Please answer. ASAP

11. Takatak, Inc., uses the group depreciation method for

its furniture account. The depreciation rate used for

furniture is 21%. The balance in the furniture account

on December 31, 2019, was P125,000, and the

balance in Accumulated Depreciation - Furniture was

P61,000. The following purchases and dispositions of

furniture occurred in 2020 (assume that all purchases

and disposals occurred at the beginning of each year).

Purchased Cost Selling Price

P35,000 P27,000 P8,000

The carrying amount of furniture at December 31,

2020 is

a. P71,070 c. P63,070

b. P64,750 d. P44,070

12. Kuya Company uses hand tools in its manufacturing

activities. On January 1, 2020, there are 800 of such

tools on hand at a cost of P200 each. Acquisition and

retirement in the year 2020 are:

Acquisition Retirement

Estimated value

at year end

400 @ P300 300 @ P50 P200,000

Assuming that retirements are on a first-in, first-out

basis, which of the following statements is true?

a. The depreciation using the retirement method is

P60,000.

b. The depreciation using the replacement method is

P90,000.

c. The depreciation using the inventory method is

P75,000.

d. The retirement method yields the lowest amount of

depreciation compared to replacement and

inventory methods.

13. Pantabangan Company takes a full year's depreciation

in the year of an assets acquisition, and no

depreciation in the year of disposition. Data relating to

one depreciable asset acquired in 2018, with residual

value of P900,000 and estimated useful life of 8 years,

at December 31, 2019 are:

Cost P9,900,000

Accumulated depreciation 3,750,000

Using the same depreciation method in 2018 and

2019, how much depreciation should Pantabangan

record in 2020 for this asset?

a. P1,125,000 c. P1,650,000

b. P1,250,000 d. P1,500,000

14. The residual value, the useful life of an asset and the

depreciation method applied to an asset shall be

reviewed

a. At least at each financial year-end.

b. At least every two years.

c. At least every three years.

d. Only if there is an indication they may have

changed since the most recent annual reporting

date.

15. As of January 1, 2020, Seniors decided to change the

method of computing depreciation on its sole piece of

equipment from the sum-of-the-years' digits method

to the straight-line method. The equipment, acquired

in January 2017 for P520,000, had an estimated life of

five years and a salvage value of P20,000. The

amount of the depreciation expense for 2020 is

a. P100,000 c. P50,000

b. P 60,000 d. P42,000

16. Useful life of Property, Plant and Equipment is:

a. The period over which an asset is expected to be

available for use by an entity.

b. The number of production or similar units expected

to be obtained from the asset by an entity.

c. Either a or b.

d. Neither a nor b.

17. Which of the following factors are considered in

determining the useful life of an asset?

I. Expected usage of the asset

II. Expected physical wear and tear

III. Technical or commercial obsolescence

IV. Legal or similar limits on the use of the asset

a. I, II, III and IV

b. I, II and III only

c. I, II and IV only

d. I and II only

18. On January 1, 2018, Paete Company signed a 12-year

lease for a building. Paete has an option to renew the

lease for an additional 8-year period on or before

January 1, 2022. During January 2020, Paete made

substantial improvements to the building. The cost of

the improvements was P3,600,000, with an estimated

useful life of 15 years. At December 31, 2020, Paete

intended to exercise the renewal option. Paete has

taken a full year's amortization on this improvement.

What should be the depreciation charge for the year

ended 31 December 2020?

a. P360,000 c. P240,000

b. P300,000 d. P200,000

19. Which statement is incorrect regarding derecognition

of property, plant and equipment?

a. Derecognition is the removal of a previously

recognized asset from an entity's statement of

financial position.

b. An asset should be removed from the statement of

financial position on disposal or when it is

withdrawn from use and no future economic

benefits are expected from its disposal.

c. The gain or loss on disposal is the difference

between the net disposal proceeds and the

carrying amount and should be recognized in the

income statement.

d. Gains on disposal of property, plant and equipment

may be classified as revenue.

20. Entity A acquired an asset that had a cost of P130,000.

The asset is being depreciated over a 5-year period

using the sum-of-the-years' digit method. It has a

salvage value estimated at P10,000. The loss/gain if

the asset is sold for P38,000 at the end of the third

year is

a. P4,000 gain c. P68,000 loss

b. P20,000 loss d. P92,000 loss