Them Company has a single investment property, which had original cost of P5,800,000 and estimated residual value of P200,000. on January 1, 2018. At Dec. 31, 2020, its fair value was P6,000,000 and at December 31, 2021, it had fair value of P5,900,000. On acquisition date, the property has estimated useful life of 40 years. The company uses the cost model for its investment property and uses straight-line method. What is the carrying value of the investment property at Dec. 31, 2021?
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- Them Company has a single investment property, which had original cost of P5,800,000 and estimated residual value of P200,000. on January 1, 2018. At Dec. 31, 2020, its fair value was P6,000,000 and at December 31, 2021, it had fair value of P5,900,000. On acquisition date, the property has estimated useful life of 40 years. The company uses the cost model for its investment property and uses straight-line method.What is the carrying value of the investment property at Dec. 31, 2021?We Company has a single investment property, which had original cost of P5,800,000 and estimated residual value of P200,000. on January 1, 2018. At Dec. 31, 2020, its fair value was P6,000,000 and at December 31, 2021, it had fair value of P5,900,000. On acquisition date, the property has estimated useful life of 40 years. The company uses fair value model for its investment property.what is the carrying value of the property at December 31, 2020?On Sept 30, 2020, ABC acquired a building to earn rent through operating leases. The investment property was initially measured at P20,000,000. It has an estimated useful life of 25 years and a residual value of P400,000. It has a fair value of P22,000,000 and P23,000,000 as of the end of 2020 and 2021 respectively. a. Using the cost model, what is the depreciation expense for the year 2020? Note that asset was acquired on Sept. 30. b. Using the cost model, what is the carrying value of the investment property on Dec. 31, 2021?
- On Sept 30, 2020, ABC acquired a building to earn rent throughoperating leases. The investment property was initially measured atP20,000,000. It has an estimated useful life of 25 years and aresidual value of P400,000. It has a fair value of P22,000,000 andP23,000,000 as of the end of 2020 and 2021 respectively. a. Using the cost model, what is the depreciation expense forthe year 2020? Note that asset was acquired on Sept. 30.On Sept 30, 2020, ABC acquired a building to earn rent throughoperating leases. The investment property was initially measured atP20,000,000. It has an estimated useful life of 25 years and aresidual value of P400,000. It has a fair value of P22,000,000 andP23,000,000 as of the end of 2020 and 2021 respectively. A. Using the cost model, what is the depreciation expense forthe year 2020? Note that asset was acquired on Sept. 30.B. Using the cost model, what is the carrying value of theinvestment property on Dec. 31, 2021? C. Using the fair value model, what is the carrying value onDec. 31, 2020?D. Using the fair value model, what is the gain or (loss) fromchange in fair value?Summer Co. uses the cost model to account for its property, plant and equipment (PPE). The PPE was acquired on January 1, 2020 for $575,000. Summer uses straight-line depreciation and estimates that the PPE will have a 14-year life with a residual value of $15,000. Assuming there are no impairment losses, the December 31, 2021 net book value of the PPE will be: Question 2 options: $520,000 $480,000 $495,000 $535,000
- On Sept 30, 2020, ABC acquired a building to earn rent throughoperating leases. The investment property was initially measured atP20,000,000. It has an estimated useful life of 25 years and aresidual value of P400,000. It has a fair value of P22,000,000 andP23,000,000 as of the end of 2020 and 2021 respectively.1. Using the cost model, what is the depreciation expense forthe year 2020? Note that asset was acquired on Sept. 30. 2. Using the cost model, what is the carrying value of theinvestment property on Dec. 31, 2021? 3. Using the fair value model, what is the carrying value onDec. 31, 2020? 4. Using the fair value model, what is the gain or (loss) fromchange in fair value?On January 1, 2020, London Company purchased a large On the date of purchase, the management estimated that During January 2021, the entity realized that technological Problem 8-11 (IAA) quantity of personal computers. The cost of these computers have a residual value at that time of P600,000. The entity the computers would last approximately four years and wouH On January 1, 2020, London Company purchased quantity of was P6,000,000. On the date of purchase, the management estimated used the double declining balance method. advancements had made the computers virtually obsolet and that they would have to be replaced. The management changed the remaining useful life of the computers to two years. What amount should be recorded as depreciation for 2021? a. 3,000,000 b. 2,400,000 c. 1,500,000 d. 1,200,000The Equipment owned at the beginning of 2022 had been purchased as follows: Acquisition Acquisition year cost 2018 2019 2020 100 000 kr 55 000 kr 69 000 kr During the current year, the purchase of Equipment has been made with SEK 205,000 The estimated useful life (economic life) of all machines and equipment is 10 years. The company is entitled to accounting depreciation. Calculate and post the depreciation for the year according to plan.
- On December 31, 2020, you are provided with the following information about the PPE of DEF Corp.: cost est. useful life depreciation method bldg 12,000,000 30 straight line machinery 5,000,000 10 SYD equipment 800,000 5 Double declining All PPE were acquired on January 1, 2018 when the business started operations, and havea residual value equal to 5% of cost.Determine the following on December 31, 2020:1. Accumulated Depreciation of building2. Carrying amount of building3. Accumulated Depreciation of machinery4. Carrying amount of machinery5. Accumulated Depreciation of equipment6. Carrying amount of equipmentOn December 31, 2020, Waterway Inc. hap a machine with a book value of $1,128,000. The original cost and related accumulated depreciation at this date are as follows. Machine $1,560,000 Less: Accumulated depreciation 432.000 Book value $1,128,000 Depreciation is computed at $72.000 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. (a) A fire completely destroys the machine on August 31, 2021. An insurance settlement of $516,000 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when amount is entered, Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Date Account Titles and Explanation Debit Credit…Mumtaj, Inc. is acquiring equipment as follows: Krafton will pay cash of $500,000 and sign a non-interest bearing note with a face amount of $1,661,000.The fair value (i.e. market value) of equipment on 3/31/2021 is $1,500,000The equipment will be placed in operations on the acquisition date with an expected life of 10 years. Krafton Company uses straight-line depreciation and expects no salvage value.The face amount is payable 3 years from the date of acquisition (3/31/2021). Carter Company uses a calendar year for its fiscal year. Carter Company can currently obtain loans from its banks at an interest rate of 10%Prepare an amortization table for the note payable and all necessary journal entries for the year ended 12/31/2021 including, as appropriate, adjusting entries.