Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At December 31, 2016, PRINCESS CORP.'s noncurrent operating asset and accumulated depreciation accounts had balances as follows: Cost Accum. Depn Depn Method Life Land P

image text in transcribedimage text in transcribed
At December 31, 2016, PRINCESS CORP.'s noncurrent operating asset and accumulated depreciation accounts had balances as follows: Cost Accum. Depn Depn Method Life Land P 390 000 Build in 3,600,000 796 ,20 150% 25 years 9 2,325,000 declining 10 Machinery and 396,000 588,60 Straight line equipment Delivery 663,000 150% equipment Leasehold 258,60 declining improvements Straight line 331 ,50 0 Depreciation is computed to the nearest month and the residual values of the depreciable assets are considered immaterial. The following transactions occurred in 2017: a. On January 6, a facility which included a land and a building structure was acquired from Wayde Corp. for P1,800,000. The land had a market value of P860,000. b. On April 6, the constructions of parking lots, streets and sidewalks were completed at the acquired facility. The company incurred a total cost of P576,000 on this project. These expenditures had an estimated useful life of 12 years and are depreciable using the straight line method. c. The leasehold improvements were completed on December 31, 2013, and had an estimated useful of 8 years. The related lease, which would have expired on December 31, 2019, was renewable for an additional 5-year term. On February 28, 2017 the company exercised the renewal option. d. On July 1, machinery and equipment were purchased at a total invoice cost of P750,000. Additional cost of P30 000 and 90,000 for installation were incurred. e. On August 30, Princess purchased a new truck for P45,000.f. On September 30, a truck with a cost of P72,000 and a carrying value of P24,000 on the date of sale was sold for P34,500. Depreciation for the 9-month ended September 30, 2017 was P7 056. g. On December 20, a machine with a cost of P51,000 and a carrying amount of P8,925 at date of disposition was scrapped without cash recovered. Questions: Compute the depreciation expense for the following: 1. Building: 2. Machinery and equipment: 3. Leasehold improvement: 4. Delivery equipment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Integrated Accounting For Windows

Authors: Dale A. Klooster, Warren Allen

5th Edition

0324312490, 9780324312492

More Books

Students also viewed these Accounting questions

Question

x-3+1, x23 Let f(x) = -*+3, * Answered: 1 week ago

Answered: 1 week ago

Question

Relax your shoulders

Answered: 1 week ago