Reference no: EM132946873
Questions -
Q1. ROSE Company purchased machinery on January 1, 2020. It has an estimated useful life of four years and a residual value of 500,000. The machine is being depreciated using SYD Method. The depreciation applicable to this fixed asset for 2021 is 1,200,000. What was the acquisition cost of the machinery?
Q2. ROSE Company purchased machinery on January 1, 2020. It has an estimated useful life of four years and a residual value of 500,000. The machine is being depreciated using SYD Method. The depreciation applicable to this fixed asset for 2021 is 1,200,000. What was the carrying value of the machinery on December 31, 2021?
Q3. VIOLETS Company purchased 5,000 shares of POPPY Company par 100 at 120 in March 2020 VIOLETS received a share dividend of 1 share for every 5 owned on August 30, 2020. On September 15, 2020, the firm received a cash dividend of 10 per share. On October 1, 2020, VIOLETS was granted the right to purchase 1 share at 105 for every 4 rights held. The share had a market value of 115 and the right had a value of 5 on the date the rights were received. On December 15, 2020, the company sold 2,000 rights at 7.50 and exercised the remaining rights. What is the average unit cost of the total investment as of December 31, 2020?
Q4. In 2018, IRIS Company paid 4,000,000 to purchase land containing a total estimated 160,000 tons of extractable mineral deposits. The estimated value of the property after the mineral has been removed is 800,000. Extraction activities began in 2019 and by the end of the year, 20,000 tons had been recovered and sold. In 2020, geological studies indicated that the total amount of mineral deposits had been underestimated by 60,000 tons. During 2020, 30,000 tons were extracted and 28,000 tons were sold. What is the depletion rate per ton in 2020?
Q5. In 2018, IRIS Company paid 4,000,000 to purchase land containing a total estimated 160,000 tons of extractable mineral deposits. The estimated value of the property after the mineral has been removed is 800,000. Extraction activities began in 2019 and by the end of the year, 20,000 tons had been recovered and sold. In 2020, geological studies indicated that the total amount of mineral deposits had been underestimated by 60,000 tons. During 2020, 30,000 tons were extracted and 28,000 tons were sold. How much depletion expense is to be presented in the cost of sales of 2020?
Q6. In 2018, IRIS Company paid 4,000,000 to purchase land containing a total estimated 160,000 tons of extractable mineral deposits. The estimated value of the property after the mineral has been removed is 800,000. Extraction activities began in 2019 and by the end of the year, 20,000 tons had been recovered and sold. In 2020, geological studies indicated that the total amount of mineral deposits had been underestimated by 60,000 tons. During 2020, 30,000 tons were extracted and 28,000 tons were sold. What is the carrying value of the wasting asset?
Q7. During 2020, TULIP Corporation incurred costs to develop and produce a routine, low-risk computer software product as follows: Packaging product (500 units) -90,000; Duplication of computer software and training materials from product masters (1,000 units) -250,000; Completion of detailed program design -130,000; Cost of producing product masters for training materials -150,000; Other testing costs after establishment of technological feasibility -200,000; Costs incurred for coding and testing to establish technological feasibility -100,000; Other coding costs after establishment of technological feasibility -240,000. In TULIP's December 31, 2020 statement of financial position, what amount should be capitalized as software cost subject to amortization?