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Question - A building was constructed and finished on January 1, 2014. The total cost is P8,600,000. It was estimated to last up to January 1, 2054 with salvage value at P600,000. Depreciation is on a straight-line method. On February 1, 2016, repairs costing P50,000 were made on the building. The repairs did not increase the value nor the life or the building. During 2019, after the financial statements for 2018 have been issued, it was estimated that the building would las up to January 1, 2019 without any change in the estimated residual value. On December 31, 2019, the building was sold for P7,500,000.
Required -
1. What is the depreciation charge for 2019?
2. How much is the gain or (loss) as a result of the sale of the building?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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