Solution-At what net book value would the machinery be

At what net book value would the machinery be carried

Reference no: EM132905102

Question - A company purchases a specialist piece of machinery for £60,000 at the beginning of year 1. The machinery is depreciated over its useful economic life which has been estimated at 12 years. At the beginning of year 3 the directors decided to revalue the company's machinery. The cost today of a new asset of similar type would be 20% higher than the original historical cost. At the end of year 3 the accountant calculated the depreciation expense based on the revalued asset cost. At what net book value would the machinery be carried following the revaluation at the beginning of year 3 and accounting for the depreciation for year 3?

Reference no: EM132905102

Questions Cloud

What is the cost comparison for replacing the old equipment : What is the cost comparison for replacing the old equipment. Use only relevant items and add the items together for the next 7 years

What is the use of lcnrv calculations in companies : Explain whether every trading and manufacturing company must perform LCNRV calculations and what is the use of LCNRV calculations in companies?

What is the carrying value of the investment : On March 31, 2020, RAIN Company acquired 20,000 shares of Droplets Company at #120 per share. What is the carrying value of the investment

Explain two methods you use to build good coding habits : You spent some time last week learning about the format of the ICD-10-CM code book. Explain two methods you use to build good coding habits

At what net book value would the machinery be carried : At what net book value would the machinery be carried following the revaluation at the beginning of year 3 and accounting for the depreciation for year 3

What amount is jim rental expense in the current year : The total insurance premium was $2,000. Assume Jim is a cash-basis, calendar-year taxpayer. What amount is Jim's rental expense in the current year

Calculate consolidated retained earnings : Calculate and allocate acquisition differential - Prepare an amortization schedule of acquisition differential to December 31, 2020 Show all calculations

What is the change in the owner equity amount : If total liabilities increased by $10,000 and the assets increased by $10,000 during the accounting period, what is the change in the owner's equity amount

Determine the payback period and unadjusted rate of return : Income before taxes earned by the ice cream parlor is taxed at an effective rate of 20 percent. Determine the payback period and unadjusted rate of return

User Account

All Pages

At what net book value would the machinery be carried

Reference no: EM132905102

Reference no: EM132905102

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT