16.Acute Company was incorporated on January 1, 2015.In preparing the financial statements, the entity used the following original cost, useful life and depreciation method for the property, plant and equipment:

Original CostUseful LifeMethod

Building8,000,0008 yearsDeclining Balance

Machinery8,400,0007 yearsSYD

Furniture6,000,0005 yearsDouble Declining Bal.

On January 1, 2017, the entity determined that the remaining useful life is 4 years for the building, 2 years for the machinery and 2 years for the furniture.The entity will also use the straight line method of depreciation beginning 2017.What is the balance of the accumulated depreciation on December 31, 2017?

17.After the issuance of the 2018 financial statements, Nerve Company discovered a computational error of P500,000in the calculation of the December 31, 2018 inventory.The error resulted in the overstatement in the cost of goods sold for the year ended December 31, 2018.In June, 2019, the entity paid the amount of P350,000in settlement of litigation which a provision of P200,000 was accrued on December 31, 2018.

In the 2019 financial statements, what is thepretaxadjustment to retained earnings on January 1, 2019?

18.Grass Company discloses supplemental operating segment information.The following information is available for the current year:

SEGMENTSALESTRACEABLE EXPENSES

X1,000,000600,000

Y800,000500,000

Z600,000350,000

Additional expenses, not included above are as follows:

Indirect segment expenses360,000

General administrative expenses240,000

Appropriate common expenses are allocated to segments based on the ratio of a segment sales to total sales.What is segment Z's operating profit?

19.Maurice Company provided the following information for the first quarter:

Depreciation Expense for the calendar year450,000

Year-End bonuses to employees300,000

Loss on inventorywritedown200,000

Property Taxes for the calendar year500,000

Ordinary Repairs to Equipment150,000

Loss from typhoon250,000

Insurance for the calendar year350,000

Advertising of a new product400,000

What total amount of expenses should be reported in the first quarter?

20.Hyperion Company provided the following income statement for the year ended December 31, 2018:

Third quarter sales were 30% of total sales.

For interim reporting purposes, a gross profit rate of 40% can be justified.

Variable operating expenses are allocated in the same proportion as sales.Fixed operating expenses are allocated based on the expiration of time.

Of the total operating expenses, P350,000relate to variable expenses and P150,000 relate to fixed expenses.

The casualty loss occurred on July 1, 2018.

The equipment was sold on October 1, 2018.

What amount should be reported as income after tax for the third quarter?