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    Acctg26 Accounting Changes: Multiple Choice

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    linkin soy
    This document contains 5 multiple choice questions about accounting changes related to depreciation of equipment and property. The questions involve situations where the estimated useful life or residual value of assets were changed and ask about calculating depreciation expense for the year 2015 based on the new estimates.

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    Acctg26 Accounting Changes: Multiple Choice

    Uploaded by

    linkin soy
    174 views2 pages
    This document contains 5 multiple choice questions about accounting changes related to depreciation of equipment and property. The questions involve situations where the estimated useful life or residual value of assets were changed and ask about calculating depreciation expense for the year 2015 based on the new estimates.

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    Original Title

    ACCTG26 ACCOUNTING CHANGES

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    This document contains 5 multiple choice questions about accounting changes related to depreciation of equipment and property. The questions involve situations where the estimated useful life or residual value of assets were changed and ask about calculating depreciation expense for the year 2015 based on the new estimates.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    174 views2 pages

    Acctg26 Accounting Changes: Multiple Choice

    Uploaded by

    linkin soy
    This document contains 5 multiple choice questions about accounting changes related to depreciation of equipment and property. The questions involve situations where the estimated useful life or residual value of assets were changed and ask about calculating depreciation expense for the year 2015 based on the new estimates.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    ACCTG26 ACCOUNTING CHANGES

    Multiple Choice
    Identify the choice that best completes the statement or answers the question.

    ____ 1. Blue Company purchased a machine on January 1, 2012 for P6,000,000. At the date of acquisition, the
    machine had aa life of six years with no residual value. The machine is being depreciated on a straight
    line basis. On January 1, 2015, the entity determined that the mahine had a useful life of eight years from
    the date of acquisition with no residual value.

    What is the depreciation of the machine for 2015?


    a. 750,000 c. 375,000
    b. 600,000 d. 500,000
    ____ 2. On January 1, 2012, Flax Company purchased a machine for P5,280,000 and depreciated it by the straight
    line method using an estimated useful life of eight years with no residual value.

    On January 1, 2015, the entity determined that the machine had a useful life of six years from the date of
    acquisition and the residual value was P480,000.

    An accounting change was made in 2015 to reflect these additional data.

    What is the accumulated depreciation for the machine on December 31, 2015?
    a. 2,920,000 c. 3,200,000
    b. 3,080,000 d. 3,520,000
    ____ 3. On January , 1, 2013, Milan Company purchased an equipment for P6,000,000. The equipment had been
    depreciated using the straight line with residual value of P600,000 and useful lie of 20 years. On January
    1, 2015, the entity determined that the remaining useful life is 10 years and the residual values is
    P800,000.

    What is the depreciation for 2015?


    a. 270,000 c. 466,000
    b. 546,000 d. 582,500
    ____ 4. On January 1, 2011, Roma Company purchased equipment for P4,000,000. The equipment has a useful
    life of 10 years and a residual value of P400,000.

    On January 1, 2015, the entity determined that the useful life of the equipment ws 12 years from the date
    of acquisition and the residual value was P460,000.

    What is the depreciation of the equipment for 2015?


    a. 175,000 c. 360,000
    b. 262,500 d. 300,000
    ____ 5. Acute Company wsa incorporated on January 1, 2012. In preparing the financial statements for the year
    ended December 31, 2014, the entity used the following original cost and useful life for the property,
    plant and equipment.
    Original cost Useful life
    Building 15,000,000 15 years
    Machinery 10,500,000 10 years
    Furniture 3,500,000 7 years

    On January 1, 2015, the entity determined that the remaining useful life is 10 years for the building, 7
    years for the machinery and 5 years for the furniture.

    The entity used the straight line method of depreciation with no residual value.

    What is the total depreciation for 2015?


    a. 2,650,000 c. 2,550,000
    b. 3,700,000 d. 3,500,000

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