Accumulated

Category Cost of Asset Depreciation

Land P13,000,000

Buildings 12,000,000 P2,654,000

Machinery and Equipment 7,750,000 1,962,000

Automobiles and Trucks 13,200,000 8,620,000

Leasehold Improvements 2,210,000 1,105,000

Land Improvements - -

A
Building 12,800,000.00
Land 3,200,000.00
Cash 16,000,000.00

B
Land Improvements 1,920,000.00
Cash 1,920,000.00

C
NO JOURNAL ENTRY

D
Machinery and Equipment 290,000.00
Cash 290,000.00

E
Automobile 650,000.00
Cash 650,000.00

F
Cash 1,150,000.00
Accumulated depreciation 1,825,200.00
Gain on Sale 2,400,000.00
Truck 575,200.00
 Accumulated Depreciation 140,250.00
Loss on Disposal 29,750.00
Machine 170,000.00

Audited Balances

Land
Land Beg bal. 13,000,000.00
Acquisition on January 6 3,200,000.00
16,200,000.00

Building
Straight line rate 4%
Double declining rate 0.06

Carrying amount x DDB rate

Building, Beg balance 12,000,000.00
Accumulated depreciation (2,654,000.00)
Carrying amount - old 9,346,000.00
Acquisition 12,800,000.00
Carrying amount 22,146,000.00
DDB rate 6.00%
Depreciation (1,328,760.00)
Final carrying amount 20,817,240.00

Machinery and Equipment

Machinery and Equipment, Old 7,750,000.00
Less: residual value -
EUL 10 years
Annual Depreciation 775,000.00

Machinery and Equipment, New 290000

Less: residual value -
EUL 10 years
Annual Depreciation 29,000.00
Period 6/12
Depreciation Expense 14,500.00
 789,500.00

Cost 8,040,000.00
Less: Machine Sold (170,000.00)
Total 7,870,000.00
Accumulated Depreciation (2,751,500.00)
Carrying Amount 5,118,500.00

Accumulated depreciation machinery and equipment

Beginning balance 1,962,000.00
Depreciation Expense 789,500.00
Accumulated Depreciation 2,751,500.00
 Depreciation
Method

150% Declining bal

Straight-Line

SYD

Straight-Line

Straight-Line
Accumulated Depreciation, Beginning 2,654,000.00
Depreciation Expense 1,328,760.00
Accumulated depreciation for the year ended 3,982,760.00
Useful Life

25 years

10 years

5 years

8 years

12 years
Acquisition cost 10,400,000.00
Exploration cost
Development cost
Restoration cost -
Capitalizable cost 10,400,000.00
Less: Residual value (800,000.00)
Depletable amount 9,600,000.00
Est. number of units to be extracted 8,000,000.00
Depletion rate per unit 1.20
Actual units extracted 2018 800,000.00
Accumulated depletion 2018 960,000.00

Cost 800,000.00
Residual value -
Depreciable amount 800,000.00
Est. number of units to be extracted 8,000,000.00
Depreciation rate per unit 0.10
Actual units extracted - 2018 800,000.00
Depreciation for building - 2018 80,000.00
20% allocation for OpEx 16,000.00
80% allocation for production cost 64,000.00

Cost 1,600,000.00
Resdiual value (320,000.00)
Depreciable amount 1,280,000.00
Estimated Useful Life 4.00
Annual depreciation of Machine 320,000.00

1. Depletion for 2018 ₱ 960,000.00

2. Inventoriable depreciation for 2018 ₱ 384,000.00

3. Inventory as of December31, 2018

Beginning Inventory 2018 800,000.00 tons
Less: Tons sold 640,000.00
160,000.00
Unit selling price per ton 4.40
Inventory as of December 31, 2018 704,000.00
4. Cost of Sales for the year ended 2018
 Historical Cost Fair Value/Replacement CAppreciation
Building 3,000,000.00 2,400,000.00 (600,000.00)
Accumulated Depreciation (1,000,000.00) (800,000.00) 200,000.00
CA/SV/RS 2,000,000.00 1,600,000.00 (400,000.00)

Historical Cost Fair Value/Replacement CAppreciation

Building 1,200,000.00 1,350,000.00 150,000.00
Accumulated Depreciation (400,000.00) (450,000.00) (50,000.00)
CA/SV/RS 800,000.00 900,000.00 100,000.00

RS Building (400,000.00)
RS Equipment 100,000.00
Revaluation Shortage (300,000.00)
5. Revaluation surplus as of December 31, 2017

Fair Value/Replacement
Historical Cost Cost Appreciation
Building 2,400,000.00 2,625,000.00 225,000.00
Accumulated Depreciation (800,000.00) (875,000.00) (75,000.00)
CA/SV/RS 1,600,000.00 1,750,000.00 150,000.00