User Account

All Pages

What is the initial cost of the equipment

Assignment Help Accounting Basics
Reference no: EM132854349

Question - Use the following information for the next five questions: Entity A acquires equipment on January 1, 20x1. Information on costs is as follows: Purchase price, gross of trade discount 1,000,000

Trade discount available 10,000

Freight costs 20,000

Testing costs 30,000

Net disposal proceeds of samples generated during testing 5,000

Current value of estimated costs of dismantling the equipment at the end of its useful life 6,209

Required -

1. What is the initial cost of the equipment?

2. The equipment has an estimated useful life of 10 years and a residual value of ?200,000. Entity A uses the straight line method of depreciation. How much is the carrying amount of the equipment on December 31, 20x3?

3. On December 31, 20x3, Entity A revalues the equipment at a fair value of ?820,000. There is no change in the residual value and the remaining useful life of the asset. How much is the revaluation surplus on December 31, 20x3?

4. What is the depreciation expense for 20x4?

5. Entity A sells the equipment for 870,000 on January 1, 20x5. Entity A incurs selling costs of 20,000 on the sale. How much is the gain (loss) on the sale?

Reference no: EM132854349

Questions Cloud

Why is it important that statistical research follow : Why is it important that statistical research follow ethical guidelines?
Risk factors for humanitarian dimensions : Analyzes the effects in terms of risk factors for humanitarian dimensions of affected nations and peoples
How much is the purchase price of the bonds on January : On January 1, 2018 Karen Company acquired a 4-year bond with a face value of Php 1,200,000. How much is the purchase price of the bonds on January 1, 2018
What amount of the proceeds should be allocated : At this date, the ordinary share was selling for P36 and the convertible preference share was selling for P27. What amount of the proceeds should be allocated
What is the initial cost of the equipment : Current value of estimated costs of dismantling the equipment at the end of its useful life 6,209. What is the initial cost of the equipment
How would explain the concept of risk management : Imagine you are talking to a friend. How would you explain the concept of risk management and how it relates to quality management in the health care industry?
Describe the focus of the new balance case history : Describe the relationship between marketing and a well-managed supply chain based on the information provided in the video case.
How organizational culture develops through the stages : Includes an exercise to brainstorm that identifies behavioral descriptors for each new cultural value and articulate how those would translate into actionable
Compute the balance of the fair value of plan assets : Contributions to the retirement fund during the year 120,000. Compute the balance of the fair value of plan assets as of year-end

Reviews

Write a Review

Accounting Basics Questions & Answers

  What amount of loss on factoring Quarantino Company report

The customer paid the note to the bank on maturity date. What amount of loss on factoring should Quarantino Company report for 2020

  Determine the cost of the equipment

Payne estimates that the equipment's useful life will be four years, with a residual value of $14,000. Determine the cost of the equipment

  Determine the amount of education credits or deductions

Determine the amount of education credits or deductions Mason can take on his tax return for these education expenses

  What amount may he deduct as interest

George recently received a great stock tip from his friend, Mason. George paid $1,200 interest expense on the loan. What amount may he deduct as interest

  Determine the dollar amount of dividends that was paid

Alpha Corp. had $15,000 of dividends in arrears, Use this information to determine the dollar amount of dividends that paid to preferred shareholders in 2018

  Define positive accounting theory

Define Positive accounting theory. What are some critiques of positive accounting theory? What is the advantage and disadvantage of Positive accounting theory.

  What is the purpose of encumbrance accounting

What is the purpose of encumbrance accounting?

  Record watney''s receipt of six months of interest revenue

.Assume the same facts as in E12-30, but that Watney intends to sell half of the Hamel bonds immediately and to hold the other half of the bonds to sell once the price of the bonds appreciates sufficiently.

  Based on the information above im trying to determine the

based on the information above im trying to determine the cost of goods sold. but i have no clue how do so. it seems

  Compute the number of boxes of candy

Compute the dollar amount of monthly sales Yucki needs to earn $2500,000 in profit. (Round the contribution margin ratio to four decimal places.

  Appropriately classified as deductions for agi

Larry and Susan each invest $10,000 in separate investment activities. They each incur deductible expenses of $800 associated with their respective investments. Explain why Larry's expenses might be properly classified as deductions from AGI (item..

  What amounts should abc company make adjusting entries

The cash balance in ABC Company's general ledger is $14,000 and the cash balance shown on its bank statement is $19,000. Reconciling items include outstanding checks totaling $8,000.

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