8.1 Company A pay VAT by the tax deduction method, on December of year N have the situation of fixed assets as follows: (Unit: 1,000 VND). Given that all payments are made by cash in bank 2. Exchanged an older model machine for a new model. The old model had original cost of 800.000 and 440.000 in accumulated depreciation; its fair value was 400.000 (excluded VAT). Company paid 110.000 to complete the exchange which has commercial substance. The VAT rate for both machines are at 10% 3. Get 1 tangible fixed assets through long-term joint ventures with their cost: 600.000, has accumulated depreciation 200,000 (according to the books of the contribution partner). Venture Board re-evaluated it to 500.000. 4. Purchase a patent for 40.000. The legal and other fees for transfer the patent is 4.000. 5. Purchase a new machine on an installment plan with monthly payment of 23.000 in 36 months. Given that in case of paying in full, the price is 720.000( excluded 5% VAT). Company received the machine and made the first month payment. Required: Prepare the accounting entries for transactions above
8.1 Company A pay VAT by the tax deduction method, on December of year N have the situation of fixed assets as follows: (Unit: 1,000 VND). Given that all payments are made by cash in bank 2. Exchanged an older model machine for a new model. The old model had original cost of 800.000 and 440.000 in accumulated depreciation; its fair value was 400.000 (excluded VAT). Company paid 110.000 to complete the exchange which has commercial substance. The VAT rate for both machines are at 10% 3. Get 1 tangible fixed assets through long-term joint ventures with their cost: 600.000, has accumulated depreciation 200,000 (according to the books of the contribution partner). Venture Board re-evaluated it to 500.000. 4. Purchase a patent for 40.000. The legal and other fees for transfer the patent is 4.000. 5. Purchase a new machine on an installment plan with monthly payment of 23.000 in 36 months. Given that in case of paying in full, the price is 720.000( excluded 5% VAT). Company received the machine and made the first month payment. Required: Prepare the accounting entries for transactions above
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 12E: Temporary and Permanent Differences Lin has just completed its first year of operations and has a...
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