Please answer. ASAP

1. What is depreciation?

a. The systematic allocation of the depreciable

amount of an asset over its useful life.

b. The cost of an asset, or other amount substituted

for cost, less its residual value.

c. The removal of a previously recognized asset from

an entity's statement of financial position.

d. Price that would be received to sell an asset in an

orderly transaction between market participants at

the measurement date.

2. Depreciation of an asset begins

a. When it is available for use.

b. When it is actually used.

c. When it is retired from active use.

d. When it is derecognized.

3. Depreciation of an asset ceases

a. At the date that the asset is derecognized.

b. At the date that the asset is classified as held for

sale in accordance with PFRS 5

c. At the earlier of a or b.

d. At the later of or b.

4. Depreciation is not recognized if

a. The fair value of the asset exceeds its carrying

amount.

b. The asset becomes idle.

c. The asset is retired from active use.

d. The asset's residual value exceeds its carrying

amount.

5. The Seoul Company purchased an office equipment with

a useful life of 10 years on 1 June 2020 for P4,500,000.

At its year end of 31 December 2020, the amount the

company would receive from the disposal of the asset if

it was already of the age and in the condition expected

at the end of its useful life was estimated at P300,000.

Inclusive of inflation the actual amount expected to be

received on disposal was estimated at P500,000.

What should be the depreciation charge for the year

ended 31 December 2020?

a. P420,000 c. P233,333

b. P245,000 d. P210,000

6. The depreciation method used shall reflect the pattern

in which the asset's future economic benefits are

expected to be consumed by the entity. Which

statement is incorrect regarding depreciation methods?

a. Straight-line depreciation results in a constant

charge over the useful life if the asset's residual

value does not change.

b. The diminishing balance method results in a

decreasing charge over the useful life.

c. The units of production method results in a charge

based on the expected use or output.

d. A depreciation method that is based on revenue

that is generated by an activity that includes the

use of an asset is appropriate.

Use the following information for the next three questions.

An entity has a machine with the following details:

Cost P1,750,000

Residual value P155,000

Year purchased 2014

Useful life 10 years

Expected units of production 100,000

Units produced in 2020 8,000

It is the entity's policy to take full year's depreciation in

the year of disposal and none in the year of acquisition.

Compute deprecation for 2020 using the appropriate

method.

7. The machine's service potential declines with use.

a. P175,000 c. P140,000

b. P159,500 d. P127,600

8. Sum-of-the-years' digits method

a. P174,000 c. P145,000

b. P159,000 d. P116,000

9. 200% declining-balance method

a. P114,688 c. P91,750

b. P104,530 d. P83,624

10. Holdaway, Inc., a small furniture manufacturer,

purchased the following assets at the end of the year.

Asset # Cost R,V. D.A. Life

1 P24,000 P5,000 P19,000 5 years

2 900 130 770 7 years

3 320 - 320 8 years

4 9,000 500 8,500 5 years

P34,220 P5,630 P28,590

The group depreciation rate is