Replacement method to evaluate depreciation

Assignment Help Financial Accounting

Reference no: EM133816

Question :

Robertson Inc. prepares its financial statements according to International Financial Reporting Standards. At the end of its 2011 fiscal year, the company selects to revalue its equipment. The equipment cost $540,000, had accumulated depreciation of $240,000 at the end of the year after recording annual depreciation, and had a fair value of $330,000. After the revaluation, the accumulated depreciation account may have a balance of:

$240,000.

$264,000.

$270,000.

None of the above.

Canliss Mining uses the retirement method to evaluate depreciation on its office equipment. During 2009, its first year of operations, office equipment was purchased at a cost of $14,000. Useful life of the equipment averages 4 years and no salvage value is anticipated. In 2011, equipment costing $5,000 was sold for $600 and replaced with new equipment costing $6,000. Canliss could record 2011 depreciation of:

$3,500.

$4,400.

$5,400.

None of the above.

Canliss Mining uses the replacement method to evaluate depreciation on its office equipment. During 2009, its first year of operations, office equipment was purchased at a cost of $14,000. Useful life of the equipment averages 4 years and no salvage value is anticipated. In 2011, equipment costing $5,000 was sold for $600 and replaced with new equipment costing $6,000. Canliss would record 2011 depreciation of:

$3,500.

$4,400.

$5,400.

Reference no: EM133816

Questions Cloud

What factors are important to the success of cafe express : What factors are important to the success of Cafe Express? Which of these are controllable by Thomas? Does it matter?

Prepare an income statement for the year : Prepare an income statement for the year ended 31 st December, 20X8, by using direct costing. Prepare an income statement for the year ended 31 st December, 20X8, by using absorption costing.

Determine the expected full cost of the surenex engagement : Determine the expected full cost of the Surenex engagement, including an allocation of overhead. Determine the lowest amount that Connie can bill on this engagement without hurting company profit?

Evaluate pts tax for its last year using the corporate tax : Evaluate the net increase in Corporation H's deferred tax assets or deferred tax liabilities (identify which) for the year.

Replacement method to evaluate depreciation : Canliss Mining uses the replacement method to evaluate depreciation on its office equipment.

Determine what balance would be included : Determine what balance would be included in a December 1, 2010 consolidation.

Prepare all required journal entries : Prepare all required journal entries that the city should make for each transaction.

Charter services in the airline industry : Write short notes on the following (a) Charter Services in the airline industry (b) Deregulation in international air transport (c) The travel agent

Distance between focal plane and lens : Distance between focal plane and lens

User Account

All Pages