On January 1, 2019, Mocha Company purchased a machinery at a cost of P1,000,000. It is...
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On January 1, 2019, Mocha Company purchased a machinery at a cost of P1,000,000. It is being depreciated using straight-line method over its estimated useful life of 10 years. At December 31, 2020, the asset's fair value was determined to be P1,100,000. Accordingly, an entry was made on that date to recognize the revaluation surplus. The accumulated depreciation of the asset is restated proportionately along with the change in the gross carrying amount of the asset. The company follows the policy of transferring some of the surplus as the asset is being used. + On December 31, 2023, an impairment was detected resulting from the significant changes in technology and the recoverable amount of the asset was determined to be P400,000. What are the balances of the Machinery account and its related accumulated depreciation after recording the revaluation on December 31, 2020? How much is the revaluation surplus balance at December 31, 2021? How much is the impairment loss recognized on December 31, 2023? On January 1, 2019, Mocha Company purchased a machinery at a cost of P1,000,000. It is being depreciated using straight-line method over its estimated useful life of 10 years. At December 31, 2020, the asset's fair value was determined to be P1,100,000. Accordingly, an entry was made on that date to recognize the revaluation surplus. The accumulated depreciation of the asset is restated proportionately along with the change in the gross carrying amount of the asset. The company follows the policy of transferring some of the surplus as the asset is being used. + On December 31, 2023, an impairment was detected resulting from the significant changes in technology and the recoverable amount of the asset was determined to be P400,000. What are the balances of the Machinery account and its related accumulated depreciation after recording the revaluation on December 31, 2020? How much is the revaluation surplus balance at December 31, 2021? How much is the impairment loss recognized on December 31, 2023?
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After recording the revaluation on December 31 2020 the Machinery account and its related accumulate... View the full answer
Related Book For
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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