Metropolitan Bank and Trust Company used the composite method of depreciation based on a composite rate...
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Metropolitan Bank and Trust Company used the composite method of depreciation based on a composite rate of 25%. At the beginning of 2016, the total cost of equipment was P2,500,000 with a total residual value of P300,000 and accumulated depreciation of P1,500,000. In January 2016, the entity purchased an equipment for P1,250,000 with no residual value. At the end of 2016, the entity sold an equipment with an original cost of P500,000 and a residual value of P100,000 for P175,000. This asset was acquired on January 1, 2014. What is the depreciation for 2016? 12. 2GO Group takes a full year depreciation expense in the year of acquisition, and no depreciation expense in the year of disposition. Data relating to a depreciable asset on December 31, 2015 are as follows: Acquisition year Cost Residual value Accumulated depreciation Estimated useful life 2013 550,000 100,000 360,000 5 years Using the same depreciation method in 2013, 2014 and 2015, what amount of depreciation should be recorded in 2016? Metropolitan Bank and Trust Company used the composite method of depreciation based on a composite rate of 25%. At the beginning of 2016, the total cost of equipment was P2,500,000 with a total residual value of P300,000 and accumulated depreciation of P1,500,000. In January 2016, the entity purchased an equipment for P1,250,000 with no residual value. At the end of 2016, the entity sold an equipment with an original cost of P500,000 and a residual value of P100,000 for P175,000. This asset was acquired on January 1, 2014. What is the depreciation for 2016? 12. 2GO Group takes a full year depreciation expense in the year of acquisition, and no depreciation expense in the year of disposition. Data relating to a depreciable asset on December 31, 2015 are as follows: Acquisition year Cost Residual value Accumulated depreciation Estimated useful life 2013 550,000 100,000 360,000 5 years Using the same depreciation method in 2013, 2014 and 2015, what amount of depreciation should be recorded in 2016?
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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