2. Soft Oil Company has an ORI in an unproved property for which it paid $80,000. The ORI has not been impaired. Soft sells 60% of the ORI for a cash consideration of $106,000. The amount of the credit for the Gain on the sale of ORI entry will be ?
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- Southwestern Wear Inc. has the following balance sheet: The trustees costs total 281,250, and the firm has no accrued taxes or wages. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors receive if a total of 2.5 million is received from sale of the assets?Garcia Co. owns equipment that costs $150,000, with accumulated depreciation of $65,000. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: A. $90,000 cash B. $85,000 cash C. $80,000 cashSurfin Corporation sold product "S" to Red Corporation for P1,000,000 plus 12% VAT. Subsequently, Red Corporation sold the product to Lights Corporation for P1,344,000 (VAT-inclusive). How much is the VAT payable of Red Corporation?
- Eleven years ago, Lynn, Incorporated purchased a warehouse for $315,000. This year,the corporation sold the warehouse to Firm D for $80,000 cash and D’s assumption ofa $225,000 mortgage. Through date of sale, Lynn deducted $92,300 straight-linedepreciation on the warehouse.Requiredc. How would your answers change if Lynn was a noncorporate business?Kwell Co. owes Kuto Bank P4,000,000 plus accrued interest of P360,000. The unamortized discounton the loan is P80,000. The debt is a 10-year, 12% loan. During 20x1, Kwell’s business deteriorateddue to loss of demand for its services. On December 31, 20x1, Kuto Bank agrees to accept oldequipment and cancel the entire debt. The equipment has a cost of P12,000,000, accumulateddepreciation of P8,800,000 and fair value of P3,600,000. How much is the gain (loss) on theextinguishment of the debt?Eleven years ago, Lynn, Incorporated purchased a warehouse for $315,000. This year,the corporation sold the warehouse to Firm D for $80,000 cash and D’s assumption ofa $225,000 mortgage. Through date of sale, Lynn deducted $92,300 straight-linedepreciation on the warehouse.Required:b. What is the character of this gain?c. How would your answers change if Lynn was a noncorporate business?
- ABC Company sells to XYZ, 5 used factory equipment, each of which was acquired at P20,000, 3 years ago. The carrying value of each equipment is P5,000. The selling price of each equipment is P3,000. Upon executing the sale, ABC received P5,000 down payment and a 10% 1 year promissory note for the balance. Compute the amount of loss ABC has suffered from the sale of the equipment.In return for equipment with a fair worth of 150,000, Travis Co. chose to form a corporation and issue 5000 shares of ordinary stocks with a par value of P20 that trade at P25 on the stock market. Similar equipment was purchased by Travis Co. for $60,000 and is used similarly. The equipment has no salvage value and is depreciated over a 5-year period using the straight-line approach. How much does the first year's depreciation cost?1. On December 31, 2018, the company posted an eding capital of 30 million. the following yer, the copany realized a net income after tax of 70 milion, but the owner withdrew 20 million frm the capital for persnal investments. by the end of 2019, how much is the ending capital of the company? 2. The following information can be found in Sanduc Merchandising Corporation's financial statement in 2019: cost of sales of 2,450,000; accumulated depreciation of 75,000; operating expenses of 1,050,000; corporate income tax of 32% sales of 4,800,000; 3-year bank loan of 1,000,000 that pays an interest rate of 8.5 per year. determine the net profit before tax of Sanduco
- The fair value of Wallis, Inc.’s depreciable assets exceeds their book value by $50 million. The assets have an average remaining useful life of 15 years and are being depreciated by the straight-line method. Park Industries buys 30% of Wallis’s common shares. When Park adjusts its investment revenue and the investment by the equity method, how will the situation described affect those two accounts?BBB,Inc sells its unprofitable division A at a gain of $20,000. Before the sale, division A had a net loss of $50,000 for the period. Which of the following is true? The$20,000. Before the sale, Division U had a net loss of $50,000 for the period. Which of the following is true O The $20,000 gain on sale will be disclosed in the notes to the financial statements only, with the 550 operations. The $50,000 net loss will be a part of continuing operations and the $20,000 gain on sale will be a part of discontinued operations. The $20,000 gain on sale will be a part of continuing operations and the $50,000 net loss wil be a part of discontinued operations. Both the net loss of $50,000 as well as the gain on sale of $20,000 will be included as a part of discontinued operations.EEE has been very successful in operating his business for the last five years. His financial statements showed total assets of P380,000 and liabilities of P50,000. He invited FFF to join him by investing an amount enough to give him a 30% interest in the firm. Profit and loss agreement provides 80:20 to EEE and FFF, respectively. Before the formation, the parties agreed to make the following adjustments in the books of EEE:· Allowance for doubtful accounts amounting to P10,000 be established.· The merchandise should be adjusted to include goods out on consignment amounting to P25,000.· Accrued utilities of P2,500 be recognized.How much is the amount to be invested by FFF?