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  • Problem C7

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    Lou Brad Ignacio
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    The document contains details on the deductible losses, other deductible expenses, and book values for various assets (labeled A through F). For each asset, there is information on the cost, depreciation, insurance payments, and resulting book values for years 20A1 and 20A2. The totals at the bottom summarize the amounts for deductible losses, other deductible expenses, and ending book values across all assets.

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    Problem-C7.xlsx

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    The document contains details on the deductible losses, other deductible expenses, and book values for various assets (labeled A through F). For each asset, there is information on the cost, depreciation, insurance payments, and resulting book values for years 20A1 and 20A2. The totals at the bottom summarize the amounts for deductible losses, other deductible expenses, and ending book values across all assets.

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    © All Rights Reserved
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    8 views6 pages

    Problem C7

    Uploaded by

    Lou Brad Ignacio
    The document contains details on the deductible losses, other deductible expenses, and book values for various assets (labeled A through F). For each asset, there is information on the cost, depreciation, insurance payments, and resulting book values for years 20A1 and 20A2. The totals at the bottom summarize the amounts for deductible losses, other deductible expenses, and ending book values across all assets.

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    © All Rights Reserved
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    of 6

    PARTICULARS Deductible Loss Other Deductible Expen

    20A1 20A2 20A1


    A Cost to Restore 1,200,000.00
    Depreciation Expense
    20A1: Jan to Jun 30 (2M/5*.50) 200,000.00
    20A1: Jul to Dec 31 (1.8M/4.5*.2) 200,000.00
    Total 400,000.00
    20A2: Jan to Dec 31 (1.6M/4)
    Book Value, 20A1 end
    Book Value, 20A2 end

    PARTICULARS Deductible Loss Other Deductible Expen


    20A1 20A2 20A1
    B Cost to Restore 1,200,000.00
    Insurance Received (1,000,000.00)
    Total 200,000.00

    Depreciation Expense, 20A1 (2M/5) 400,000.00


    Depreciation Expense, 20A2 (1.6M/4)

    Book Value, 20A1 end


    Book Value, 20A2 end

    PARTICULARS Deductible Loss Other Deductible Expen


    20A1 20A2 20A1
    C Cost of Equipment 600,000.00
    AD (500K/3*.5) (100,000.00)
    Net Book Value 500,000.00
    Restoration of Equipment 800,000.00

    NBV amount deductible 500,000.00

    Depreciation Expense, 20A1 1st Half (600k/3)*.5 100,000.00


    Depreciation Expense, 20A1 2nd Half (500k+300k)/2.5*.5 160,000.00
    260,000.00
    Depreciation Expense, 20A2 (800k/2.5)

    Book Value, 20A1 end


    Book Value, 20A2 end

    PARTICULARS Deductible Loss Other Deductible Expen


    20A1 20A2 20A1
    D Cost of Equipment 600,000.00
    AD (600K/3*.5) (100,000.00)
    Net Book Value 500,000.00
    Insurance Received 1,000,000.00
    Deductible -

    Net Book Value 500,000.00


    Incurred Cost Excess of NBV 300,000.00
    New NBV 800,000.00

    Depreciation 20A1:
    First Half (600k/3*.5) 100,000.00
    Second Half 800k/2.5*.5 160,000.00
    260,000.00
    Depreciation 20A2: 800k/2.5

    Book Value, 20A1 end


    Book Value, 20A2 end

    PARTICULARS Deductible Loss Other Deductible Expen


    20A1 20A2 20A1

    E -

    Deductible for 20A2:


    Cost 450,000.00
    AD (450K/3) (150,000.00) (450k/3) 150,000.00
    Net Book Value 300,000.00 (420k/2*9/12)
    Capital Expenditures 120,000.00
    Net Book Value, 20A1 end 420,000.00
    AD 20A2 (420K/2*9/12) (157,500.00)
    NBV as of breakdown 262,500.00
    Scrap (150,000.00)
    Deductible for 20A2: 112,500.00

    Book Value, 20A1 end


    Book Value, 20A2 end

    PARTICULARS Deductible Loss Other Deductible Expen


    20A1 20A2 20A1
    F Land and Old Building 3,500,000.00
    Demolition Cost 200,000.00
    Less: Scraps (120,000.00)
    Book Value of Land 3,580,000.00
    her Deductible Expenses Book Value
    20A2 20A1 20A2
    SU

    A
    B
    C
    400,000.00 D
    (2M-400K) 1,600,000.00 E
    (1.6M-400K) 1,200,000.00 F
    TOTAL
    her Deductible Expenses Book Value
    20A2 20A1 20A2

    400,000.00

    (2M-400K) 1,600,000.00
    (1.6M-400K) 1,200,000.00

    her Deductible Expenses Book Value


    20A2 20A1 20A2

    320,000.00

    (800k-160k) 640,000.00
    (640k-320k) 320,000.00

    her Deductible Expenses Book Value


    20A2 20A1 20A2
    320,000.00

    (800k-160) 640,000.00
    (640k-320k) 320,000.00

    her Deductible Expenses Book Value


    20A2 20A1 20A2

    157,500.00

    (450k-150k) 300,000.00
    -

    her Deductible Expenses Book Value


    20A2 20A1 20A2

    3,580,000.00 3,580,000.00
    SUMMARY OF ANSWERS FOR PROBLEM C7
    Deductible Loss Other Deductible Expenses Book Value
    20A1 20A2 20A1 20A2 20A1
    1,200,000.00 400,000.00 400,000.00 1,600,000.00
    200,000.00 400,000.00 400,000.00 1,600,000.00
    500,000.00 260,000.00 320,000.00 640,000.00
    260,000.00 320,000.00 640,000.00
    112,500.00 150,000.00 157,500.00 300,000.00
    3,580,000.00
    1,900,000.00 112,500.00 1,470,000.00 1,597,500.00 8,360,000.00
    Book Value
    20A2
    1,200,000.00
    1,200,000.00
    320,000.00
    320,000.00

    3,580,000.00
    6,620,000.00

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