1. HULK Corporation declared on December 1, 2021 its 10 brand new fleet of cars costing ₱500,000 each as property dividends to be distributed on February 1, 2022 to its ten shareholders. The following fair value less cost to distribute of the cars was determined to be: December 1, 2021 - ₱4,800,000; December 31, 2021 - ₱4,500,000; February 1, 2022 -₱4,000,000. What is the carrying amount of the asset held for distribution on December 31, 2021? * ₱ 4,800,000 ₱ 4,500,000 ₱ 5,000,000 ₱ 4,000,000

1. HULK Corporation declared on December 1, 2021 its 10 brand new fleet of cars costing ₱500,000 each as property dividends to be distributed on February 1, 2022 to its ten shareholders. The following fair value less cost to distribute of the cars was determined to be: December 1, 2021 - ₱4,800,000; December 31, 2021 - ₱4,500,000; February 1, 2022 -₱4,000,000. What is the carrying amount of the asset held for distribution on December 31, 2021? * ₱ 4,800,000 ₱ 4,500,000 ₱ 5,000,000 ₱ 4,000,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 44P

See similar textbooks

Similar questions

LO.2, 3, 9 On June 5, 2018, Javier Sanchez purchased and placed in service a new 7-year class asset costing 560,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). During 2018, his business generated a net income of 945,780 before any 179 immediate expense election. a. Rather than using bonus depreciation, Javier would like to use 179 to expense 200,000 of this asset and then use regular MACRS to cost recover the remaining cost. Given this information, determine the cost recovery deductions that Javier can claim with respect to this asset in 2018 and 2019. b. Complete Javiers Form 4562 (page 1) for 2018. His Social Security number is 123-45-6789.
HULK Corporation declared on December 1, 2021 its 10 brand new fleet of cars costing ₱500,000 each as property dividends to be distributed on February 1, 2022 to its ten shareholders. The following fair value less cost to distribute of the cars was determined to be: December 1, 2021 - ₱4,800,000; December 31, 2021 - ₱4,500,000; February 1, 2022 -₱4,000,000. What is the carrying amount of the asset held for distribution on December 31, 2021?
HULK Corporation declared on December 1, 2021 its 10 brand new fleet of cars costing ₱500,000 each as property dividends to be distributed on February 1, 2022 to its ten shareholders. The following fair value less cost to distribute of the cars was determined to be: December 1, 2021 - ₱4,800,000; December 31, 2021 - ₱4,500,000; February 1, 2022 -₱4,000,000. What is the loss on distribution of property dividend to be recognized on February 1, 2022? ₱ 0 ₱ 500,000 ₱ 800,000 ₱ 200,000
ABC Company declared on December 1, 2021 its 10 brand new fleet of cars costing P500,000 each as property dividends to be distributed on February 1, 2022 to its ten shareholders. The following fair value less cost to distribute of the cars was determined to be: December 1, 2021 ....................4,800,000 December 31, 2021 ....................4,500,000 February 1, 2022 ....................4,000,000 What is the net decrease of retained earnings in 2021? What is the carrying amount of the asset held for distribution to be presented in the balance sheet on December 31, 2021? What is the loss on distribution of property dividend to be recognized on February 1, 2022?
ABC Company declared on December 1, 2021 its 10 brand new fleet of cars costing P500,000 each as property dividends to be distributed on February 1, 2022 to its ten shareholders. The following fair value less cost to distribute of the cars was determined to be: December 1, 2021....................4,800,000 December 31, 2021....................4,000,000 February 1, 2022....................4,000,000 What is the net decrease of retained earnings in 2021?
On January 1, 2021, Ameen Company purchased major pieces of manufacturing equipment for a total of $54 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2023, the book value of the equipment was $48 million and its tax basis was $38 million. At December 31, 2024, the book value of the equipment was $46 million and its tax basis was $31 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2024 was $35 million. Required: Prepare the appropriate journal entry to record Ameen’s 2024 income taxes. Assume an income tax rate of 25%. What is Ameen’s 2024 net income?
On December 30, 2021, CHERRY Company paid P2,000,000 for the land. On December 31, 2021, the current value of the land was P2,200,000. In January 2022, the land was sold for P2,250,000. Ignoring income tax, by what amount should shareholders’ equity be increased for 2021 and 2022 in current value financial statements? A. 2021 - ₱ 0; 2022 - ₱ 50,000 B. 2021 - ₱ 200,000; 2022 - ₱ 0 C. 2021 - ₱ 0; 2022 - ₱ 250,000 D. 2021 - ₱ 200,000; 2022 - ₱ 50,000
On November 1, 2022, Nelson Corp. purchased land and a building for a combined cost of $2,000,000. Nelson paid $500,000 in cash and financed the remaining $1,500,000 by issuing a three (3) year, 9% installment note. The note will be paid back in three equal payments beginning on November 1, 2023. The Company has determined that the land and building have fair market values of $440,000 and $1,760,000, respectively. Their combined fair market value is $2,200,000. Part A: Prepare the journal entry Nelson should make to record the acquisition of these two assets. Part B: Calculate the amount of each installment payment on the note and complete the amortization below. Round the installment payment amount to the nearest whole dollar. Date Cash Paid Interest Expense Reduction in CV Carrying Value (CV) 11/1/22 11/1/23 11/1/24 11/1/25 Total
On January 1, 2021, Super Balut Co. establishes a branch for an initial cash investment of P10,000,000. The subsequent transactions are as follows: a. On January 3, 2021, the home office acquires land and building to be used by the branch for a total cost of P30,000,000. The branch records the assets in its books. The fair value of the land is P11,000,000, while the fair value of the building is P22,000,000. The building has an estimated useful life of 20 years and no residual value. The company uses the straight-line method of depreciation. b. On February 14, 2021, the home office transfers inventory worth P20,000,000 to the branch. The home office pays freight of P500,000. c. On March 1, 2021, the home office transfers additional inventory worth P5,000,000 to the branch. This time the branch pays the freight of P100,000. d. On March 31, 2021, the branch acquires equipment for P900,000 cash. The equipment will be carried in the home office’s books. The equipment has a useful life of…
8) On January 1, 2019, Seabreeze Construction Company owned 4 dump trucks, 2 excavators and other construction machinery with a total value of $950,000. During 2019, Seabreeze Construction bought two new trucks paying a total of $120,000. On December 31, 2019, the market value of all the firm's trucks and construction machinery was $1,020,000. a)What was Seabreeze’s gross investment in 2019? b)What was the amount of depreciation in 2019? c)What was the net investment in 2019?
7 ISKOLAR started constructing a building to be used for producing its goods in January 2021. ISKOLAR incurred interest of P100,000 from its borrowings to finance the construction. In 2021, the Company also earned interest income of P20,000 and dividend income of P30,000 from its temporary placement of the proceeds from the specific borrowing. According to PAS23, how much borrowing cost should be capitalized by ISKOLAR in 2021?
You are provided the following transactions which occurred during the tax year which 31 December 2022 for Serowe Ltd. The company disposed some of its Heavy Plant and Machinery that it had bought on 30 November 2020 for P1,200,000. The company received P350,000. Serowe Ltd bought new Plant and Machinery to replace the disposed ones for P3,200,000. Assume that the company elects to apply rollover relief, calculate the capital allowances on the new plant and machinery for the current tax year.