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    INTACC2 - Chapter 29

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    Shane Tabunggao
    1. The document contains information about depreciation calculations for equipment and buildings. It provides original costs, accumulated depreciation, revaluation surpluses, estimated useful lives, and annual depreciation expenses. 2. One section shows the calculation of depreciation on the original cost of equipment and on the appreciated replacement cost over different time periods. 3. Another section calculates depreciation on a building using the proportional and elimination approaches to account for a revaluation surplus.

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    INTACC2 - Chapter 29

    Uploaded by

    Shane Tabunggao
    532 views4 pages
    1. The document contains information about depreciation calculations for equipment and buildings. It provides original costs, accumulated depreciation, revaluation surpluses, estimated useful lives, and annual depreciation expenses. 2. One section shows the calculation of depreciation on the original cost of equipment and on the appreciated replacement cost over different time periods. 3. Another section calculates depreciation on a building using the proportional and elimination approaches to account for a revaluation surplus.

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    INTACC2_Chapter 29

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    1. The document contains information about depreciation calculations for equipment and buildings. It provides original costs, accumulated depreciation, revaluation surpluses, estimated useful lives, and annual depreciation expenses. 2. One section shows the calculation of depreciation on the original cost of equipment and on the appreciated replacement cost over different time periods. 3. Another section calculates depreciation on a building using the proportional and elimination approaches to account for a revaluation surplus.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    532 views4 pages

    INTACC2 - Chapter 29

    Uploaded by

    Shane Tabunggao
    1. The document contains information about depreciation calculations for equipment and buildings. It provides original costs, accumulated depreciation, revaluation surpluses, estimated useful lives, and annual depreciation expenses. 2. One section shows the calculation of depreciation on the original cost of equipment and on the appreciated replacement cost over different time periods. 3. Another section calculates depreciation on a building using the proportional and elimination approaches to account for a revaluation surplus.

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    PROBLEM 29-2

    1. Annual depreciation 750,000/5years = 150,000


    3,000,000/150,000 or 5 years/25% = 20 years original useful life of equipment

    2. Equipment 1,800,000
    Accumulated Depreciation (1,800,000x25%) 450,000
    Revaluation Surplus 1,350,000

    3. Depreciation 3,600,000/15years 240,000


    Accumulated Depreciation 240,000

    Depreciation on cost 2,250,000


    Depreciation on appreciation 1,350,000
    Total depreciation 3,600,000

    4. Revaluation surplus (1,350,000/15years) 90,000


    Retained earnings 90,000

    COST REPLACEMENT COST APPRECIATION


    Equipment 3,000,000 4,800,000 1,800,000
    Acc. Dep - 25% 750,000 1,200,000 450,000
    CA/SV/RS 2,250,000 3,600,000 1,350,000

    PROBLEM 29-5
    Building 10,000,000
    Accumulated Depreciation 4,000,000
    Revaluation Surplus 6,000,000

    Depreciation (13,000,000/5yrs) 2,600,000


    Accumulated Depreciation 2,600,000

    Revaluation Surplus 1,200,000


    Retained Earnings (6,000,000/5yrs) 1,200,000

    Cost 20,000,000
    Residual Value 2,000,000
    Depreciable Amount 18,000,000
    6yrs
    Annual depreciation 3,000,000
    3 yrs
    Depreciation expense 9,000,000
    Carrying Amount 18,000,000
    Proportion of acc dep 50%
    to the original dep. Amount

    COST REPLACEMENT COST


    Building 20,000,000 30,000,000
    Residual Value 2,000,000 4,000,000
    Depreciable Amount 18,000,000 26,000,000
    Annual Depreciation (50%) 9,000,000 13,000,000
    Remaining depreciable amount 9,000,000 13,000,000
    PROBLEM 29-3
    PROPORTIONAL APPROACH
    Building (8,000,000-5,000,000) 3,000,000
    Accumulated Depreciation (3,000,000x25%) 750,000
    Revaluation Surplus 2,250,000
    # Gross replacement cost (6,000,000/75%) 8,000,000

    Depreciation (8,000,000/40 or 6,000,000/30) 200,000


    Accumulated Depreciation 200,000

    Revaluation Surplus 75,000


    Retained earnings (2,250,000/30 years) 75,000

    ELIMINATION APPROACH
    Accumulated Depreciation 1,250,000
    Building 1,250,000

    Building (6,000,000-3,750,000) 2,250,000


    Revaluation Surplus 2,250,000

    Depreciation (6,000,000/30yrs) 200,000


    Accumulated Depreciation 200,000

    Revaluation Surplus 75,000


    Retained Earnings (2,250,000/30yrs) 75,000
    MENT COST APPRECIATION
    0,000 10,000,000
    0,000
    0,000 10,000,000
    0,000 4,000,000
    6,000,000

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