Question
ABC Company purchased a machinery on January 1, 2018 for Php800,000 that has an estimated useful life of 8 years. On December 31 of 2019
| ABC Company purchased a machinery on January 1, 2018 for Php800,000 that has an estimated useful life of 8 years. On December 31 of 2019 and 2020, the fair value of the machinery amounted to Php550,000, and Php600,000, respectively. On October 1, 2021,the entity decided to sell the machinery in the early part of 2022. The entity uses revaluation model in accounting for its property, plant, and equipment. | ||||||||
| The fair market value cf the machinery and its estimated disposal cost are as follows: | ||||||||
| Fair Value | Disposal Cost | |||||||
| October 1, 2021 | 400,000.00 | 25,000.00 | ||||||
| December 31, 2021 | 405,000.00 | 20,000.00 | ||||||
| How much is the impairment loss in 2021? |
| 25,000.00 |
| 54,500.00 |
| 72,500.00 |
| None |
| None of the choices |
| How much is the depreciation expense in 2021? |
| 67,500.00 |
| 90,000.00 |
| 100,000.00 |
| 70,000.00 |
| None of the choices |
| How much is the revaluation surplus AFTER the date of reclassification? |
| 17,500.00 |
| 72,000.00 |
| 90,000.00 |
| 150,000.00 |
| None of the choices |
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ACCOUNTING JOB QUESTIONS AND ANSWERS Trainee Accountants Handbook
Authors: Sterling Libs FCCA
1st Edition
1911037129, 978-1911037125
