User Account

All Pages

How much is the depreciation expense recognized by Blue

Assignment Help Accounting Basics
Reference no: EM132946336

Questions -

Q1) On April 1, 2021, Blue Company acquired a machine by signing a four-year lease. Annual rentals of P1,742,174 are payable at the beginning of each lease year starting April 1, 2021. Blue is given the option to buy the machine for P250,000 on April 1, 2025, when the asset's market price is expected to be P1,250,000. The asset's useful life is 6 years, at the end of which the asset's scrap value is expected to be P600,000. Blue uses the straight-line method to depreciate this asset.

With an implicit interest rate of 10%, Blue appropriately recorded the machine and the related liability on April 1, 2021 at P6,245,450. Blue Company follows the calendar year as its accounting period.

How much is the depreciation expense recognized by Blue for the years ended December 31, 2022 and December 31, 2021?

Q2) On October 1, 2021, Yellow Company leased from Purple Company a set of furniture, which Brown will use for a period of 12 months. On this date, Brown paid the annual rental of P36,000 plus P3,000 incentive to Purple as an inducement to grant the rental for a considerably short period of time. Brown reports on a calendar-year basis.

How much is the rent expense reported in Yellow Company's profit or loss for the year ended December 31, 2021?

Reference no: EM132946336

Questions Cloud

Constitute a late-mover advantage : Which of the following conditions do not constitute a late-mover advantage (or first move a disadvantage)?
What are the reporting requirements at year-end : Patricia is asking for information on the Nunavut Payroll Tax. Who pays the tax and how is it calculated? Are there any special considerations
What is the probability of one customer : i. What is the probability that at least one customer will exceed his or her credit limit?
What are examples of companies : What are examples of companies that you think get strategy right, and why?
How much is the depreciation expense recognized by Blue : How much is the depreciation expense recognized by Blue for the years ended December 31, 2022 and December 31, 2021
What cost of goods sold under lifo is : A physical count of merchandise inventory on November 30 reveals that there are 94 units on hand. Cost of goods sold under LIFO is?
How is guidance software responding to and helping : Guidance Software's suite of EnCase® solutions is the first computer forensics tool able to provide world- class electronic investigative capabilities for large
How to motivate employee performance : Your manager was happy with your proposed qualitative design to better understand how to motivate employee performance. However, over the last 40 hours since yo
What price car can she afford to purchase : If the interest rate is 4.9 percent, compounded monthly, and she has a cash down payment of $2,500, what price car can she afford to purchase

Reviews

Write a Review

Accounting Basics Questions & Answers

  Forward contract as a fair value hedge of a foreign currency

Assuming that Budvar designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for these transactions.

  What makes the market segmentation effective

Identify a product that you have seen with either effective or ineffective market segmentation. Explain what makes the market segmentation effective

  Estimating the company future revenues

Assume you are reviewing a company's annual report. In addition to actual revenues reported in the income statement, what other information disclosed would give you help in estimating this company's future revenues?

  Prepare journal entries to record the declaration

Prepare journal entries to record the declaration and payment of these stock and cash dividends. Note: Dividends are not paid on shares held in the treasury

  What amount should captain cook report as a liability

What amount should Captain Cook report as a liability for coupons on its December 31, 2009, balance sheet

  Rank the importance of each issue for your client and

pretend your client is the owner of a privately held manufacturing company with two operational subsidiaries.your

  Prepare the journal entry to write off those two accounts

On February 1, the company determined that $6,800 in customer accounts was uncollectible; Prepare the journal entry to write off those two accounts

  The role of a chief administrative officer

the role of a chief administrative officer for a large non-profit health relief organization. A board of directors has requested that you prepare a summary of the issues about how to solve the health needs of an African country.

  On november 15 2009 sandra cook a newly hired cost analyst

on november 15 2009 sandra cook a newly hired cost analyst at peterson manufacturing company was asked to predict

  How much profit does the company make

How much profit (loss) does the company make by processing the intermediate product cane juice into molasses rather than selling it as is

  Which product expansion grid strategy pc-market

Explain which product/market expansion grid strategy PC-market are currently pursuing to deal with the threat of post-PC devices. Is this a smart strategy?

  Describe the differences among liabilities

Describe the differences among liabilities. Methods to analyze line of credit to liabilities. Discuss management issues with handling liabilities.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd