6

Use the following information for next three questions. Totoro Corporation has the following information pertaining to its equipment and accumulated depreciation accounts as of December 31,2020. Jan. 1, 2020 Balance Jun. 1, 2020 No. 12 Sept. 1, 2020 Dismantling of No.6 Equipment P446,000 Sept. 1, 2020 No.6 Sold 37,500 Dec. 31, 2020 Balance 1,500 P484,000 P9,000 475,000 P484,000 Dec. 31, 2020 Balance Accumulated Depreciation - Equipment P271,400 Jan 1, 2020 Balance Dec 31, 2020 Depreciation P224,000 47,400 P271,400 P271,400 Additional information: The company depreciates its equipment at 10 percent per annum. The oldest equipment owned is seven years old as of December 31, 2020. b. Adjusted values last year were P446,000 for the equipment and P224,000 for accumulated depreciation. c. Equipment No, 6 was purchased on March 1, 2012 at a cost of P30,000 and was sold on September 1, 2020 for P9,000 d Included in charges to repairs and maintenance was an invoice covering installation of Equipment No. 12. In the amount of P2,500 e. It is the company's practice to take a full year's depreciation in the year of acquisition and none in the year of disposition. How much is the gain or loss on sale of the Equipment No. 6? 1 point P4,000 O (P1,000) (P1,500 P8,000 How much is the total balance of equipment as of December 31, 2020? point P475,500 P484,500 P454,500 P456,000 How much is the total depreciation expense on the equipment in 2020? How much is the total depreciation expense on the equipment in 2020? 1 point O P45,846 P51,450 P45,600 O P45,450