Information pertaining to Pat Corporation's property, plant, and equipment for 2019 is presented below: Account balances...
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Information pertaining to Pat Corporation's property, plant, and equipment for 2019 is presented below: Account balances at January 1, 2019: Land Buildings Accum. Depreciation - Buildings Machinery and Equipment Accumulated Depreciation - Machinery & Equipment Automotive Equipment Accumulated Depreciation - Automotive Equipment Depreciation data: Buildings Machinery & Equipment Automotive Equipment Leasehold Improvements Straight-line b. d. Debit P 1,500,000 12,000,000 9,000,000 (a) (b) 1,150,000 Depreciation Methodi 150% declining-balance Straight-line Sum-of-the-years-digits Credit The salvage values of the depreciable assets are immaterial. Depreciation is computed to the nearest month. Transactions during 2019 and other information are as follows: REQUIRED P2,631,000 2,500,000 846,000 Useful Life 25 years 10 years 4 years On January 2, 2019, Pat purchased a new car for P200,000 cash and trade-in of a two-year-old car with a cost of P180,000 and a book value of P54,000. The new car has a cash price of P240,000; the market value of the trade-in is not known. On April 1, 2019, a machine purchased for P230,000 on April 1, 2013, was destroyed by fire. Pat recovered P155,000 from its insurance company. On May 1, 2019, costs of P1,680,000 were incurred to improve leased office improvements have a useful life of eight years. The related premises. The leasehold lease terminates on December 31, 2025. On July 1, 2019, machinery and equipment were purchased at a total invoice cost of P2,800,000; additional costs of P50,000 for freight and P250,000 for installation were incurred. Pat determined that the automotive equipment comprising the P1,150,000 balance at January 1, 2019, would have been depreciated at a total amount of P180,000 for the year ended December 31, 2019. Compute the depreciation expense that would appear on Put's statement of comp hensive income for the year ended December 31, 2019. Compute the total gain or loss from disposal of assets that would appear in Pat's statement of comprehensive income for the year ended December 31, 2019. Information pertaining to Pat Corporation's property, plant, and equipment for 2019 is presented below: Account balances at January 1, 2019: Land Buildings Accum. Depreciation - Buildings Machinery and Equipment Accumulated Depreciation - Machinery & Equipment Automotive Equipment Accumulated Depreciation - Automotive Equipment Depreciation data: Buildings Machinery & Equipment Automotive Equipment Leasehold Improvements Straight-line b. d. Debit P 1,500,000 12,000,000 9,000,000 (a) (b) 1,150,000 Depreciation Methodi 150% declining-balance Straight-line Sum-of-the-years-digits Credit The salvage values of the depreciable assets are immaterial. Depreciation is computed to the nearest month. Transactions during 2019 and other information are as follows: REQUIRED P2,631,000 2,500,000 846,000 Useful Life 25 years 10 years 4 years On January 2, 2019, Pat purchased a new car for P200,000 cash and trade-in of a two-year-old car with a cost of P180,000 and a book value of P54,000. The new car has a cash price of P240,000; the market value of the trade-in is not known. On April 1, 2019, a machine purchased for P230,000 on April 1, 2013, was destroyed by fire. Pat recovered P155,000 from its insurance company. On May 1, 2019, costs of P1,680,000 were incurred to improve leased office improvements have a useful life of eight years. The related premises. The leasehold lease terminates on December 31, 2025. On July 1, 2019, machinery and equipment were purchased at a total invoice cost of P2,800,000; additional costs of P50,000 for freight and P250,000 for installation were incurred. Pat determined that the automotive equipment comprising the P1,150,000 balance at January 1, 2019, would have been depreciated at a total amount of P180,000 for the year ended December 31, 2019. Compute the depreciation expense that would appear on Put's statement of comp hensive income for the year ended December 31, 2019. Compute the total gain or loss from disposal of assets that would appear in Pat's statement of comprehensive income for the year ended December 31, 2019.
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aSolution Depreciation expense for the year ended December 31 2019 would be as follows Land ... View the full answer
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