At 31 July 20X6, Helios International had non-current assets which had cost $310,000. At the same date, the accumulated depreciation on the assets was $120,000. The company had not disposed of any non-current assets during the year to 31 July 20X7, but acquired an asset at a cost of $79,200 on 1 January 20X7. Helios International depreciates non-current assets at a rate of 25% per annum. What is the company’s depreciation charge for the year to 31 July 20X7 using: a. The straight-line method b. The reducing balance method Assume that depreciation is charged from the first year of acquisitio

At 31 July 20X6, Helios International had non-current assets which had cost $310,000. At the same date, the accumulated depreciation on the assets was $120,000. The company had not disposed of any non-current assets during the year to 31 July 20X7, but acquired an asset at a cost of $79,200 on 1 January 20X7. Helios International depreciates non-current assets at a rate of 25% per annum. What is the company’s depreciation charge for the year to 31 July 20X7 using: a. The straight-line method b. The reducing balance method Assume that depreciation is charged from the first year of acquisitio

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 10RE: Assume the same information as in RE11-3, except that Albany Corporation purchased the asset on...

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Fixed Assets & Depreciation At 31 July 20X6, Apollon International had non-current assets which had cost $310,000. At the same date, the accumulated depreciation on the assets was $120,000. The company had not disposed of any non-current assets during the year to 31 July 20X7 but acquired an asset at a cost of $79,200 on 1 January 20X7. Apollon International depreciates non-current assets at a rate of 25% per annum. Required: Compute the company’s depreciation charge for the year to 31 July 20X7 using: The straight-line method The reducing balance method Assume that depreciation is charged from the first year of acquisition with a full year’s charge.
Assume a company’s beginning and ending balances in the Accumulated Depreciation account are $30,000 and $44,000, respectively. During the period the company sold one noncurrent asset that had an original cost of $8,000. The cash proceeds from the sale were $3,000 and the gain on the sale was $1,000. What is the amount of the depreciation charges that the company would include in the operating activities section of its statement of cash flows? Multiple Choice $18,000 $20,000 $24,000 $8,000
18. ABC Co. takes a full year's depreciation expense in the year of an asset's acquisition and no depreciation expense in the year of disposition. Data relating to one of ABC' depreciable assets at December 31, 20X5 are as follows: Acquisition year – 20X3; Cost - P350,000; Residual value - 50,000; Accumulated depreciation - 240,000; Estimated useful life - 5 years; Using the same depreciation method as used in 20X3, 20X4, and 20X5, how much depreciation expense should ABC record in 20X6 for this asset?
On 1 January 20X8 Hendrix Co revalued its property to $200,000. Up to the date of the revaluation, the asset had been accounted for at a cost of $160,000, and had accumulated depreciation $40,000. The property had an expected useful life of fifty years from the date of purchase and nil residual value. State the accounting entries required to account for the revaluation in the financial statements of Hendrix Co. Debit or Credit Account title $
Extracts from Tom Ltd's Statement of financial positions are given below: At year- end At beginning of year £'000 £'000 Non-current assets 295 240 Accumulated depreciation 150 105 Net book value 145 135 Assuming there were no disposals within the year, which of the following statements is true? Select one: OA. During the year, the amount spent on the purchase of non-current assets was £295,000 and the depreciation charge for the year was £150,000. OB. During the year, the amount spent on the purchase of non-current assets was £55,000 and the depreciation charge for the year was £150,000. OC. During the year, the amount spent on the purchase of non-current asset purchases was £55,000 and the depreciation charge for the year was £45,000. OD. During the year, the amount spent on the purchase of non-current assets was £295,000 and the depreciation charge for the year was £45,000.
COTB MC Qu. 15-70 (Algo) Assume a company sold a... Assume a company sold a piece of equipment that had an original cost of $500,000 and accumulated depreciation of $300,000. The gain on the sale was $21,000. In addition, the beginning and ending balances in the company's Property, Plant, and Equipment account were $4,700,000 and $4,600,000, respectively. Based solely on the information provided, the company's net cash provided by (used in) investing activities would be: Multiple Choice $(179,000). $(200,000). O $(158,000). $(121,000).
The next four items are based on the following information: Dirt Corporation schedule of depreciable assets at December 31, 20X7 was as follows: Ассит. Acquisition date Depreciation 64,000 36,000 33,600 Asset Cost Residual value А 100,000 55,000 70,000 20X6 20,000 10,000 В 20X5 C 20X5 14,000 Dirt takes a full year's depreciation expense in the year of an asset's acquisition, and no depreciation expense in the year of an asseť's disposition. The estimated useful life of each depreciable asset is 5 years. 2. Dirt depreciates asset A on the double-declining-balance method. How much depreciation expense should Dirt record in 20X8 for asset A? 3. Dirt depreciates asset A on the double-declining-balance method. How much depreciation expense should Dirt record in 20X9 for asset A? 4. Using the same depreciation method as used in 20X5, 20X6, and 20X7, how much depreciation expense should Dirt record in 20X8 for asset B? 5. Dirt depreciates asset C by the straight-line method. On June 30, 20X8,…
7. On January 1, 2018 an entity purchased for P4,800,000 machine with useful life of ten years on residual ofP200,000. The machine was depreciated by the double declining balance method. The entity changed to thestraight line method on January 1, 2020 and the residual value did not change. What is the accumulateddepreciation on December 31,2020?a. 2,087,000 c. 2.188,000b. 2,112,000 d. 2,015,200
Dain's Diamond Bit Drilling purchased the following assets this year. Purchase Original Asset Date Drill bits (5-year) January 25 $ Drill bits (5-year) July 25 Commercial building April 22 Basis 102,500 113,250 266,000 Assume its taxable income for the year was $55,250 for purposes of computing the §179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Leave no answer blank. Enter zero if applicable.) c. If the January drill bits' original basis was $2,491,500, what is the maximum amount of $179 expense Dain's may deduct for the year?
Chloe Ltd purchased equipment on 1 April 20X2 for GHS 100,000. The equipment was depreciated using the reducing balance method at 25% per annum. Chloe Ltd prepares accounts to 31 March annually. Depreciation was charged up to and including 31 March 20X4. At that date, the recoverable amount of the equipment was GHS 42,000. According to IAS 36 Impairment of Assets, what was the impairment loss on this equipment calculated on 31 March 20X4?
A fixed asset with a cost of $34,571 and accumulated depreciation of $31,113.90 is sold for $5,877.07. What is the amount of the gain or loss on disposal of the fixed asset? Oa. $3,457.10 loss Ob. $3,457.10 gain Oc. $2,419.97 gain Od. $2,419.97 loss
Disposal of Asset During the year to 30 June 20X7, Eugene Ltd sold a non-current asset for $36,000. It had been acquired three years ago at a cost of $180,000. At the date of disposal of the asset, the accumulated depreciation was $138,000. What was the profit or loss on disposal, and what journal entries are needed to record the disposal?