Required:Compute for the following:Gain or loss on sale of Asset PTotal depreciation expense for 2021Adjusted cost of PPE as of Dec. 31, 2021Carrying amount of PPE as of Dec. 31, 2021 Unseld, Inc.'s property, plant and equipment at Dec. 31, 2020:PP175,000RP255,0002016Original costYear PurchasedUseful lifeSalvage valueDepreciationmethodP400,000201910 yearsP25,000Double-decliningbalanceP400,0002017201510 yearsP15,50075,000 hoursP15,00015 yearsP25,000SYDActivityStraight-lineAdditional information:1. In the year an asset is purchased, Unseld, Inc. does not record anydepreciation expense on the asset.2. In the year an asset is retired or traded in, Unseld, Inc. takes fullyear depreciation on the asset.3. On May 5, Asset P was sold for P65,000 cash.4. Asset R was used for 10,500 hours during 2021. Accumulatedusage as of Dec. 31, 2020 is 40,800 hours.5. On Dec. 31, before computing depreciation expense on Asset T,the management of Unseld, Inc. determined that the useful liferemaining from Jan. 1, 2021 is only 10 years.6. On Dec. 31, it was discovered that a plant asset purchased in 2020had been expensed completely in that year.P110,000 and has useful life of :10 years and no salvage value.Management has decided to use the double-declining balance forthis asset, which can be referred to as "Asset I."This asset costsRequired:Compute or the following:1. Gain or loss on sale of Asset P2. Total depreciation expense for 20213. Adjusted cost of PPE as of Dec. 31, 20214. Carrying amount of PPE as of Dec. 31, 2021

Unseld, Inc.'s property, plant and equipment at Original cost Year Purchased Useful life Salvage value P P175,000 2015 10 years P15,500 SYD Depreciation method Additional information: R P255,000 2016 75,000 hours P15,000 Activity Dec. 31, 2020: I P400,000 2017 15 years P25,000 Straight-line с P400,000 2019 10 years P25,000 Double-declining balance

Unseld, Inc.'s property, plant and equipment at Original cost Year Purchased Useful life Salvage value P P175,000 2015 10 years P15,500 SYD Depreciation method Additional information: R P255,000 2016 75,000 hours P15,000 Activity Dec. 31, 2020: I P400,000 2017 15 years P25,000 Straight-line с P400,000 2019 10 years P25,000 Double-declining balance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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