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    IA 1 Valix 2020 Ver. Problem 27-3 - Problem 27-4

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    Ariean Joy Dequiña
    This document provides depreciation information for various assets owned by a company. It includes the cost, residual value, depreciable amount, useful life, and annual depreciation for each asset. It then calculates the composite depreciation rate and life for the group of assets using the sum of their costs, depreciable amounts, and annual depreciation. Journal entries are provided to record composite depreciation expense, retirement of an asset from the group, and retirement and replacement of an asset.

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    IA 1 Valix 2020 Ver. Problem 27-3 - Problem 27-4

    Uploaded by

    Ariean Joy Dequiña
    897 views4 pages
    This document provides depreciation information for various assets owned by a company. It includes the cost, residual value, depreciable amount, useful life, and annual depreciation for each asset. It then calculates the composite depreciation rate and life for the group of assets using the sum of their costs, depreciable amounts, and annual depreciation. Journal entries are provided to record composite depreciation expense, retirement of an asset from the group, and retirement and replacement of an asset.

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    This document provides depreciation information for various assets owned by a company. It includes the cost, residual value, depreciable amount, useful life, and annual depreciation for each asset. It then calculates the composite depreciation rate and life for the group of assets using the sum of their costs, depreciable amounts, and annual depreciation. Journal entries are provided to record composite depreciation expense, retirement of an asset from the group, and retirement and replacement of an asset.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    897 views4 pages

    IA 1 Valix 2020 Ver. Problem 27-3 - Problem 27-4

    Uploaded by

    Ariean Joy Dequiña
    This document provides depreciation information for various assets owned by a company. It includes the cost, residual value, depreciable amount, useful life, and annual depreciation for each asset. It then calculates the composite depreciation rate and life for the group of assets using the sum of their costs, depreciable amounts, and annual depreciation. Journal entries are provided to record composite depreciation expense, retirement of an asset from the group, and retirement and replacement of an asset.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    PROBLEM 27 - 3 (IAA)

    Annual
    Cost Residual Value Depreciable Amount Useful Life in Years Depreciation
    Machinery 310000 10000 300000 5 60000
    Office Equipment 110000 10000 100000 10 10000
    Buildin
    g 1600000 100000 1500000 15 100000
    Delivery Equipment 430000 30000 400000 4 100000
    2450000 150000 2300000 270000

    a. Composite Depreciation
    Rate b. Composite Life
    Total Depreciable
    Total Annual Depreciation 270000 Amount 2300000
    Total Annual
    Total Cost 2450000 Depreciation 270000
    0.11020408 8.51851851
    Rate 2 Life 9

    c. Journal Entry
    Depreciation 270000
    Accumulated
    Depreciation 270000
    PROBLEM 27 - 4 (IAA)
    Annual
    Cost Residual Value Depreciable Amount Useful Life in Years Depreciation
    Building 6100000 100000 6000000 20 300000
    Machinery 2550000 50000 2500000 5 500000
    Equipment 1030000 30000 1000000 10 100000
    9680000 180000 9500000 900000
    a. Composite Depreciation
    Rate b. Composite Life
    Total Depreciable
    Total Annual Depreciation 900000 Amount 9500000
    Total Annual
    Total Cost 9680000 Depreciation 900000
    0.09297520 10.5555555
    Rate 7 Life 6

    c. Journal Entry (Composite


    Method)
    Depreciation 900000
    Accumulated
    Depreciation 900000

    d. Journal Entry (Retirement of Asset in the


    Group)
    Cash 40000
    Accumulated Depreciation 2510000
    Machinery 2550000

    e. Journal Entry (Retirement and Replacement of Asset)


    Depreciation 663090
    Accumulated Depreciation 663090

    Computation
    :
    Total Cost 9680000 7130000
    Cost of Asset 2550000 0.093
    7130000 663090

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