A machine was purchased on 1 April 20X0 for $120,000. It was estimated that the asset...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A machine was purchased on 1 April 20X0 for $120,000. It was estimated that the asset had a residual value of $20,000 and a useful life of 10 years at this date. On 1 April 20X2, the residual value was reassessed as being only $15,000 and the remaining useful life was considered to be only five years. Required Demonstrate how the machine should be accounted for in the years ended 31 March 20X1, 20X2 and 20X3 and prepare extracts of the statement of profit or loss and statement of financial position for each year. A machine was purchased on 1 April 20X0 for $120,000. It was estimated that the asset had a residual value of $20,000 and a useful life of 10 years at this date. On 1 April 20X2, the residual value was reassessed as being only $15,000 and the remaining useful life was considered to be only five years. Required Demonstrate how the machine should be accounted for in the years ended 31 March 20X1, 20X2 and 20X3 and prepare extracts of the statement of profit or loss and statement of financial position for each year.
Expert Answer:
Answer rating: 100% (QA)
As a result of the change in expected useful life and residual value the depreciation charge in the ... View the full answer
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
Posted Date:
Students also viewed these accounting questions
-
Using Table 14.1 and 14.2 in chapter 14 of the textbook, how will you rate the hospital overall financial health? Pay attention mostly to liquidity, efficiency and solvency ratio. TABLE 14-1 Assets...
-
Jamison Health Care is trying to decide if it should eliminate its orthopedic care division. In the last year, the orthopedic division had a contribution margin of $100,000 and allocated overhead...
-
In a classic oil-drilling example, you are trying to decide whether to drill for oil on a field that might or might not contain any oil. Before making this decision, you have the option of hiring a...
-
Mr. Yap bought a bond having a face value of Php 1,000.00 for Php 970.00. The bond rate was 14% nominal and dividends were made to him semiannually for a total of 7 years. At the end of the seventh...
-
Which measurement level (nominal, ordinal, interval, ratio) is the response to each question? If you think that the level of measurement is ambiguous, explain why. a. How would you describe your...
-
The amplitude of the sinusoidal symmetrical ac component of the three-phase short-circuit current of an unloaded synchronous machine decreases from a high initial value to a lower steady-state value,...
-
Using divisibility rules, determine if 25,983 is divisible by 9 .
-
Oneida Furniture Company deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of June 30 have been...
-
00 : 30 : 52 Question 22 / 28 For the following scenario, indicate how they would be classified for fund balance reporting purposes: Bond proceeds of $15,000,000 that must be used for construction of...
-
A "best practice" in auditing is to very clearly document the description of your audit scope (i.e., the criteria used to develop your sample). The scope should be described thoroughly enough that an...
-
The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw materials purchased on account, $209,000 b. Raw materials used in production, $189,000...
-
1. An 80 kg man is running east at 15 m/s. What is his momentum? 2. An 8 kg box is moving along a frictionless, horizontal floor. At some point, the box experiences a steady 5 N force that is applied...
-
complete the following problems Do not rename provided data files or edit them in any way. Do not use global paths in your script. Instead, use setwd ( ) interactively in the console, but do not...
-
Determine the value of h such that the following system has infinitely many solutions. Solution: h = -48x + + 40 y = -24 42x + hy = 21
-
The following industries are to be used: hospitality & tourism, professional services, retail, financial services, or transportation. To Understand the interconnection between the organization's...
-
5q Solve q + 5 = 9 by completing the square. 3 (Use a comma to separate multiple solutions.) Provide your answer below: 9
-
Question 2 Multiple Products, Break-Even Analysis, OperatingLeverage Carlyle Lighting Products produces two different types oflamps: a floor lamp and a desk lamp. Floor lamps sell for $30 anddesk l 1...
-
Show that the block upper triangular matrix A in Example 5 is invertible if and only if both A 11 and A 22 are invertible. Data from in Example 5 EXAMPLE 5 A matrix of the form A = [ A11 A12 0 A22 is...
-
Solidad Company calculates the cost for an equivalent unit of production using process costing. Data for June Work-in-process inventory, June 1: 30,000 units Direct materials: 100 percent complete...
-
What are the components of the sales variance?
-
Depreciation expenses have no effect on cash flows and, therefore, are not relevant in capital expenditure analysis. Do you agree? Why or why not?
-
Compare the three ways you can purchase mutual funds.
-
Describe a mutual fund prospectus.
-
You just inherited $4,000. You need to decide whether to invest this money in a mutual fund, pay down your credit card debt, or simply hold the money in an interest-bearing checking account to pay...
Study smarter with the SolutionInn App