Assume Southern Copper Corporation (SCCO) acquired mining equipment for $100,000 cashon January 1, 2018. The equipment had an expected useful life of four years and zero salvagevalue. SCCO...

1 answer below »
Asignment


Assume Southern Copper Corporation (SCCO) acquired mining equipment for $100,000 cash on January 1, 2018. The equipment had an expected useful life of four years and zero salvage value. SCCO calculates depreciation using the straight-line method over the remaining expected useful life in all cases. On December 31, 2018, after recognizing depreciation for the year, SCCO Be 5 learns that new equipment now offered on the market makes the purchased equipment lpraent on hari 31, 2018 redecting this partially obsolete. The market valu ced AAT °C 10NTUS0I9Y DIUZ099 } 4S — nbov ‘'T onrsmb gh in Ge IR Ni 3107 ‘T Arenue[ uo ysed 103 yuowrdmbs aya Jo U NYE a USUIS))S SUIOJUT PUR 1939S ddUereq ay} uo SJUaAD SUIMOTIOF 33 Maurely [ednATeue ay) SuIs() “(SUI0dUT 10 19372 A 3)RITPUI ‘I2)deYD AU UI PISSNOSIP 10 UI POZIUS0931 SINTRA JX Ieur Jrej ul segue PIM) Sasso] juauIredwr pue uoneradap 10] pajsnipe sane 13YITeur IIe] JUILMD UIs yuauwrdmba a1 103 SIUN0J0E ODDS Jey) awmssy °q 1207 ‘T Axenuef uo Juswdmba a JO des °9 0207 X03 uonerdaxda(d Ss 6102 10] uoneraxdaq ¥ 8107 10J soy yuauraredwy *¢ 8107 X03 uonernaxda(q *z 8102 ‘1 Arenue( uo ysed 103 Juswrdmba apy Jo uonismboy ‘JUaWIAle)S 3WIOOUT pue 133 PUE 393s 3oueeq ayy uo syuana 3umorioy a jo $123339 a 3jedrpur ‘aad pur eyo 3 © 31 UT PasSnISIp Yiom ATR Poiomautel reonkreue au Bursn ‘sassof 3uaurredur pue uonesidap ! I ner 10] RETR paisnipe 1502 [eaux RR [EIL0ISTY Buisn yuawdmba au 103 S)unodoe 02S Jey axed snp 10j aux I nssy ‘e SANIVISY ANIVAAIY A vase Q. v {Palak A sox 02021 Sururenra aul J Pee = as Bunsen 130 | q 019) JUL ‘1 Arenue[ U0 %¥ JO S100 sp 1 105 9 o sy mt 5121 1S2191U SU UO pased “TZ0T PUB ‘020T 6102 ‘7¢ 19qUISR[ UO ¥1¥i Tras [enuue axeul 0 930138 pue A[21eTpaUIWI 000°G$ Led nox ‘000°SH$ 10J ‘6T0T ‘T Srenue( 8 $ 09UIOY BJ[V "USBI UI $1502 9$d} JO T[e SINIUL IT el) Jumssy * oo: 8 urmp 0 an[eA Juasaid e ur ups ¢ ST 2)0U 3} JO NBA Juasaxd au ‘1202 0) JMIOIOINE ST STR © 3[IOWIoINE J[RISAUOD PII B SurIMoRINUERUI UT 000°0E$ JO $1500 USED 109IIP SINDUI C Sr sasoixs = = ¢9WIT) I9A0 S9SSO] puke ‘sured ‘sasuadxa Jo ute)ed JUSISIIP © UMOYS duraey 911dsap $ased ypoq ut 000%.$ 2AnR3au © 03 [ens ‘1707 ‘7 Arenue( uo s3uruies paure)al st Aum ‘Pros st Iuswdmba ap 19) 2 1207 ‘T Axenue( uo yusurdmba 93 JO 9[es 8 0202 103 sso x0 ure3 urpoy paziresun jo uonIugdoday *z Av Er Ren re YAY svAvesnivAana vA A ov on 0202 ‘T€ 1qu22d 0 PAZIUZ0291 aNUIASL 15010) | RN | 10 pezIug00a1 $0] 10 Ure3 Surp[oY PaZi[eaiun ue pue panjese 310 2 1903.1 910 6102 ‘TE JUIN UO Paz1u3021 ANU ISIIOIUI pue paAl 292. [sed 102 Sunmp aigourone au Jo aanjdeInuUeR UAUISIE)S SUIOOUT PUR 333YS aouereq o]30 OU) 21RIIPU] “Teak 1XaUl ay) 10] oNUSAQL 1591030 2 199s 9ouR[R] SU} UO 2)0U 913 JO uonenyes au} 01d dy) 2UIOIUT J3U UT PIZIU3099T so8ue 31 UO SIUSAS SUIMOT[0] 3 JO S10 30 uoneNdurod A pue ATo1eTpauIWIT 10917 S91BI 1S9IIUT J TeUL UT saguey) ‘(7 Yoe an[eA IIe] PIM Teak ord AN[eA Irej Je [BAIL 5)0U STU SaN[eA 09UI0Y BJ[V Jey} SUWNSSY. q 1707 TE I2qUId3( UO PIZIUZ0I31 aNUIAII ISIIIUL pue PIAISISI Use) °G 0207 ‘TE I2UIAI3( UO PIZIU009.1 SNUIAII ISITIUTL PUL PIAIIIL USED “Fp 610Z ‘TE J2UIIA(] UO PIZIUIZ0I9T INUIAII ISIIUL PUB PIAIIAI USED °E 6102 ‘T Axenue( uo a[Iqowroine ay) Jo ayes i en ¥ X i 8107 SurImp aIqouwroine ay) Jo aanidejnuey “f | : i : : Rab "$)aSSE [e10) ul a3ueyd ou ur 3unmsai ‘000‘0E$ SISLIIIUT AI0JUIAUT PUR ‘000‘0E$ SISLIIIDP YSe) 3 Pom (I) 0) asuodsax ap ‘ddurexs 103 “Juaurajels AUIOIUT PU. 33S ddUeR( A) UO SIUIAD SUIMOT[0] 31 JO S329133 a} edrpu] *(T Yoroaddy) 3). 1S3Ia)ul [edLI0ISIY J) pue aNfeA Juasaxd vrvrvive avy Queva vw Avena l A ~ vir Avs Am AIv@n A TITY ATAIY Aviv YAY Ase AAAv AA FUVANY ATYY ¥ SW vv ANIYVWANAYY . - . 8 Swi . *io)a 3 vty - J Five 2 ‘a : } ¥. I . ’ ‘ : / . » . ~ LiRials ‘ . a 3 X e 2 . at : : ra Avvo ANVvVwNvaAvY vasa A Vv V aa : MMA vata waa Mara Civaaag, : ~ a Alvaraasny Oaar va AVULU a Bai VV HLsaLC van as $3.0: TT a Faia . x ay i 3 Bi Yabats aie Li Yah .) 3 gene . \ 7. Cash received and interest revenue recognized on December 31, 2021 I Ir 315 2021, (& dl ) 1& ) 3, 1 1 both C d U e over h J I
Answered Same DayNov 04, 2022

Answer To: Assume Southern Copper Corporation (SCCO) acquired mining equipment for $100,000 cashon January 1,...

Khushboo answered on Nov 05 2022
50 Votes
Solution 1
a.
1. Acquisition of the equipment for cash on January 1, 2018
    Assets
    
    Liabilities
    
    Stockholder’s equity
    
    =
    
    +
    CC
    AOCI
    RE
    
    
    
    
    
    
    
    Equipment 100,000
    
    
    
    
    
    
    Cash (100,000)
    
    
    
    
    
    
2. Depreciation for 2018
    Assets
    
    Liabilities
    
    Stockholder’s equity
    
    =
    
    +
    CC
    AOCI
    RE
    
    
    
    
    
    
    
    Accumulated depreciation (25,000)
    
    
    
    
    
    Depreciation expense (25,000)
    
    
    
    
    
    
    
3. Impairment loss for 2018
    Assets
    
    Liabilities
    
    Stockholder’s equity
    
    =
    
    +
    CC
    AOCI
    RE
    
    
    
    
    
    
    
    Equipment (15,000)
    
    
    
    
    
    Impairment loss (15000)
    
    
    
    
    
    
    
4. Depreciation for 2019
    Assets
    
    Liabilities
    
    Stockholder’s equity
    
    =
    
    +
    CC
    AOCI
    RE
    
    
    
    
    
    
    
    Accumulated depreciation (20,000)
    
    
    
    
    
    Depreciation expense (20,000)
    
    
    
    
    
    
    
5. Depreciation for 2020
    Assets
    
    Liabilities
    
    Stockholder’s equity
    
    =
    
    +
    CC
    AOCI
    RE
    
    
    
    
    
    
    
    Accumulated depreciation (20,000)
    
    
    
    
    
    Depreciation expense (20,000)
    
    
    
    
    
    
    
6. Sale of the equipment on January 1, 2021
    Assets
    
    Liabilities
    
    Stockholder’s equity
    
    =
    
    +
    CC
    AOCI
    RE
    Cash 26000
    
    
    
    
    
    
    Equipment (85,000)
    
    
    
    
    
    
    Accumulated depreciation 65000
    
    
    
    
    
    Gain on sale of equipment 6000
    
    
    
    
    
    
    
b.
1. Acquisition of the equipment for cash on January 1, 2018
    Assets
    
    Liabilities
    
    Stockholder’s equity
    
    =
    
    +
    CC
    AOCI
    RE
    
    
    
    
    
    
    
    Equipment 100,000
    
    
    
    
    
    
    Cash (100,000)
    
    
    
    
    
    
2. Depreciation for 2018
    Assets
    
    Liabilities
    
    Stockholder’s equity
    
    =
    
    +
    CC
    AOCI
    RE
    
    
    
    
    
    
    
    Accumulated depreciation (25,000)
    
    
    
    
    
    Depreciation expense (25,000)
    
    
    
    
    
    
    
3. Impairment loss for 2018
    Assets
    
    Liabilities
    
    Stockholder’s...
SOLUTION.PDF

Answer To This Question Is Available To Download