Solution-What should be the depreciation expense on this

What should be the depreciation expense on this machine

Assignment Help Accounting Basics

Reference no: EM133152467

Question 1 - Calulut Corporation was established on January 1, 2020. On January 1, 2022, the Company purchased plant equipment at a cost of P3,500,000 for its expanding provincial operations. It is the Company policy that this equipment should be depreciated on the straight line method over a five-year period with no residual value. In the year 2022, the newly hired accountant made an error not to recognize depreciation in the Company's financial statements. During the preparation of the Company's 2023 financial statements, the error was discovered by the auditors. What should be the Depreciation expense on this machine for the year 2023?

a. P350,000

b. P2,100,000

c. P1,400,000

d. P700,000

Question 2 - During 2022, Camaganacan Company decided to change from the FIFO method of inventory valuation to the weighted average method.

	FIFO	Weighted Average
January 1 inventory	P7,100,000	P7,700,000
December 31 inventory	7,900,000	8,300,000

In the statement of retained earnings for 2022, what amount should be reported as the pretax cumulative effect of this accounting change?

a. P1,000,000 addition

b. P1,000,000 deduction

c. P600,000 deduction

d. P600,000 addition

Reference no: EM133152467

Questions Cloud

Traditional and sustainable packaging initiatives : Assume that the cost differential between traditional and sustainable packaging initiatives for the Lip Quench product carries to other product lines.

What is the total amount of expense : In Alyzza interim income statement for six months ended June 30 2022, what is the total amount of expense relating to these two items that should be reported

Expectancy and condition model in mind body medicine : What is the difference between expectancy and condition model in mind body medicine

Describe brand of product with substantial service component : Pick and describe a brand of a product with a substantial service component. In your description, objectively discuss the most important branding elements and r

What should be the depreciation expense on this machine : During the preparation of the Company's 2023 financial statements, the error was discovered by the auditors. What should be Depreciation expense on this machine

Enhance the convenience and time of the four season hotel : 1.?Provide one example for each of the following to enhance the value of Four Season hotel. Support your example with an appropriate picture or photo.

What are advantages and disadvantages of organization forms : What are the advantages and disadvantages of organization forms? Why most large public health care organizations use the corporate form

Determine the weighted average number of shares outstanding : On January 1, 2021, Mortar Corp. had 580,000 common shares outstanding. Determine the weighted average number of shares outstanding

Prepare the journal entries under gross method : The requirements for this problem is to prepare the journal entries under (a) gross method and (b) Net Method

User Account

All Pages

What should be the depreciation expense on this machine

Reference no: EM133152467

Reference no: EM133152467

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT