GOLF Company changed from straight line depreciation to double declining balance method at the beginning of 2022. The plant asset originally cost P1,500,000 in 2017. Using the straight-line depreciation, periodic depreciation amounts to P60,000.
Q: taxable income (loss) -2,900,000
A: Firstly let us calculate the profit of XYZ corp. Particulars Amount…
Q: The contribution margin per unit is P5, while the direct fixed costs are P30,000 and the allocated…
A: The break-even formula is calculated by dividing the total fixed costs associated with production by…
Q: Grouper Dairy leases its milking equipment from Monty Finance Company under the following lease…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: 6. Which of the following
A: A non-financial asset plays an important role in determining the market value of the company and the…
Q: Statement 1. A private market is one like the Philippine Stock Exchange, where transactions are…
A: Derivatives are contracts between two or more parties that have a value based on an agreed…
Q: Explain the below elements of cash outflows: a- Purchase of New Equipment. b- Investment in…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Rationale for nonrecognition includes which of the following? I. A refinement of the realization…
A: Non-recognition of an event and transaction in the current year depends on various circumstances…
Q: Harvest Inc. produces and sells a single product. The selling price of the product is $200.00 per…
A: Introduction: Break even units: Break even means the level where there is no profit nor loss to the…
Q: ASSIMILATION You and your two friends have put up a small editorial service company. As the only…
A: Trial balance means the statement prepared from ledger account where all debit and credit balance…
Q: Rosilyn trades an old parcel of land with an adjusted basis of $13,000 and an outstanding loan…
A: The amount realized on the transaction means the total consideration received whether by way of cash…
Q: 3. An equipment with a price of P650,000, has an economic life of 5 years and a salvage value of P…
A: Solution.. Cost = P650,000 Life = 5 years Rate of depreciation = 200% ÷ life = 200% ÷ 5 =…
Q: 6. Which of the following service contributions would enhance a nonfinancial asset? A. A roofing…
A: A nonfinancial asset is one whose value is derived from its physical characteristics. Property…
Q: Tater and Pepper Corp. reported COGS for 2021 of $27 million. Tater and Pepper listed $6.0 million…
A: Inventory turnover is the amount of time that passes between the day a company buys an item and the…
Q: Under Section 1031 a personal residence or an automobile used solely for personal purposes will…
A: A 1031 exchange is provision of the IRC that allows the business to defer the federal tax on some…
Q: On January 1, 20x1, Row Co. leased a machine from Boat, Inc. Information on the lease is as follows…
A: Lease means giving out the assets by lessor to lessee to use that assets in return of rent.…
Q: What is the quantity of units available for sale for the year?
A: Units available for sale is the number of units which the company is having or had available for the…
Q: Exercise E Analysis of Hair Care Company's citrus hair conditioner reveals that it is losing $5,000…
A: The gap between revenues and expenses is referred to as net income. This number, together with gross…
Q: Required: Explain to your friend the principal requirements of MFRS 116 Property, Plant and…
A: The principal requirements of MFRS 116 and the measurement model of P P E and its subsequent…
Q: . Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00…
A: Solution:- 1)Calculation of Economic value added as follows under:- Economic value added gives true…
Q: Expected sales 10,000 units at $8 each Variable costs $5 per unit Fixed Costs $21,000 Assume…
A: Unit Contribution margin = Selling price - Unit Variable cost = $8 - $5 = $3
Q: the answers to the four questions at the bottom under the statement table. Oakdale Fashions,…
A: The Current Corporate tax rate is 21%. Generally corporate taxes are fixed rate irrespective of the…
Q: Suppose the common stock of United Industries has a beta of 1.09 and an expected return of 13.9…
A: Introduction: When it comes to the stock market, investors need to understand every term and phrase.…
Q: total wine sa Calculate the WET payable and complete the BAS extract Summary
A: WET is the acronym of wine equalization tax which is charged on the supply of wines it is a sort of…
Q: The following is a record of Pervis Ellison Company's transactions for Boston Teapots for the month…
A: Introduction: When calculating the cost of maintaining inventory, organisations might use one of…
Q: Accounting Explain five actions the audit firm would take as part of the client screening process,…
A: An audit is an inspection or inspection of various ledgers by a certified accountant, followed by a…
Q: In 2021, Dunder Mifflin's warranty deduction for tax purposes exceeded its warranty expense for book…
A: Income Tax Expense = $42800 x 27% = $11556.00 Income Tax Payable = ($42800 - $654) x 27% =…
Q: In 2022, Dunder Mifflin Inc. had one temporary difference of $398 that resulted in a deferred tax…
A: Temporary difference means the difference between Accounting Income and taxable income which is…
Q: 22. Mr. and Mrs. Ramirez have 4 children and have decided that they need a bigger house. They intend…
A: Interest Rate- The interest rate is the sum a lender charges a borrower and is a proportion of the…
Q: c) In order to take his family to a show, Sergio will have to purchase 2 adult tickets and 3 child…
A: Total cost means the amount incurred to do anything. For example , to produce a product , to go for…
Q: ou are evaluating the balance sheet for SophieLex’s Corporation. From the balance sheet you find the…
A: Ratios are used to measure the financial situation of the business entity. The management can also…
Q: Several years ago, Sammy Inc. acquired a 709% interest in Lavender Co. The book values of Lavender's…
A: Cost of goods sold: - Costs of goods sold is the value of total goods sold during a particular…
Q: The following transactions pertain to a branch’s first month’s operations: a. The home office sent…
A: Journal entries is the transactions, which helps us to keeping or making records of transactions of…
Q: Find the payment necessary to amortize a 4% loan of $900 compounded quarterly, with 15 quarterly…
A: Quarterly compounding is a form of compounding in which interest is earned every quarter and such…
Q: (hour) 5.60 5.76 20 3.00 3.04 30 3.80 3.88 35 4.80 5.00 15
A: Given as,
Q: In your own words explain the term “identifiable” as per IAS38 – Intangible assets.
A: Introduction:- Intangible assets are expected to generate economic for more than one year or one…
Q: Jefferson Company is considering investing $33,000 in a nev last five years and to have a salvage…
A: The expense of borrowing money is called interest expenditure. For using the lender's funds, the…
Q: Twitter is an online news and social networking company. In its 2021 annual report, the company…
A: Here discuss about the details of valuation allowance which are created into the business entity…
Q: Under a Roth IRA, 1. any taxpayer may contribute and deduct up to $6,000 deductible contributions…
A: A Roth IRA is an Individual Retirement Account to which you contribute after-tax dollars
Q: SadBoi, Inc. produces high quality water-proof tissue papers. Mr. Ramos, Sadboi's Managerial…
A: Break-even point: - Break-even point is the point where total sales of the company is equal to the…
Q: A. Interest income of a resident alien from an B. Marriage fees, baptismal offerings received by a…
A: b. c and d are exempt from final tax
Q: An individual who has automobile insurance from a certain company is randomly selected. Let Y be the…
A: pmf stands for Probability mass function and is one of the most important tools in statistics
Q: Accounting Muckingjay Inc. opened in 2022. The company reported sales revenue of $486,000 and…
A: The necessary journal entry to record the Net operating loss to be carried shall be Deferred tax…
Q: Chairs.com In March produced and sold 1,400 dining chairs (the company’s only product). The…
A: Variable manufacturing costs : It includes direct material, direct labor and variable manufacturing…
Q: Determine the following as a result of your audit: 1. How much is the correct balance of accounts…
A: Here discuss about the details of adjustment made in the balance of accounts payable and profit…
Q: The unit amount of three different production costs for Juanito Corporation, are as fol Production…
A: Cost X unit cost is same for both levels of production. Cost Y unit cost and total cost changes.…
Q: Company provided the balance sheet below: Cash 225 Accounts payable 150 Accounts receivable…
A: The acid test ratio is calculated as quick assets divided by current liabilities.
Q: An engineering analysis by net present worth (NPW) is to be made for the purchase of two devices A…
A: Net Present Worth: It is the difference between the present values of cash inflows and cash…
Q: Aji who is now 25 years old, wants to buy a retirement plan starting at the age of 55 year with an…
A: In the given question, the future value of annuity is $ 3,000,000. Annual Payments will be paid…
Q: Prepare the Statement of Changes in Equity tor the year ended 28 February 2022.
A: Statement of changes in equity is the statement which shows about the fluctuations which has been…
Q: Tax Due Under OSD and Itemized Deductions Problem For 2021, Lili Corp., a domestic corporation, has…
A: Step 1: A deduction is a reduction in the taxable income of an individual taxpayer or corporation…
What amount of
Step by step
Solved in 4 steps
- On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the following three situations: 1. Machine X was purchased for 100,000 on January 1, 2015. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 45,000. The estimated residual value remains at 10,000, but the service life is now estimated to be 1 year longer than originally estimated. 2. Machine Y was purchased for 40,000 on January 1, 2018. It had an estimated residual value of 4,000 and an estimated service life of 8 years. It has been depreciated under the sum-of-the-years-digits method for 2 years. Now, the company has decided to change to the straight-line method. 3. Machine Z was purchased for 80,000 on January 1, 2019. Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value is 8,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry for each situation to record the depreciation for 2020. Ignore income taxes.
- On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.Mustang Company changed from straight line depreciation to double declining balance method at the beginning of 2021. The plant asset originally cost P1,500,000 in 2016 using the straight-line depreciation. Periodic depreciation using the straight-line method is P60,000.On January 1, 2018, the Allegheny Corporation purchased machinery for $115,000. The estimated service life ofthe machinery is 10 years and the estimated residual value is $5,000. The machine is expected to produce 220,000units during its life.Required:Calculate depreciation for 2018 and 2019 using each of the following methods. Round all computations to thenearest dollar.1. Straight line2. Sum-of-the-years’-digits3. Double-declining balance4. One hundred fifty percent declining balance5. Units of production (units produced in 2018, 30,000; units produced in 2019, 25,000)
- Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $800,000. The residual value of the equipment was estimated to be $50,000 at the end of a five-year life. The equipment was sold on March 31, 2021, for $170,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. ces Required: 1. Prepare the journal entry to record the sale. 2. Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) General Journal No 1 Event 1 Cash Accumulated…Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $155,000. The residual value of the equipment was estimated to be $14,000 at the end of a five-year life. The equipment was sold on March 31, 2021, for $48,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required:1. Prepare the journal entry to record the sale.2. Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale.Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $800,000. The residual value of the equipment was estimated to be $50,000 at the end of a five-year life. The equipment was sold on March 31, 2021, for $170,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service.Required:1. Prepare the journal entry to record the sale.2. Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale.
- Al Qurum Enterprises purchased equipment for OR 72,000 on January 1, 2018. The equipment is expected to have a five - year life and a residual value of OR 6,000. Using the double - declining balance method, depreciation for 2018, and the book value at December 31, 2018, would be: Select one: Oa depreciation 28,800 and book value 37,200. b depreciation 28,800 and book value 43,200. c. depreciation 26,400 and book value 45,600 d.depreciation 26,400 and book value 36,600On January 1, 2024, the Allegheny Corporation purchased equipment for $283,000. The estimated service life of the equipment is 10 years and the estimated residual value is $19,000. The equipment is expected to produce 276,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. 150% declining balance.Muscat chocolates Company purchases equipment on January 1, 2017, at a cost of OMR 100000. The asset is expected to have a service life of 4 years and a residual value of OMR 20000. Instructions: (a) Calculate the annual rate of depreciation. Amount of depreciation for each from 2017 to 2019 using the straight-line depreciation method. (b) Calculate the amount of depreciation for each from 2017 to 2019 using the reducing balance method. (c) What would be the difference in the depreciation expense for the year ending 31st December 2019 based on using either the straight-line method or the reducing-balance method?
