Answer To: Assume Southern Copper Corporation (SCCO) acquired mining equipment for $100,000 cashon January 1,...
Khushboo answered on Nov 05 2022
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...