Reference no: EM132629999

Question - On January 1, 2019 Bridges Company purchased personal computers for P12,000,000. The management estimated that the computers would last approximately 4 years with residual value of P1,200,000. The entity used the double declining balance method. During January 2020, the management realized that technological advancement had made the computers virtually obsolete and proposed changing the remaining useful life to 2 years. What amount of depreciation should be recognized for 2020?

Items 1 to 11 are based on the following: Firth Company uses hand tools in its manufacturing operations. On January 1, 2019, there are 800 units on hand at P400 each. In 2019, the company acquired 400 units at P600 each. 300 units of tools were retired at cash proceeds of P100 each. At the end of the year, the estimated value of tools amounted to P400,000.In 2020, 900 units were purchased at a cost of P800 each. 700 units were retired and the company received P140 for each unit. The estimated value of tools on December 31, 2020 was P700,000.

1. Under the retirement method, what is the depreciation in 2019?

2. Under the retirement method, what is depreciation in 2020?

3. Under the retirement method, what is the balance of Tools on 12/31/19?

4. Under the retirement method, what is the balance of Tools on 12/31/2020?

5. Under the replacement method, what is the depreciation in 2019?

6. Under the replacement method, what is the depreciation in 2020?

7. Under replacement method, what is the balance of Tools on 12/31/19?

8. Under replacement method, that is the balance of Tools on 12/31/20?

9. Under inventory method, what is the depreciation in 2019?

10. Under inventory method, what is the depreciation in 2020?

11. Under inventory method, what is the balance of Tools on 12/31/19?

12. Under inventory method, what is the balance of Tools on 12/31/20?