A company acquired a machine on July 1, 2016 and paid P5,200,000 including freight of P50,000 and
Question:
On December 31, 2017, what is the carrying amount of the machine?
On April 1, 2016, a company purchased new machinery for P3,300,000. The machinery hasan estimated useful life of five years with residual value of P300,000. Depreciation iscomputed by the sum of the years' digits method. What is the depreciation for 2016?
A company purchased factory equipment which was installed and put into service January 1,2016 at a total cost of P1,280,000. Residual value was estimated at P80,000. The equipmentis depreciated over eight years by the double declining balance method.
What amount of depreciation expense should be recorded on the equipment for 2017?
On January 1, 2016, London Company purchased a large quantity of personal computers. The cost of these computers was P6,000,000.
On the date of purchase, the management estimated that the computers would last approximately 4 years and would have a residual value at that time of P600,000. The entity used the double declining balance method.
During January 2017, the management realized that technological advancements had made the computers virtually obsolete and that they would have to be replaced. Management proposed changing the remaining useful life of the computers to 2 years.
What is the depreciation expense for 2017?
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M