ABC Company depreciates asset C by the straight-line method which was acquired in 2019 with residual value of P 14,000. Its cost and accumulated depreciation as of December 31, 2021 were P 70,000 and P 33,600, respectively. ABC Company takes a full year's depreciation expense in the year of an asset's acquisition and no depreciation expense in the year of an asset's disposition. The estimated useful life of asset C is 5 years. On June 30, 2021, ABC Company sold asset C for P 28,000. How much gain (loss) should Vios record in 2022 on the disposal of asset C?

Q: Dawn Company purchased a machine on January 1, 2018 for P3,000,000. At the date of acquisition, the…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: At the beginning of the year 2019. Itlog Company has an investment property acquired at a cost of $…

A: At beginning of year 2019, Itlog company acquired property at cost = $2000000 Useful life of…

Q: Chaz Corporation has taxable income in 2020 of $368,000 for purposes of computing the §179 expense…

A: Taxable Income:- When an individual earns income from the resources available, then it has to pay…

Q: On December 31, 2021, Purple Company sold a building, receiving as a consideration a P4,000,000…

A: Present value of 1 for three period at 12% = 0.711780   Hence present value of P4,000,000 =…

Q: On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for…

A: Loss on sale of equipment = Sale value - Net book value of equipment

Q: On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for…

A: 1. Date Account Titles and Explanation Debit Credit July 15, 2021 Cash $750,000…

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years…

A: The fair value of a financial asset is established at the reclassification date when a company…

Q: Chaz Corporation has taxable income in 2020 of $396,000 for purposes of computing the §179 expense…

A: Depreciation expense can be defined as a non-cash expenditure which represents the normal wear &…

Q: What is the maximum total depreciation deduction that Chaz may deduct in 2021? (Use MACRS Table 1,…

A: Depreciation is the reduction of the fair value of the asset over a period of time. It is the…

Q: 00:35:23 Remaining Multiple Choice On July 1, 2019, an entity purchased the rights to a mine for…

A: Depreciation is the wear and tear of the asset. It occurs due to: Passage of time Usage…

Q: An entity purchased equipment on January 1, 2019 for 5,000,000. The equipment had a useful life of 5…

A: The Numerical has covered the concept of Depreciation Accounting.  Double declining balance method:…

Q: On March 1, 2021, Bharat Corporation purchased an equipment for P500,000 with an estimated residual…

A: Barat Corporation's Lease Details for 2021   Cost of Equipment= P500,000 Monthly lease rent= P18,000…

Q: On January 3, 2018, Honest company acquired an item of property, plant and equipment at a cost of…

A:

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful lite of 10 years…

A: VALUE OF PROPERTY IMMEDIATELY BEFORE THE CLASSIFICATION AS HELD FOR SALE AS ON 31ST DEC, 2022…

Q: Ayala Corporation purchased equipment for P5,000,000 on January 1, 2020 with a useful life of 10…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years…

A: Impairment loss is the decrease in the carrying amount of asset to its recoverable amount.…

Q: A building was acquired on January 1, 2019 at an original cost of P16,000,000, with zero residual…

A: Rate of depreciation under double-declining balance method = (1/Useful life) * 100 * 2 Rate of…

Q: Cutter Enterprises purchased equipment for $72,000 on January 1, 2021. The equipment is expected to…

A: "Since you have asked multiple questions, we will solve one question for you. If you want any…

Q: On April 23, 2021, Charm Company classified a non-current asset held for sale in accordance with…

A: IFRS 5 - Non-current Asset Held for Sale and Discontinued Operations As per IFRS 5, non-current…

Q: Ventura Corporation purchased machinery on January 1, 2019 for ₱840,000. The company used the…

A: It has to be treated prospective. There is no cumulative effect. Therefore option d ₱0 is correct

Q: Gia Corporation purchased machinery on January 1, 2019 for ₱840,000. The company used the…

A: 1. It has to be handled prospectively, therefore there is no cumulative effect on tax. Answer is…

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years…

A: We know that Impairment loss can be calculated as follow = Carrying value - Recoverable amount.…

Q: On January 1, 2019, Sali Inc. purchased land with a cost of $400,000. The Company uses a revaluation…

A: Revaluation of Asset: To account for any substantial changes in their fair market value, a company's…

Q: An entity purchased equipment on January 1, 2020 for P8,000,000. The equipment had a useful life of…

A: Depreciation expense- Double-declining = 2 x Cost of the asset x Depreciation rate Depreciation rate…

Q: 2021

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: Harris Co. takes a full year's depreciation expense in the year of an asset's acquisition and no…

A:

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years…

A: Introduction Decrease in value of assets due to obsolete and old condition this decrease in asset…

Q: 19, Ivanhoe Corporation acquired equipment at a cost of $858000. Ivanhoe adopted the…

A: Solution: Sum of years digits = 8+7+6+5+4+3+2+1 = 36 Accumulated Depreciation for 2019, 2020, 2021 =…

Q: On January 1,2015, ABC Corporation acquired a building at a cost of P 22,000,000. The building has…

A: Annual depreciation = (Cost of the assets - residual value)/ life of the assets = (P22,000,000 -…

Q: On January 1,2015, ABC Corporation acquired a building at a cost of P 22,000,000. The building has…

A: Annual depreciation = (Cost of the assets - residual value)/ life of the assets = (P22,000,000 -…

Q: Falcetto Company acquired equipment on January 1, 2019, for $12,000. Falcetto elects to value this…

A: a. Prepare the journal entries for 2019 related to the equipment.

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years…

A: Assets held for sale are recorded at lower of carring amount in books and fair value less cost of…

Q: in November 4, 2019, Blue Company acquired an asset (27.5-year residential real property) for…

A:

Q: On January 1, 2019, Vaughn Inc. purchased equipment for $ 44900. The company is depreciating the…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful lite of 10 years…

A: Recoverable Value of the Equipment on December 31, 2022 =  Fair Value - Cost of disposal…

Q: On 1, 2020, Midland Company purchased a machine for P1,400,000. This machine has - year useful…

A: Income tax:  It is the amount a person is liable to pay on the earned amount in an accounting year.…

Q: Manara Corporation acquired Sama Products on January 1, 2019 for $4,000,000, and recorded goodwill…

A: Intangible assets include: Goodwill  Patent Copyright Trademark

Q: Ventura Corporation purchased machinery on January 1, 2019 for P630,000. The company used the…

A: Net book value at the end of 2020 = Cost of the assets - accumulated depreciation under sum of digit…

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years…

A: Recoverable value = Fair value less cost of disposal for December 2022 = P3300,000 - P100,000 =…

Q: At the beginning of 2019, Robotics Inc. acquired a manufacturing facility for $13.9 million. $10.9…

A: Given that, Cost of the building = $109,00,000 Residual value = $2900000 Useful life of asset = 25…

Q: An entity purchased equipment on January 1, 2020 for P5,000,000.  The equipment had a useful life of…

A: Straight Line Depreciation=Cost-Residual valueUseful lifeDouble declining Depreciation=Straight Line…

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful lite of 10 years…

A: Recognized gain/loss = P3,800,000 - P200,000 = P3,600,000

Q: impairment loss reported in profit or loss for the year 2026?

A: Depreciation per year: = (Cost - salvage)/Useful life  = (P100000 - P10000)/10  = P9000 per year…

Q: Robertson Company had purchased an equipment on January 1, 2019 for P 4,800,000. The entity used the…

A: It is pertinent to note that a change in accounting estimate needs to be accounted for…

Q: On July 1, 2019, AXS COMPANY acquired an asset for P1,312,500. The asset is being depreciated over a…

A: solution: given: purchase price (cost )     =P1312500 useful life           =6 years residual value…

Q: The Salient company uses the revaluation model for its building. It acquired a building on January…

A: 1. 2018, and 2019, depreciation expenses = (450,000 - 50,000)/ 25 = $16,000 per year Accumulated…

Q: The R Company acquired an equipment on January 1, 2016 at a cost of P900,000, depreciating it over 8…

A: Working Note :- Particulars Amount P Amount P Cost of equipment Jan 1 ,…

Q: Sweet Company purchased equipment on January 1, 2018, for S28,000. Suppose Sweet Company sold the…

A: recording of journal entry for depreciation are as follows.

Q: ,470,000 Computer equipment February 10   455,000 Office building April 2   570,000 Total   $…

A: Depreciation:- Depreciation referred as decreasing in the value of an asset on a regular basis until…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.