MUCH IS THE BALANCE OF REVALUATION SURPLUS ON DECEMBER 31, 2020? HOW MUCH IS THE DEPRECIATION EXPENSE ON 2020?
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- HOW MUCH IS THE BALANCE OF REVALUATION SURPLUS ON DECEMBER 31, 2020?
- HOW MUCH IS THE
DEPRECIATION EXPENSE ON 2020?
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- On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a straight-line basis over a useful life of 10 years and used a residual value of $12,000. Chapmans depreciation expense for 2019 was $11,000. What was the original cost of the building? a. $98,000 b. $110,000 c. $122,000 d. $134,000Problem 27-10. (AICPA Adapted) e. On January 1, 2020, Domino Company purchased a new machine for P4,000,000. The new machine has an estimated useful life of eight years and the residual value was estimated to be P400,000. Depreciation was computed on the sum of the years' digits method. What is the carrying amount of the machine on December 31, 2021? а. 2,100,000 b. 2,500,000 с. 1,150,000 d. 3,300,000 CS Scanned with CamScanner
- 1 of nd Problem 27-1 (IAA) Amicable Company purchased a machine at a cost of P635,000 January 1, 2020. It was estimated that the machine would I have a residual value of P35,000. on The estimated useful life is 5 years, 60,000 service hours and 150,000 production units. Actual operations Service hours Unit produced 2020 14,000 34,000 2021 13,000 32,000 2022 10,000 25,000 2023 11,000 29,000 2024 12,000 30,000 Required: Prepare a depreciation table for the following methods: a. Straight line b. Service hours c. Production method 472 Problem 27-2 (IAA) Austere Company purchased machinery for P570,000 on July 1, 2020. It is estimated that it will have a useful life of 10 years, residual value of P20,000, production of 200,000 units and working hours of 50,000. The entity used the machinery for 3,000 hours in 2020 and 5,000 hours in 2021. The machinery produced 18,000 units in 2020 and 22,000 units in 2021. Required: Compute depreciation for 2020 and 2021: a. Straight line b. Working hours…Problem 27-10. (AICPA Adapted) On January 1, 2020, Domino Company purchased a new machine for P4,000,000. The new machine has an estimated useful life of eight years and the residual value was estimated to be P400,000. Depreciation was computed on the sum of the years' digits method. What is the carrying amount of the machine on December 31, 2021? a. 2,100,000 b. 2,500,000 c. 1,150,000 000 d 000 091 d. 3,300,000 000 061 Problem 27-11 (AICPA Adapted) 27 1903 Marta On January 1, 2018, Mogul Company acquired equipment to be used in the manufacturing operations. The equipment has an estimated useful life of 10 years and an estimated residual value of P50,000. 000 112 d The depreciation applicable to this equipment was P240,000 for 2020 computed under the sum of years' digits method. What was the acquisition cost of the equipment? a. 1,650,000 gasind b. 1,700,000 c. 2,400,000 d. 2,450,000 Problem 27-12 (AICPA Adapted) On April 1, 2020, Kingdom Company purchased new machinery for P3,000,000.…wh.ca/d21/le/content/126096/viewContent/7921257/View mitaltar CETIL Situation 4: On March 31, 2017, Wayside Corporation purchased a new piece of manufacturing equipment for $1,615,000. At that time, the estimated useful life of the equipment was five years, with a residual value of $325,000. On August 1, 2020, due to increased competition causing a decreased selling price for its product, Wayside decided to discontinue the product. By December 31, 2020, there was a formal plan in place to sell the equipment, and the equipment qualified for classification as held for sale. At December 31, 2020, the equipment's fair value less costs to sell was $260,000. Due to matters beyond Wayside's control, a potential sale of the equipment fell through in 2021, although consumer confidence in Wayside's product increased significantly because of reported defects in its competitors' products. The equipment remained classified as held for sale at December 31, 2021, when the equipment's fair value less…
- E11-1 Depreciation Methods Gruman Company purchased a machine for $220,000 on January 2, 2019. It made the following estimates: Service life 5 years or 10,000 hours Production 200,000 units Residual value $20,000 In 2019, Gruman uses the machine for 1,800 hours and produces 44,000 units. In 2020, Gruman uses the machine for 1,500 hours and produces 35,000 units. Required: 1. Compute the depreciation expense for 2019 and 2020 under each of the following methods: a. straight-line b. sum-of-the-years’-digits (round to the nearest dollar) c. double-declining-balance d. activity method based on hours worked e. activity method based on units of output 2. For each method, what is the book value of the machine at the end of 2019? At the end of 2020? 3. Next Level If Gruman used a service life of 8 years or 15,000 hours and a residual value of $10,000, what would be the effect on (a) depreciation expense and (b) book value under the straight-line, sum-of-the-years’-digits, and…Required information Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2] [The following information applies to the questions displayed below.] On October 1, 2021, the Allegheny Corporation purchased equipment for $233,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 420,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 2 2. Double-declining-balance. X Answer is not complete. Double-Declining-Balance Method Fraction of Depreciation Expense Depreciation Expense Choose Numerator: Choose Denominator: !! Year Fraction of Year Formula Cost Minus Residual Straight-line Rate Amount for 2021 Amount for 2022 2$ 2 X x 3/12 11,650 %3D $ 2 X 10 X % 44,270 %3DE9-20 Computing depreciation--three methods Crispy Fried Chicken bought equipment on January 2, 2018, for $33,000. The equip- ment was expected to remain in service for four years and to operate for 6,750 hours At the end of the equipment's useful life, Crispy's estimates that its residual value will be $6,000. The equipment operated for 675 hours the first year, 2,025 hours the sec ond year, 2,700 hours the third year, and 1,350 hours the fourth year Requirements pare a schedule of depreciation expense, acumulated depreciation, and book value per for the equipment under the three depreciation methods: straight-line, units- of-production, and double-declining-balance. Show your computations. Note: Thre year depreciation schedules must he prepared. 2. Which method tr acks th e wear and tear on the equipment most closely?
- Required information Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2] [The following information applies to the questions displayed below.] On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 2 2. Double-declining-balance. Formula Amount for 2021 Amount for 2022 Choose Numerator: Beginning Book Value Answer is not complete. Double-Declining-Balance Method X Choose Denominator: X Double the Straight-line Rate % % X X X x Fraction of Year Fraction of Year 3/12 12/12 › › Depreciation Expense Depreciation ExpenseE11-2 Depreciation Methods Sorter Company purchased equipment for $200,000 on January 2, 2019. The equipment has an estimated service life of 8 years and an estimated residual value of $20,000. Required: Compute the depreciation expense for 2019 under each of the following methods: 1. straight-line 2. sum-of-the-years’-digits 3. double-declining-balance 4. Next Level What effect does the depreciation of the equipment have on the analysis of rate of return?Required information Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2] [The following information applies to the questions displayed below.] On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 3 3. Units of production (units produced in 2021, 13,000; units produced in 2022, 28,000). (Round "Depreciation per unit rate" answers to 2 decimal places.) Select formula for Units of Production Depreciation: Calculate 2021 depreciation expense: Depreciation per unit rate Units produced in 2021 Depreciation in 2021 Calculate 2022 depreciation expense: Depreciation per unit rate…