HOW MUCH IS THE BALANCE OF REVALUATION SURPLUS ON DECEMBER 31, 2020? HOW MUCH IS THE DEPRECIATION EXPENSE ON 2020? Problem 29-5 (ACP),(AAD) V-es moldo14Cherry Company acquired a building on January 1, 2017 at acost of P20,000,000. The building has an estimated useful life of6 years and residual value of P2,000,000.letalThe building was revalued on January 1, 2020 and therevaluation revealed replacement cost of P30,000,000, residualvalue of P4,000,000 and revised useful life of 8 years.

Revaluation Surplus Any increases in the worth of capital investments are kept in an equity account…

Answered: MUCH IS THE BALANCE OF REVALUATION…

Business

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MUCH IS THE BALANCE OF REVALUATION SURPLUS ON DECEMBER 31, 2020? HOW MUCH IS THE DEPRECIATION EXPENSE ON 2020?

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 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...

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Chapman 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. $134,000
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Problem 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
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…
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E9-20 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?
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…
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