On January 3, 2019, Soju Co. purchased machinery. The machinery has an estimated useful life of eight years and an estimated salvage value of P30,000. The depreciation applicable to this machinery was P65,000 for 2021, computed by the sum-of-the-years'-digits method. The acquisition cost of the machinery was ?   a. P360,000 b. P390,000 c. P420,000 d. P468,000

Q: The following data relate to the acquisition of an equipment owned by BUSS Corporation. Acquisition…

A: Depreciation under Straight line  method cost - residual value / usefeel life of Asset $125000 -…

Q: Equipment was purchased at the beginning of 2019 for P204,000. At the time of its purchase, the…

A: Solution: Original annual depreciation = (Cost - Residual value) / useful life = (P204,000 -…

Q: FDN Company acquires a building on April 1, 2021 at a cost of P26,500,000. The building has an…

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

Q: Goliath Company purchased an equipment on January 2, 2017 for P3,000,000. At the date of…

A: Depreciation expense is an expense which is charged on fixed assets over the years the assets is…

Q: ROSE Company purchased machinery on January 1, 2020. It has an estimated useful life of four years…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: On January 3, 2019, Soju Co. purchased machinery. The machinery has an estimated useful life of…

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

Q: On June 30, 2021, Maroon sold for P230,000 a machine acquired in 2018 for P420,000. The accumulated…

A:

Q: The Fisher Company purchased a machine on October 1, 2018, for $18,000. At the time of acquisition,…

A: Depreciable cost=Cost-Salvage value=$18,000-$5,000=$13,000

Q: On January 1, 2018, an entity purchased a machine for P7,200,000 and depreciated it by the straight…

A: Since there are multiple questions, we will solve first for you. To get the remaining questions…

Q: On January 1, 2017, Jungkook Company purchased an equipment for P1,970,000. On this date, the…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for…

A: Loss on sale of equipment = Sale value - Net book value of equipment

Q: On January 1, 2018, Shopee Company purchased an equipment with an estimated useful life of 8 years.…

A: Solution: Under sum of years digit method of depreciation, depreciation is expected to be higher in…

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 January 2, 2015, ABC Company acquired equipment to be used in its manufacturing operations. The…

A: Under the SYD method, the depreciation rate percentage for each year is calculated as the number of…

Q: Coronado Industries purchased a machine on July 1, 2020, for $960000. The machine has an estimated…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an…

A: Answer) Calculation of Revaluation Surplus Revaluation Surplus = Fair Value of Equipment on January…

Q: On January 3, 2019, Soju Co. purchased machinery. The machinery has an estimated useful life of…

A: Sum of Years Digit = [n (n+1)/2]  here n = total life of assets = 8 years Therefore Sum of Years…

Q: On January 1, 2018, an entity purchased a machine for P7,200,000 and depreciated it by the…

A: COST OF PURCHASE OF MACHINE = P7200000 USEFUL LIFE OF ASSET = 8 YEARS METHOD OF DEPRECIATION USED =…

Q: On December 31, 2020, RJ Co. had delivery equipment in the total cost of P1,000,000.00 and…

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

Q: USK COMPANY purchased a wood cutter on September 1, 2019 for P652,000. At the time of acquisition,…

A: solution: given: purchase price (cost )     =P652,000 useful life           =14 years residual value…

Q: King Company purchased a machine on July 1, 2018 for P600,000. The machine has an estimated useful…

A: Depreciation means the fall in value of assets because of wear and tear , usage , passage of time or…

Q: On January 1, 2021 the Emming Corporation purchased some machinery. The machinery has an estimated…

A: Depreciation is the reduction in value of asset over the period of time. It can be charged by…

Q: On January 3, 2018, Leni company acquired an item of property, plant and equipment at a cost of…

A: Non-Current assets that are held for sale need to be measured at " Fair value less cost to…

Q: On January 1, 2018, Jane Company purchased an equipment with an estimated useful life of 8 years.…

A: Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of the…

Q: Ventura Corporation purchased machinery on January 1, 2019 for ₱840,000. The company used the…

A: It has to be treated prospective. There is no cumulative effect. Therefore option d ₱0 is correct

Q: ABC Co. purchased machinery that was installed and ready for use on January 3, 2020, at a total cost…

A: Solution: Depreciation rate - SLM = 1/5 = 20% Depreciation rate- DDB = 20%*2 = 40% Cost of machine =…

Q: • June Corporation purchased equipment on 1/1/20 for $650,000. In 2020 and 2021, June depreciated…

A: Since the useful life and salvage value of asset has been revised, therefore, the remaining book…

Q: On July 1, 2020, Concord Corporation purchased factory equipment for $283000. Salvage value was…

A: Solution: Under Double declining balance method of depreciation, depreciation is based on double the…

Q: On January 1, 2019, Chiz Company acquired equipment to be used in its manufacturing operations. The…

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

Q: Gia Corporation purchased machinery on January 1, 2019 for ₱840,000. The company used the…

A: 1. It has to be handled prospectively, therefore there is no cumulative effect on tax. Answer is…

Q: On January 1, 2018, CRIMSON Company purchased machineries for $10,560,000 and depreciated it by the…

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

Q: On January 1, 2022, Proton Company purchased a new machine or P2,100,000. The new machine has an…

A: The time period depreciation refers to an accounting technique used to allocate the value of a…

Q: On January 1, 2021, Ding Company acquired an equipment with useful life of 8 years and P390,000…

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

Q: In January 2019, Winn Company purchased equipment at a cost on P5,000,000. The equipment has a…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: On September 19, 2020, Sunland Company purchased machinery for $478000. Salvage value was estimated…

A: Solution: Under sum of years' digits method of depreciation. Depreciation is based on sum of digits…

Q: On January 1, 2019, Ciara Corporation acquired an equipment to be used in its manufacturing…

A: Given information, Useful life =10 years Residual value =P50,000 Depreciation for the year 2021…

Q: On January 1, 2019, Fur Company purchased a machinery at a cost of P goods 21,000,000 with an…

A: Solution: DDB rate = (1/10)*2 = 20% Accumulated depreciation for 2019 and 2020 = (21000000*20%) +…

Q: Goliath Company purchased an equipment on January 2, 2017 for P3,000,000. At the date of…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Ventura Corporation purchased machinery on January 1, 2019 for P630,000. The company used the…

A: Net book value at the end of 2020 = Cost of the assets - accumulated depreciation under sum of digit…

Q: On January 1, 2019, Nobel Corporation acquired machinery at a cost of P600,000. Nobel adopted the…

A: Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets = (600000- 0) / 10…

Q: On December 1, 2019, Joy Corporation decided to dispose of an item of plant that is carried in its…

A: Fair value less cost to sell = Fair value on date of classification as held for sale - Estimated…

Q: Sheridan Company purchased equipment for $ 120000 on January 1, 2020, and will use the…

A:

Q: PIKACHU purchased an equipment for P540,000 on January 1, 2020. The equipment has an estimated…

A: Sum of year digit method is a depreciation method where the depreciation for the year is calculated…

Q: Vaughn Company purchased a machine on January 1, 2019, for $59000 with an estimated salvage value of…

A: Depreciation is charged on the assets indicating the decrease in the value of the asset.…

Q: Sta Elena Construction & Development Corporation purchased a construction crane on January 1, 2019…

A: Introduction: If carrying value of an asset is more than the recoverable amount then the asset is…

Q: On January 1, 2020, Miller Company purchased a machine for P2,750,000. The machine was depreciated…

A: Working: Total sum of 10 years = 1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9 + 10 = 55 years Sum of Remaining…

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: On July 1, 2019, AXS COMPANY acquired an asset for P1,312,500. The asset is being depreciated over a…

A: solution: given: purchase price (cost )     =P1312500 useful life           =6 years residual value…

Q: REPTILE COMPANY acquired a machine on January 1, 2018 for P5,250,000. It was to be depreciated using…

A:

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.