question archive Light Company bought a machine for ?300,000 on January 1, 20x8
Light Company bought a machine for ?300,000 on January 1, 20x8
Subject:AccountingPrice:3.87 Bought7
Light Company bought a machine for ?300,000 on January 1, 20x8. The machine's useful life is 10 years and it is estimated to have a zero residual value and is depreciated using the straight-line method.
The revalued amount of the machine is as follows:
December 31 Fair values of the machine
20x8 ? 360,000
20x9 335,000
2x10 320,000
The enacted tax rate was 30% for each year.
The revaluation surplus in the equity section of Light Company's December 31, 20x8 statement of financial position is?
The amount of depreciation expense to be recognized in 20x9 is?
The amount of revaluation surplus transferred to retained earnings in 20x9 is?
The revaluation surplus in the equity section of Light Company's December 31, 2x10 statement of financial position is?
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer:
The revaluation surplus in the equity section of Light Company's December 31, 20x8 statement of financial position is? Ans. P 90,000
The amount of depreciation expense to be recognized in 20x9 is? Ans. P 40,000
The amount of revaluation surplus transferred to retained earnings in 20x9 is? Ans. P 75,000
The revaluation surplus in the equity section of Light Company's December 31, 2x10 statement of financial position is? Ans. P 26,875
PFA
