A fixed asset with a cost of $25,974 and accumulated depreciation of $23,377 is traded for a similar asset priced at $40,828 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,683, the cost basis of the new asset is Select the correct answer. $43,425 $38,742 $40,828 $36,145

Q: On December 31 , 2010, Scotch Company decided and classified a group of its assets as held for sale…

A: According to International accounting standard-36 (impairment of assets), it states that the…

Q: Momo Company has a single investment property which had originally cost P2,320,000 on January 1,…

A: Valuation of Investment Assets According to PAS 40 the valuation of the investment assets mainly…

Q: A non-current asset whose cost is $15,000 and depreciation is $10,000 is given in part exchange for…

A: We have the following information: Cost : $15,000 Depreciation: $10,000 New Asset Cost: $20,500…

Q: On Jan. 1, 2022, ABC Co. sold a machinery to XYZ Co. for P1,900,000. Because of the entity's…

A: The lease liability is a sum of all discounted future lease payments. In this case, only lease…

Q: Madison Company acquired a depreciable asset at the beginning of Year 1 at a cost of $12 million and…

A: IFRS: These are the accounting standards suggested by the international accounting standard board…

Q: Majestic LLC purchased a factory for lump-sum of RO800,000 paid via bank. The fair value of each of…

A: Asset Fair Market value % of total x  lump-sum paid Amount allocated Land 85000…

Q: Chili's, acquired Thallicious for $32,170,000. The fair value of all Thailicioustangible and…

A: Goodwill is the excess of consideration paid over the fair values of net assets of the acquiring…

Q: The Cheer Company accounts for noncurrent assets using the cost model. On July 20, 2020, Cheer…

A:

Q: ARLENE Company accounts for noncurrent assets using the cost model. On October 30,2010, Arlene…

A: Loss on disposal: It implies to the loss incurred by the business from the sale of it's asset. It is…

Q: The acquisition of a new machine with a purchase price of $80,545, transportation costs of $9,221,…

A: Asset is the resource owned by an entity which are held for generating future revenues.

Q: acquisition date, the acquirer could only determine a provisional fair value for the Plant. On March…

A: Cash 50000 Furniture & fittings  20000 Accounts receivable  5000 Plant 131000…

Q: As per independent appraiser's report, BBB's assets have fair market value of P1,653,600 for current…

A: Consolidation:    A process where the assets of two business entities get aggregated by merger and…

Q: Positivity Enterprises accounted for noncurrent assets using the revaluation model. On September 1,…

A: As per IFRS 5 Non current assets held for sale and discontinued operation The revaluation of asset…

Q: An entity purchased equipment for P5,000,000 on January 1, 2020 with a useful life of 10 years and…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: Short Corporation acquired Hathaway, Inc., for $32,620,000. The fair value of all Hathaway's…

A: In 2001, According to the Financial Accounting Standards Board (FASB) declared in Statement 142,…

Q: A fixed asset with a cost of $28,202 and accumulated depreciation of $25,382 is traded for a similar…

A: The cost basis of the new asset is the cost of assets for tax purposes It can be calculated in the…

Q: Assume El Dorado Inc. buys a competitor’s assets for $900,000. Of the $900,000 acquisition price,…

A: As per section 197 of intangible assets, the amortization on intangible assets should be applied…

Q: cost of sao,000 and on which there is accumulated depreciation of s55,000 (nduding deprediion for…

A: Accumulated Depreciation: It is depreciation expenses that get cumulative till the end of the life…

Q: A fixed asset with a cost of $27,355 and accumulated depreciation of $24,619.50 is sold for…

A: Given that, Cost of the fixed asset = $27335 Accumulated  depreciation = $24619.50 Sale value of…

Q: Majestic LLC purchased a factory for lump-sum of RO800,000 paid via bank. The fair value of each of…

A: Asset Fair Market value % of total x  lump-sum paid Amount allocated Land 85000…

Q: ompany and Albert Company agreed to exchange tractor trailers. Information relating to these assets…

A: The asset is considered as something that an investor buys with an intention of making income from…

Q: On December 31, 20x1, an entity classified a building with an original cost of P20,000,000, carrying…

A: SOLUTION NOTE = IF THE COMPANY ADOPTS THE COST MODEL OF MEASURING PROPERTY,PLANT & EQUIPMENT…

Q: A fixed asset with a cost of $54,589.00 and accumulated depreciation of $46,400.65 is traded for a…

A: The correct option is $2,248.35.

Q: 1. Coral Company accounts for noncurrent assets using the cost model. On July 31, 2011, Coral…

A: Noncurrent assets: Noncurrent assets are the assets of the long-term investment made by the company…

Q: The original cost of the properties was P9,000,000 each when they were  acquired on January 1, 2015.…

A: The depreciation on investment property is recognized at the fair value over the remaining useful…

Q: x8, Pares Company classified its property interest under an operating lease from Allan Company, the…

A: Investment Properties are properties purchased to generate returns from it either in the form of…

Q: NATO Company accounted for noncurrent assets using the revaluation model. On July 1, 2021, the…

A: The equipment is measured at the fair value as on the date after deduction of costs if any.

Q: On January 1, 20Y3, The Simmons Group, Inc., purchased the assets of NWS Insurance Co. for…

A: Book value of the goodwill on December 31, 20Y9 = Goodwill premium on January 1, 20Y3

Q: (Fair Value Estimate) Killroy Company owns a trade name that was purchased in an acquisition of…

A:

Q: At December 31, Year 5, Aaron Co. had the following property, plant, and equipment: Asset Fair…

A: Calculate carrying value of assets:

Q: investment property is fair value model at the end of each Paradise Company's accounting polie of…

A: Cost of Investment property include: Purchase price Transfer taxes Professional fees

Q: he following pertains to Connie Corp's biological assets: Fair value based on unobservable inputs…

A: Biological Assets- Biological assets are assets that are alive for the purpose of agriculture and…

Q: corded at fair value, except the following items: Fair Value $1,400,000 p. On 1 July 2019, the plant…

A: Given: A consolidated financial statement will record the net identifiable assets of the subsidiary…

Q: Assume Sambazon.come sold an acai processing machine for $172,000 cash. If accumulated depreciation…

A: Sale price = $172,000 Accumulated depreciation = $58,311 Gain = $6,721

Q: NATO Company accounted for noncurrent assets using the revaluation model. On July 1, 2021, the…

A: As IFRS 5 assets held for sale shall be valued at lower of carrying amount or fair value less cost…

Q: On April 30, 2019, Min

A:

Q: Carmela Company acquired a financial instrument for P4,000,000 on March 31, 2020. The financial…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: On June 30, 2021, UAE Company, sold an investment in other comprehensive income for P 2,400,000 This…

A: As per IAS 9, On derecognition of a financial asset, the fair value gain accumulated in the other…

Q: Abba Company accounted for noncurrent assets using the revakuation model. On June 30,2021, the…

A: Revaluation of Asset: The term "revaluation of assets" refers to a change in the market value of…

Q: 7. Positivity Enterprises accounted for noncurrent assets using the revaluation model. On September…

A: As per IFRS 5 Non current assets held for sale,  If an asset is measured as per revaluation model…

Q: Goodwill Impairment On January 1, 20Y3, The Simmons Group, Inc., purchased the assets of NWS…

A: Impairment of Goodwill: The term 'Impairment' simply means deterioration in the value of the…

Q: A non-current asset has a carrying amount of GHS 20,000. It could be sold for GHS 18,500 with…

A: IAS 36 (Impairment of Assets) is the international accounting standard which states that the…

Q: 1. Coral Company accounts for noncurrent assets using the cost model. On July 31, 2011, Coral…

A: Asset is defined as any resource or item that assists in attracting income to the owner. Each asset…

Q: NATO Company accounted for noncurrent assets using the revaluation model. On July 1, 2021, the…

A: Introduction Impaired loss=Carrying amount-Fair value

Q: The Company provided the following data: Value of biological asset at acquisition cost on 12/31/19,…

A: The living assets such as trees and animals etc. are known as the biological assets.

Q: MNO Ltd adopts fair value for subsequent measurement of its intangible assets. An intangible with an…

A: As per IAS 38  intangible asset is an asset that doesn't have a physical existence and It is…

Q: A fixed asset with a cost of $30,192 and accumulated depreciation of $27,172.80 is sold for…

A: Fixed asset cost = $ 30,192 Accumulated depreciation = $ 27172.80 Sale amount = $ 5132.64

Q: On december 31 2021, an equipment was classified as held for sale. Its fair value less cost to sell…

A: Held for sale assets are those assets that the company wants to dispose of by selling the asset.…

Q: On April 30, 2020, Mindful Company classifies a property in Southern Tagalog as held for sale. The…

A: Solution Concept The asset is impaired when Carrying value > recoverable amount Recoverable…

Q: A fixed asset with a cost of $28,000 and accumulated depreciation of $25,200 is sold for $4,760.…

A: Net Book value of the fixed assets = Cost - accumulated depreciation  = $28,000 - $25,200 = $2,800