Question
On January 1, 2021, Claire Co. acquired machinery with a cost of P2,200,000 with an estimated useful life of 10 years and estimated salvage value
On January 1, 2021, Claire Co. acquired machinery with a cost of P2,200,000 with an estimated useful life of 10 years and estimated salvage value of P200,000. On January 1, 2022, the machinery has a recoverable amount (fair value) of P2,990,000 with an estimated residual value of P200,000. On January 1, 2024, based on objective evidence, the asset was found to have been impaired. The machinery now has a recoverable amount (fair value) of P939,500 with an estimated residual value of P40,000.
Case 1: Assuming the company is using cost model, answer the following:
How much is the revaluation surplus on January 1, 2022? *
Nil
990,000
200,000
300,000
How much is the impairment loss in 2024? *
1,450,500
660,500
Nil
680,500
How much is the depreciation for 2021? *
299,000
200,000
Nil
220,000
How much is the deprecation in 2022? *
220,000
190,000
200,000
310,000
How much is the depreciation in 2024? *
134,214
200,000
128,500
Nil
Case 2: Assuming the company is using revaluation model, answer the following:
How much is the depreciation in 2024? *
200,000
Nil
128,500
134,214
How much is the deprecation in 2022? *
310,000
190,000
200,000
220,000
How much is the depreciation for 2021? *
220,000
299,000
200,000
Nil
How much is the revaluation surplus on January 1, 2022? *
990,000
Nil
300,000
200,000
How much is the impairment loss in 2024? *
680,500
Nil
660,500
1,450,500
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Essentials Of Forensic Accounting
Authors: Michael A Crain, William S Hopwood
2nd Edition
1948306441, 978-1948306447
