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    Intermediate Accounting Midterm Examination Answer The Following Questions. Show Your Solutions

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    Renalyn Paras
    This document contains an intermediate accounting midterm exam with 30 multiple choice problems. It involves questions about calculating depreciation expense for various assets under different scenarios where useful lives and depreciation methods have changed over time. The student is asked to show their work and provide the depreciation expense or total charge against income for specific assets and years.

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    Intermediate Accounting Midterm Examination Answer The Following Questions. Show Your Solutions

    Uploaded by

    Renalyn Paras
    528 views3 pages
    This document contains an intermediate accounting midterm exam with 30 multiple choice problems. It involves questions about calculating depreciation expense for various assets under different scenarios where useful lives and depreciation methods have changed over time. The student is asked to show their work and provide the depreciation expense or total charge against income for specific assets and years.

    Original Title

    INTERMEDIATE ACCOUNTING_MIDTERM_2019-2020_2nd semester_PART6

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    This document contains an intermediate accounting midterm exam with 30 multiple choice problems. It involves questions about calculating depreciation expense for various assets under different scenarios where useful lives and depreciation methods have changed over time. The student is asked to show their work and provide the depreciation expense or total charge against income for specific assets and years.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    528 views3 pages

    Intermediate Accounting Midterm Examination Answer The Following Questions. Show Your Solutions

    Uploaded by

    Renalyn Paras
    This document contains an intermediate accounting midterm exam with 30 multiple choice problems. It involves questions about calculating depreciation expense for various assets under different scenarios where useful lives and depreciation methods have changed over time. The student is asked to show their work and provide the depreciation expense or total charge against income for specific assets and years.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    INTERMEDIATE ACCOUNTING

    MIDTERM EXAMINATION

    ANSWER THE FOLLOWING QUESTIONS. SHOW YOUR SOLUTIONS.

    PART 6

    PROBLEM 26

    Savior Company purchased a machinery on January 1, 2014 for 7,200,000.

    The machinery had a useful life of 10 years with no residual value and was
    depreciated using the straight line method.

    In 2017, a decision was to change the depreciation method from straight


    line to sum of years’ digits method. The useful life and residual value
    remained unchanged.

    What is depreciation for 2017? ___________________

    PROBLEM 27

    Red Company purchased a machine on January 1, 2014 for 6,000,000. At


    the date of acquisition, the machine had a life of six years with no residual
    value. The machine was depreciated on a straight line basis.

    On January 1, 2017, the entity determined that the machine had a useful life
    of eight years from the date of acquisition with no residual value.

    What is the depreciation of the machine for 2017? _________________

    PROBLEM 28

    Cute Company was incorporated on January 1, 2014. In preparing the


    financial statements for the year ended December 31, 2016, the entity used
    the following original cost and useful life for the property, plant and
    equipment:

    Original cost Useful life


    Building 15,000,000 15 yrs
    Machinery 10,500,000 10 yrs
    Furniture 3,500,000 7 yrs

    On January 1, 2017, the entity determined that the remaining useful life is
    10 years for the building, 7 years for the machinery and 5 years for the
    furniture.

    The entity used the straight line method of depreciation with no residual
    value.

    What is the total depreciation for 2017? __________________

    PROBLEM 29

    On January 1, 2015, Brazilia Company purchased for 4,800,000 a machine


    with a useful life of ten years and a residual value of 200,000.

    The machine was depreciated by the double declining balance and the
    carrying amount of the machine was 3,072,000 on December 31, 2016.

    The entity changed to the straight line method on January 1, 2017. The
    residual value did not change.

    What is the depreciation expense on this machine for 2017?


    __________________

    PROBLEM 30

    On January 1, 2017, Canon Company decided to decrease the estimated


    useful life of an existing patent from 10 years to 8 years.

    The patent was purchased on January 1, 2012 for 3,000,000. The estimated
    residual value is zero.

    The entity decided on January 1, 2017 to change the depreciation method


    from an accelerated method to the straight line method.

    On January 1, 2017, the cost of an equipment is 8,000,000 and the


    accumulated depreciation is 3,400,000.

    The remaining useful life of the equipment on January 1, 2017 is 10 years


    and the residual value is 200,000.

    What is the total charge against income for 2017 as a result of the
    accounting changes? ______________

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