Reference no: EM132945919
Questions -
Q1. An entity purchased equipment on January 1, 2019 for 5,000,000. The equipment had a useful life of 5 years and residual value of P600,000. The policy is to depreciate 5- year assets using the 200% double declining method for the first 2 years and then switch to straight line. What amount should be reported as accumulated depreciation on December 31, 2021?
Q2. On January 1, 2019, an entity acquired an equipment with useful life of 8- years and residual value of P300,000. The depreciation applicable to this equipment was 900,000 for 2020 using the double declining balance method. What was the acquisition cost of the equipment?
Q3. On January 1, 2021, Irene's Corporation bought a factory equipment for P924,000 salvage value was estimated at P24,000 . The asset will be depreciated over 10 years using the double declining balance method. How much is the total accumulated depreciation to be reported in the balance sheet on December 2021?
Q4. An entity takes a full year depreciation in the year of acquisition and no depreciation in the year of disposition. Data relating to a depreciable asset on December 31 , 2018 are cost P5,500,000 residual value P1,000,000, accumulated depreciation P3,600,000 and useful life 5 years. The asset was acquired on July 1, 2016. Using the same depreciation method in 2016, 2017 and 2018, what amount of depreciation should be recorded in 2019?
Q5. On July 1, 2017 Wanton Mining Company purchased the rights to a mine. The total purchase price was P7,920,000, of which P240,000 was allocated to land . Estimated reserves were 1,600,000 tons. Wanton expects to extract and sell 25,000 tons per month. Wanton purchased new equipment on July, 2017. The equipment cost P3,960,000 and have a useful life of 8 years . However, after all the resources are removed, the equipment will be of no use and will be sold for P120,000. If sales and production conformed to expectations, what amount depletion and depreciation should the company recognize in 2017, respectively?