AcCain & Lejune, LLP donated equipment to FPPals. The equipment had a book value of $8.000 and fair value of $11000. Fmes cot bais of the eimentand the donation expense recognized by McCain & Lejune are $11,000 & 11,000, respectively. $8,000 & 11,000, respectively. $11,000 & 8,000, respectively. None of the above as FPPals did not purchase the equipment.

AcCain & Lejune, LLP donated equipment to FPPals. The equipment had a book value of $8.000 and fair value of $11000. Fmes cot bais of the eimentand the donation expense recognized by McCain & Lejune are $11,000 & 11,000, respectively. $8,000 & 11,000, respectively. $11,000 & 8,000, respectively. None of the above as FPPals did not purchase the equipment.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter20: Income Taxation Of Trusts And Estates

Section: Chapter Questions

Problem 25P

See similar textbooks

Similar questions

The president of ACCO 202 Corporation donated a building to Ana G. Méndez Corporation. The building had an original cost of $200,000, a book value of $75,000, and a fair market value of $180,000. To record this donation, Ana G. Méndez would a. Make a memorandum entry b. Debit Building for $75,000 and credit Gain for $75,000 c. Debit Building for $200,000 and credit Gain for $200,000 d. Debit Building for $180,000 and credit Gain for $180,000
CuddlePH accepted several office equipment from a stockholder which originally costed the donor P1,200,000. On the same date, the items had aggregated fair value totaling P985,000. The company incurred P30,000 for professional fees and transfer taxes related to the transaction. The amount was charged to other expenses. How much should be the credited as donated capital?
Magic accepted several office equipment from a stockholder which originally costed the donor P1,200,000. On the same date, the items had aggregated fair value totaling P985,000. The company incurred P30,000 for professional fees and transfer taxes related to the transaction. The amount was charged to other expenses. How much should be the credited as donated capital?
The president of Christmas Corporation donated a building to Tuesday Corporation. The building had an original cost of $675,000, a book value of $255,000, and a fair market value of $475,000. The journal entry by Tuesday Corporation to record this donation will include a debit Building for $255,000 and credit Gain for $255,000. debit Building for $675,000 and credit Gain for $200,000. debit Building for $475,000 and credit Gain for $200,000. debit Building for $475,000 and credit Gain for $475,000.
ABC Corporation accepted several office equipment from a stockholder which originally cost the donor 1,200,000. On the same date, the items had aggregated fair value totaling 985,000. The company incurred 30,000 for professional fees and transfer taxes related to the transaction. The amount was charged to other expenses. How much should be the credited as donated capital?
Simpson and Homer Corporation acquired an office building on three acres of land for a lump-sum price of $2,850,000. The building was completely furnished. According to independent appraisals, the fair values were $880,000, $1,320,000, and $2,200,000 for the building, land, and furniture and fixtures, respectively. The initial values of the building, land, and furniture and fixtures would be: Building Land Fixtures a. $ 880,000 $ 1,320,000 $ 2,200,000 b. $ 570,000 $ 855,000 $ 1,425,000 c. $ 855,000 $ 570,000 $ 1,425,000 d. None of these answer choices are correct. Option B Option C Option D Option A
On January 1, 20X1, the city government of Faraway donated property to Amazing, Inc., in return for the commitment from the company that it would build a manufacturing plant on the site and employ residents of the city in the plant. Information on the donated land appears below. Cost of the land paid by Faraway = $1,000,000 Fair valiue of the land at time of donation = $1,865,000 What is the donation revenue recognized by Amazing, Inc.?
Monty Corporation donates equipment and a truck to the community Home Assistance Centre. The equipment had a cost of $93,000, accumulated depreciation to the contribution date of $46,000, and a fair value of $46,000. The truck had a cost of $42,000, accumulated depreciation to the contribution date of $37,000, and a fair value of $24,000. Prepare the journal entry Monty Corporation would make for the donation.
7. Karen Company purchased a varnishing machine for P3,000,000 on January 1, 2019. The entity received a government grant of P500,000 in respect of this asset. The accounting policy is to depreciate the asset over 4 years on a straight line basis and to treat the grant as deferred income. How much deferred income from the government grant will be presented in the statement of financial position for 2019?
John’s uncle donated a truck to his company, John’s Corporation. The truck had an original cost of $95,000, a book value of $40,000, and a fair value of $55,000. The journal entry by John’s Corporation to record this donated asset will include a a. debit Truck for $60,000 and credit Gain for $20,000. b. debit Truck for $55,000 and credit Gain for $55,000. c. debit Truck for $95,000 and credit Gain for $95,000. d. debit Truck for $60,000 and credit Gain for $60,000.
Sanders Corporation acquired a furnished office building on two acres of land for a lump-sum payment of $4,800,000. An independent appraiser estimated fair values of $2,600,000, $1,560,000, and $1,040,000 for the building, land, and furniture, respectively. Compute the costs recorded by Sanders for the building, land, and furniture, respectively.
Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of acquisition, Garrett paid $20,000 for an appraisal, which revealed the following values: land, $100,000; buildings, $125,000; and equipment, $25,000. Required: 2. Assume that Garrett uses IFRS and chooses to use the revaluation model to value its property, plant, and equipment. At the end of the year, the book value of the land, buildings, and equipment are $88,000, $105,000, and $19,000, respectively. The company determines that the fair value of the land, buildings, and equipment at the end of year is $113,000, $107,000, and $16,000, respectively. Prepare the journal entries that Garrett should make to value its property, plant, and equipment.