Question

Question 2 At January 1, 2018, Oriole Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings $67,700,000 Accumulated depreciation equipment 56,500,000 Buildings 94,700,000 Equipment 157,500,000 21,000,000 Land The company uses straight line depreciation for buildings and equipment, its year and is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year useful and no residual value; the equipment is estimated to have a 10-year useful life and no residual value During 2018, the following selected transactions occurred: Apr. Purchased land for $4,010,000. Paid $1,050,000 cash and issued a three year, mortore payable for the balance. Interest on the mortgage is payable annually each April May 1 Sold equipment for $280,000 cash. The equipment cost $2,553,600 when originally purchased on January 1, 2010, June 1 Sold and for $3,520,000. Received 917,000 cash and accepted a three year, note for the balance. The land cost $1,500,000 when purchased on June 1, 2012. Interest on the note is due annually each lune 1 July 1 Purchased equipment for $2,100,000 cash Dec 31 Retired equipment that cost $900,000 when purchased on January 1, 2009. No proceeds were received 31 Tested and for impairment and found that its recoverable value was $21,000,000

Answer 1

- A E S E E Merge & Center - Conditional Format Cell Insert Paste H2- BTU E = Page Layout $ % , 09 Master - Microsoft Excel Formulas Data Review View = = = Home Insert * Cut Ea Copy Format Painter Clipboard 012 - Paste Wrap Text Merge & Center - Calibri - 11 - AA BI UBA Font foc General $ - % , Number 8:09 Insert Delete Format Conditional Format Cell Formatting as Table Styles Styles 2 Clear Sort & Filter Editing Find & Select Alignment Cells A C D E F G H I J K L M N P Q R S 1 Calculation of Impairment Loss carrying amount -recoverable amount carrying amoun 21,000,000+4,010,000-1,500,000 23,510,000 Impairment loss Impairment loss 23,510,000-21,000,000 2,510,000 2 depreciation expense for the year Depreciation on the equipment sold on MAY 1 (for 5 months) x 12 13 14 2553600 10 85120 15 Depreciation on equipment purchased on July 1 (for 6 months) 16 2,100,000 X 17 12 105000 18 19 depreciation on remaining equipments 20 21 22 23 Opening bal-sales on may 1 157500000-2553600 154,946,400 154,946,400 10 15,494,640 depreciation expense for the year depreciation expense for the year Process Seurities Act 1933 85120+105000+15494640 15,684,760 process II ABC Costing Accounting Theory Break Evenpoint Sheet1 Ready OU 80% A llan U+ 7:19 PM

Master Microsoft Excel Review View CU90E = Home Insert Page Layout Formulas Data Cut Calibri - 11 - AA Paste Format Painter Clipboard Font Σ AutoSum * Α. - General ta Copy Wrap Text Merge & Center - S 8.99 - % Number Conditional Format Formatting " as Table Cell Styles Insert Delete Format Cells 2 Clear Sort & Filter Editing Find & Select Alignment Styles 012 - D E F G H I J K L M N O P Q R S T US 31 32 33 3 Value of land in Balance sheet 21,000,000 Value of Accumulated depreciation on equipme- 35 Opening bal + depreciation expense for the year 56,500,000 15,684,760 72,184,760 Value of Accumulated depreciation on equipment BASERAS 50 N Process Seurities Act 1933 process 11 ABC Costing Accounting Theory Break Evenpoint Sheet1 1 WE Ready H0 80% @ 01 7:20 PM 05/02/2020 -