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Pls answer the questions with your detailed explanations, it's much appreciated! Evans Co purchased a machine with an estimated useful life of ten years for
Pls answer the questions with your detailed explanations, it's much appreciated!
Evans Co purchased a machine with an estimated useful life of ten years for $76,000 on 30 September 20X5. The machine had a residual value of $16,000. What are the ledger entries to record the depreciation charge for the machine in the year ended 30 September 208 ? Banter Co purchased an office building on 1 January 201. The building cost was $1,600,000 and this was depreciated by the straight line method at 2% per year, assuming a 50-year life and nil residual value. The building was revalued to $2,250,000 on 1 January 20X6. The useful life was not revised. The excess depreciation charge will be transferred from the revaluation surplus to retained earnings each year. The company's financial year ends on 31 December. What is the balance on the revaluation surplus at 31 December 206? $ (2 marks) Digger Co purchased an asset on 1 January 203 at a cost of $1,000,000. It is depreciated over 50 years by the straight line method (nil residual value), with a proportionate charge for depreciation in the year of acquisition and the year of disposal. At 31 December 20X4 the asset was re-valued to $1,200,000. There was no change in the expected useful life of the asset. The asset was sold on 30 June 205 for $1,195,000. What profit or loss on disposal of the asset will be reported in the statement of profit or loss of Digger Co for the year ended 31 December 20X5? Profit of $7,500 Profit of $235,000 Profit of $247,500 Loss of $5,000 (2 marks)Step by Step Solution
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