculated based…

Q: On Oct. 1, 2020, Shaw Company purchased a machine for P1,260,000 that was placed in service on Nov.…

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

Q: On January 1,2013, Edition Company purchased an equipment for P1,970,000. On this date, the…

A: Depreciation is an expense which usually charged on the fixed or non-current assets over the years…

Q: On January 1, 2017, Rabbit Company purchased a machinery for P600,000. The machinery had been…

A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…

Q: Brave Corporation acquired equipment on January 3, 2018 at a cost of P100,000. The estimated useful…

A:

Q: On July 1, 2016, Farm Fresh Industries purchased a specialized delivery truck for $126,000. At the…

A: Annual depreciation = (Cost of truck - Residual value) / Life of the truck = ($126,000 - $30,000) /…

Q: Required a. Prepare the journal entry(ies) necessary to record the depreciation expense on the…

A: Depreciation: A charge on the fixed assets of the company that reduces the value of the asset is…

Q: Hotroad LLC acquired a new asphalt mixing plant for $500,000 on 1st of January 2016. The…

A: Depreciation is referred to as an amount which is charged by the business on its tangible…

Q: Tamarisk Company purchased a machine on January 2, 2020, for $725,400. The machine has an estimated…

A:

Q: On January 1, 2021, Morrow Inc. purchased a spooler at a cost of $40,000. The equipment is expected…

A: Depreciation expense per unit  = (Cost- residual value)/Total expected units to produce

Q: The Vladimir Corporation purchased an equipment on January 1, 2020. The machine cost P 92,000, with…

A: Depreciation is used to denote a decrease in the value of fixed assets. Depreciation is the…

Q: On January 1, 2018, Morrow Inc. purchased a spooler at a cost of $40,000. The equipment is expected…

A: Depreciation refers to the permanent/fall/decline/decrease in the value of asset pertaining to many…

Q: ABC, Inc. purchased a crane on January 1, 2018, for P205,500. At the time of purchase, the crane was…

A: ABC, Inc. purchased a crane on January 1, 2018, for P205,500. At the time of purchase, the crane was…

Q: Tammy Company purchased a boring machine on January 12018 for P8, 100 000. The useful life of the…

A: Depreciation The purpose of using the Depreciation is to calculate the actual value of the machine…

Q: On January 2, 2022, Milk Tea Company acquired a building costing P6,000,000. Milk Tea Company…

A: Impairment Gain: An asset is said to have suffered an impairment if its value has been permanently…

Q: On January 2, 2017, Bangs Company purchased equipment costing P1,500,000. The estimated useful life…

A: As per IFRS 5, at the time of initial recognition of an asset as held for sale, asset shall be…

Q: On Jan 1, 2021, ABC Company acquired a machinery at a cost of P250,000. It was estimated to have a…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…

Q: Dewey Corporation purchased a machine for $340,000 on January 1, 2012. The machine had an…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

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 January 2, 2017, Union Co. purchased a machine for P264,000 and depreciated it by the…

A: Solution: Original annual depreciation using SLM = (Cost - Residual value) / useful life =…

Q: On January 1, 2018, Wasson Company purchased a delivery vehicle costing $40,000. The vehicle has an…

A: Depreciation = ( Cost - Residual value )×Number of units produced during the yearEstimated total…

Q: n January 1, 2018, World Inc. purchased five machines at a cost of $14,000 each. The company adopted…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: On April 1, 2018, Magnum Company purchased a delivery equipment for $88,000, with an expected useful…

A: The depreciation is an expense charged on fixed asset as the reduction in the value of fixed asset…

Q: On January 1, 2019, Woodstock, Inc. purchased a machine costing $42.400. Woodstock also paid $2.200…

A: Depreciable cost=Cost+installation-Residual value=$42,400+$2,200-$6,200=$44,600-$6,200=$38,400

Q: Waterway Industries purchased machinery on January 2, 2015, for $860000. The straight-line method is…

A: Determine the book value at the end of 2020.

Q: On December 31, 2019, WITT Inc. has a building which has a cost of P42,000,000 and carrying amount…

A: A fixed asset is a non-current asset acquired by a business by making huge capital expenditures. A…

Q: MKG, Inc. paid $400,000 for a piece of equipment that is expected to have a 12 year useful life. In…

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

Q: Bolan Company purchased a tooling machine on January 3, 2014 for $500,000. The machine was being…

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

Q: ABC, Inc. purchased a crane on January 1, 2018, for P205,500. At the time of purchase, the crane was…

A: Under straight line method of recording depreciation, equal amount of depreciation expense is…

Q: Spiral Company uses the sun-of-the years’ digits method to depreciate equipment purchased in January…

A: Solution: Depreciation is a reduction in the value of an asset over time, due to normal wear and…

Q: Tatsuo Corporation purchased farm equipment on January 1, 2019, for $287,000. In 2019 and 2020,…

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

Q: On July 1, 2020, New Orleans Corporation purchased equipment at a cost of P340,000. The equipment…

A: Depreciation rate = ( 100 / Useful life ) x 2

Q: Waterway Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of…

A: Depreciation - It is the method of allocating the cost of physical or tangible assets over its…