eo
©
Module Learning Activity 1.7 (Computation - Depreciation) - AY20-21 SUMMER AC1A ACC4 - INTERMEDIATE ACCOUNTING
1B - Module Learning Activity 1.7 (Computation - Depreciation) - University of Batangas
https://ubian.ub.edu.ph/student_take_quiz_assignment/display/23659573?part=11&results=261286246#
AY20-21 SUMMER
WS
g
s:
©
ACIA ACC4 - INTERMEDIATE ACCOUNTING 1B
@
Nel
orem
»)
v
Questions
renner
Question
1
Beta Corporation purchased a depreciable asset for P630,000 on January 1, 2010. The estimated salvage value is P63,000, and the estimated total
©
Question2
e@
Question 3
e
Question 4
useful life is 9 years. The straight-line method is used for depreciation. In 2013, Beta changed its estimates to a useful life of 5 years with a salvage
value of P105,000. What is 2013 depreciation expense?
e
Question 5
Response: P168,000
@
Question 6
@
Edit
Question
2
Pike Co. purchased a machine on July 1, 2012, for P800,000. The machine has an estimated useful life of five years and a salvage value of
P160,000.
The machine is being depreciated from the date of acquisition by the 150% declining-balance method.
For the year ended December 31,
e@
Question 7
e
Question 8
e
Question 9
®
Question 10
@
Endof quiz
2012, Pike should record depreciation expense on this machine of
Response: P120,000.
@
Edit
Question 3
=
Hart Company purchased a depreciable asset for P450,000. The estimated salvage value is P30,000, and the estimated useful life is 8 years. The
double-declining balance method will be used for depreciation. What is the depreciation expense for the second year on this asset?
Response: P84,375
f
Edit
Question 4
= Gates Co. purchased machinery on January 2, 2007, for P660,000. The straight-line method is used and useful life is estimated to be 10 years, with
a P60,000 salvage value. At the beginning of 2013 Gates spent P144,000 to overhaul the machinery. After the overhaul, Gates estimated that the useful
2 Type here to search
me-»pegQge@e@eaaqge#@st
4 31°C Lightrain
+
BZ)
é
40:36
ENG yoo,
@
FD
eo
+\@o0
G
©
Module Learning Activity 1.7 (Computation - Depreciation) - AY20-21 SUMMER AC1A ACC4 - INTERMEDIATE ACCOUNTING
1B - Module Learning Activity 1.7 (Computation - Depreciation) - University of Batangas
_https://ubian.ub.edu.ph/student_take_quiz_assignment/display/23659573?part=1 1&results=261286246#
AY20-21 SUMMER
9
WS
ACIA ACC4 - INTERMEDIATE ACCOUNTING 1B
Nel
orem
»)
v
Question 4
=
Gates Co. purchased machinery on January 2, 2007, for P660,000. The straight-line method is used and useful life is estimated to be 10 years, with
a P60,000 salvage value. At the beginning of 2013 Gates spent P144,000 to overhaul the machinery. After the overhaul, Gates estimated that the useful
life would be extended 4 years (14 years total), and the salvage value would be P30,000. The depreciation expense for 2013 should be
Response: P51,750.
@
Edit
Question 5
=
On April 1, 2011, Verlin Co. purchased new machinery for P300,000.
computed
The machinery has an estimated useful life of five years, and depreciation is
by the sum-of-the-years‘-digits method. The accumulated depreciation on this machinery at March 31, 2013, should be
Response: P180,000.
#
Edit
Question 6
A plant asset has a cost of P32,000 and a salvage value of P8,000. The asset has a three-year life. If depreciation in the third year amounted to
P4,000, which depreciation method was used?
Response: Sum-of-the-years'-digits
@
Edit
Question 7
=
On January 1, 2006, Forbes Company purchased equipment at a cost of P100,000. The equipment was estimated to have a salvage value of
P10,000 and it is being depreciated over eight years under the sum-of-the-years’-digits method. What should be the charge for depreciation of this
equipment for the year ended December 31, 2013?
Response: P2,500
2% Type here
to search
hea
|
©
ea
e
0g
e
i
~¥
34°C Light rain
©
mw
@
0)
Enc
10:36 am
09/07/2021
e *
@
+\@o0
©
Module Learning Activity 1.7 (Computation - Depreciation) - AY20-21 SUMMER AC1A ACC4 - INTERMEDIATE ACCOUNTING 1B - Module Learning Activity 1.7 (Computation - Depreciation) - University of Batangas
https://ubian.ub.edu.ph/student_take_quiz_assignment/display/23659573?part=11&results=261286246#
AY20-21 SUMMER
WS
g
s:
_
©
x
@
ACIA ACC4 - INTERMEDIATE ACCOUNTING 1B
Question 8
On January 3, 2011, Munoz Co. purchased machinery. The machinery has an estimated useful life of eight years and an estimated salvage value of
P60,000. The depreciation applicable to this machinery was P130,000 for 2013, computed by the sum-of-the-years-digits method. The acquisition cost
of the machinery was
Response: P840,000.
@
Edit
Question 9
Kinder Company purchased a depreciable asset far P280,000. The estimated salvage value is P14,000, and the estimated useful life is 10,000
hours. Kinder used the asset for 1,100 hours in the current year. The activity method will be used for depreciation. What is the depreciation expense on
this asset?
Response: P29,260
@
Edit
Question 10
Rivera Company purchased a tooling machine on January 3, 2006 for P700,000. The machine was being depreciated on the straight-line method
over an estimated useful life of 10 years, with no salvage value. At the beginning of 2013, the company paid P175,000 to overhaul the machine. As a
result of this improvement, the company estimated that the useful life of the machine would be extended an additional 5 years (15 years total). What
should be the depreciation expense recorded for the machine in 2013?
Response: P48,125
@
Edit
2
e
0
a
=
2
31°C Lightrain
& mm @ )
Fs
1036a m
ENG 09/07/2021
e
F