SPN Limited acquired an equipment on 1 January 2010 for RM100,000. The equipment depreciated at 10%...

SPN Limited acquired an equipment on 1 January 2010 for RM100,000. The equipment depreciated at 10% per annum on a straight-line basis for 2015 and 2016. As of 31 December 2016, an impairment loss of RM30,000 was recognized during an impairment procedure. At 31 December 2018, this impairment was reversed. Required: Prepare respective journal entries for the situation above

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ekkarill92 answered 1 year ago

On January 1, 2016, SugarBear Company acquired equipment costing $150,000, which will be depreciated on the...

On January 1, 2016, SugarBear Company acquired equipment costing $150,000, which will be depreciated on the assumption that the equipment will be useful for five years and have a residual value of $12,000. The estimated output from this equipment is as follows: 2016 - 15,000 units; 2017 - 24,000 units; 2018 - 30,000 units; 2019 - 28,000 units; 2020 - 18,000 units. The company is now considering possible methods of depreciation for this asset. Required: a.) Calculate what the depreciation...

Equipment was acquired on January 1, 2014, at a cost of $170,000. The equipment was originally...

Equipment was acquired on January 1, 2014, at a cost of $170,000. The equipment was originally estimated to have a salvage value of $10,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2016, using the straight-line method. On January 1, 2017, the estimated salvage value was revised to $16,000 and the useful life was revised to a total of 8 years. Determine the depreciation expense for 2017.

Mace Company acquired equipment that cost $60,000, which will be depreciated on the assumption that the...

Mace Company acquired equipment that cost $60,000, which will be depreciated on the assumption that the equipment will last six years and have a $4,000 residual value. Component parts are not significant and need not be recognized and depreciated separately. Several possible methods of depreciation are under consideration. Required: 1. Prepare a schedule that shows annual depreciation expense for the first two years, assuming the following (Round your answer to nearest whole dollar.): Declining-balance method, using a rate of 30%....

Rebecca Company acquired an equipment on a 10-year non‑cancelable lease on January 1, 20X1. There were...

Rebecca Company acquired an equipment on a 10-year non‑cancelable lease on January 1, 20X1. There were annual lease payments of $100 at the end of each of the ten years. The market interest rate was 10% compounded annually. Assume that the lease year coincides with the fiscal year. Present value of $1 annuity (n=10, i=10%) = 6.1446. Note that the useful life of the equipment is 12 years. According to GAAP, is the above lease a capital or an operating...

Question (1) On January 1, 2010, XYZ Co purchased equipment for $550,000. XYZ expects the equipment...

Question (1) On January 1, 2010, XYZ Co purchased equipment for $550,000. XYZ expects the equipment to remain useful for 5 years and to have a residual value of $50,000. The company uses the straight line method to depreciate its equipment. The company sold the equipment on January 1, 2012 for $370,000 for cash. Required: Compute the annual Depreciation expense for each of 2010 and 2011. 2A: Record the journal entry for Depreciation in 2011. Date Accounts DR CR 12/31/2011...

Parnell Company acquired construction equipment on January 1, 2017, at a cost of $75,200. The equipment...

Parnell Company acquired construction equipment on January 1, 2017, at a cost of $75,200. The equipment was expected to have a useful life of five years and a residual value of $11,000 and is being depreciated on a straight-line basis. On January 1, 2018, the equipment was appraised and determined to have a fair value of $70,600, a salvage value of $11,000, and a remaining useful life of four years. In measuring property, plant, and equipment subsequent to acquisition under...

Parnell Company acquired construction equipment on January 1, 2017, at a cost of $76,000. The equipment...

Parnell Company acquired construction equipment on January 1, 2017, at a cost of $76,000. The equipment was expected to have a useful life of six years and a residual value of $10,000 and is being depreciated on a straight-line basis. On January 1, 2018, the equipment was appraised and determined to have a fair value of $70,200, a salvage value of $10,000, and a remaining useful life of five years. In measuring property, plant, and equipment subsequent to acquisition under...

Parnell Company acquired construction equipment on January 1, 2017, at a cost of $72,700. The equipment...

Parnell Company acquired construction equipment on January 1, 2017, at a cost of $72,700. The equipment was expected to have a useful life of five years and a residual value of $12,000 and is being depreciated on a straight-line basis. On January 1, 2018, the equipment was appraised and determined to have a fair value of $67,800, a salvage value of $12,000, and a remaining useful life of four years. In measuring property, plant, and equipment subsequent to acquisition under...

Parnell Company acquired construction equipment on January 1, 2017, at a cost of $71,700. The equipment...

Parnell Company acquired construction equipment on January 1, 2017, at a cost of $71,700. The equipment was expected to have a useful life of five years and a residual value of $10,000 and is being depreciated on a straight-line basis. On January 1, 2018, the equipment was appraised and determined to have a fair value of $67,700, a salvage value of $10,000, and a remaining useful life of four years. In measuring property, plant, and equipment subsequent to acquisition under...

Parnell Company acquired construction equipment on January 1, 2017, at a cost of $75,000. The equipment...

Parnell Company acquired construction equipment on January 1, 2017, at a cost of $75,000. The equipment was expected to have a useful life of five years and a residual value of $13,000 and is being depreciated on a straight-line basis. On January 1, 2018, the equipment was appraised and determined to have a fair value of $69,300, a salvage value of $13,000, and a remaining useful life of four years. In measuring property, plant, and equipment subsequent to acquisition under...

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