User Account

All Pages

What is the depreciation in the first year

Assignment Help Accounting Basics
Reference no: EM133092324

Questions -

Q1. Anna Co. construed a warehouse for P280,000 on January 2, 2017. The company estimates that the warehouse has a useful life of 20 years with no residual value. Construction records indicate that P40,000 of the cost of the warehouse relates to its heating, ventilation, and air conditioning (HVAC) system, which has an estimated useful life of only 10 years. What us the first year of depreciation expense using straight-line component depreciation under IFRS.

A. 16,000

B. 4,000

C. 28,000

D. 14,000

Q2. What is the definition of value-in-use under IFRS?

A. Net realizable value

B. Total future undiscounted cash flows

C. Fair value

D. Future cash flows discounted to present value

Q3. Hay Co. has land that costs P350,000 but now has a fair value of P500,000. The company decides to use the revaluation method specified in IFRS to account for the land. Which of the following statements is CORRECT?

A. Hay Co. would credit Revaluation Surplus by P150,000

B. Hay Co. would debit Revaluation Surplus for P150,000

C. Hay Co. would report a net income increase of P150,000 due to an increase in the value of the land.

D. Hay Co. must continue to report the land at P350,000.

Q4. Chichi Corp. is constructing a new building at a total initial cost of P10,000,000. The building is expected to have a useful life of 50 years with no residual value. The building's finished surfaces (e.g., roof cover and floor cover) are 5% of the cost with a useful life of 20 years. Building services systems (e.g., electric, heating, and plumbing) are 20% of the cost with a useful life of 25 years. What is the depreciation in the first year using component depreciation, using straight-line depreciation with no residual value?

A. P255,000

B. P215,000

C. P200,000

D. None of the above

Q5. Which of the following statement is CORRECT?

A. Both IFRS and GAAP do not permit revaluation of property, plant, and equipment.

B. Both IFRS and GAAP permit revaluation of property, plant, and equipment.

C. GAAP permits revaluation of property, plant, and equipment but not IFRS.

D. IFRS permits revaluation of property, plant, and equipment but not GAAP.

Reference no: EM133092324

Questions Cloud

Project management life cycle : Choose two Project Management Life Cycle (PMLC) models that you have experience using or that interest you and provide two similarities and two differences
Construct solid communication plan : Using your selected organization, diagnose the organization's level of resistance, and construct a solid communication plan.
What amount is the capitalizable cost of the equipment : The contract price was 1,000,000 yens. The machine was delivered on December 23, 2020. What amount is the capitalizable cost of the equipment
BUSN07025 The Economic Environment Assignment : BUSN07025 The Economic Environment Assignment Help and Solution, University of the West of Scotland - Assessment Writing Service
What is the depreciation in the first year : Chichi Corp. is constructing a new building at a total initial cost of P10,000,000. What is the depreciation in the first year using component depreciation
Describe two to three macroeconomic factors : Describe two to three macroeconomic factors that influence interest rates in general. Explain the effects of each factor on interest rates.
What journal entries must be made to convert this investment : What journal entries must be made to convert this investment from the cost method to the equity method? Provide an explanation for each entry
Explain science-push and demand-pull : Explain science-push and demand-pull in the context of technology development.
Data available for analysis in organizations : How has the Internet of Things caused an explosion in the data available for analysis in organizations?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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