Actividad 4:
Cap. 10 Propiedad, planta y equipo
E10.2 (LO1, 2) (Acquisition Costs of Realty) Pollachek Co. purchased land as a factory site for
$450,000. The process of tearing down two old buildings on the site and constructing the factory
required 6 months. The company paid $42,000 to raze the old buildings and sold salvaged lumber
and brick for $6,300. Legal fees of $1,850 were paid for title investigation and drawing the
purchase contract. Pollachek paid $2,200 to an engineering firm for a land survey, and $65,000 for
drawing the factory plans. The land survey had to be made before definitive plans could be drawn.
Title insurance on the property cost $1,500, and a liability insurance premium paid during
construction was $900. The contractor's charge for construction was $2,740,000. The company
paid the contractor in two installments: $1,200,000 at the end of 3 months and $1,540,000 upon
completion. Interest costs of $170,000 were incurred to finance the construction.
Instructions
Determine the cost of the land and the cost of the building as they should be recorded on the
books of Pollachek Co. Assume that the land survey was for the building.
TERRENO
$450,000
$42,000
-$6,300
$1,850
$1,500
Total = $489,050
EDIFICIO
$2,200
$65,000
$900
$2,740,000
$170,000
Total = $2,978,100
Cap. 11. Depreciación, deterioro y agotamiento.
E11.5 (LO1, 2) (Depreciation Computations—Four Methods) Maserati SpA purchased a new
machine for its assembly process on August 1, 2019. The cost of this machine was €150,000. The
company estimated that the machine would have a residual value of €24,000 at the end of its
service life. Its life is estimated at 5 years, and its working hours are estimated at 21,000 hours.
Year-end is December 31.
Instructions
Compute the depreciation expense under the following methods. Each of the following should be
considered unrelated.
a. Straight-line depreciation for 2019.
= (€150,000 - €24,000) * 100% / 5 años = €25,200 * 5/12 = €10,500
b. Activity method for 2020, assuming that machine usage was 800 hours.
(€150,000 − €24,000)
= €6 𝑝𝑜𝑟 ℎ𝑜𝑟𝑎
21,000
800 horas * €6 = €4,800
c. Sum-of-the-years'-digits for 2020.
=
5∗(5+1)
= 15
2
Años de uso
1
2
Proporción
5/15 *
4/15 *
€126,000 =
€126,000 =
€42,000
€33,600
€150,000 =
€90,000 =
€60,000
€36,000
2020
7/12 * €42,000 = €24,500
5/12 * €33,600 = €14,000
TOTAL = €38,500
d. Double-declining-balance for 2020.
𝐷𝑜𝑏𝑙𝑒 % =
100%
∗ 2 = 40%
5 𝑎ñ𝑜𝑠
Años de uso
1
2
2020
Proporción
40% *
40% *
7/12 * €60,000 = €35,000
5/12 * €36,000 = €15,000
TOTAL = €50,000
E11.20 (LO3) (Impairment) The management of Sprague Inc. was discussing whether certain
equipment should be written off as a charge to current operations because of obsolescence. This
equipment has a cost of $900,000 with depreciation to date of $400,000 as of December 31, 2019.
On December 31, 2019, management projected the present value of future net cash flows from
this equipment to be $300,000 and its fair value less cost of disposal to be $280,000. The company
intends to use this equipment in the future. The remaining useful life of the equipment is 4 years.
Instructions
a. Prepare the journal entry (if any) to record the impairment at December 31, 2019.
2019
Dr.
Pérdida por deterioro
Cr.
$200,000
Deterioro acumulado
$200,000
b. Where should the gain or loss (if any) on the write-down be reported in the income
statement?
Otros gastos y pérdidas
c. At December 31, 2020, the equipment's recoverable amount is $270,000. Prepare the
journal entry (if any).
2020
Dr.
Cr.
Deterioro acumulado
Ganancia x recuperación de deterioro
$45,000
$45,000
Cost
$900,000
Accumulated depreciation
$400,000
Value-in-use
$300,000
Fair value less cost of disposal
$280,000
Costo
$900,000
(-) Depr. Acum.
$400,000
(=) Valor Neto
$500,000
Deterioro
$500,000 - $300,000 = $200,000
Equipo
$900,000
(-) Depr. Acum.
$400,000
(-) Deterioro
$200,000
(=) Valor Neto
$300,000
Dep. = ($300,000 - $0) / 4 años = $75,000 annual
Equipo
$900,000
(-) Depr.
$475,000
(-) Deterioro
$200,000
(=) Valor Neto
$225,000
Valor recuperable = $270,000
Recuperación de deterioro = $270,000 - $225,000 = $45,000
Equipo
$900,000
(-) Depr.
$475,000
(-) Deterioro
$155,000
(=) Valor Neto
$270,000