Algy Realty receives notice that its property is condemned to make room for a highway. The proceeds of the award are $2,200,000 and the adjusted basis of the property is $950,000. The realized gain is:
Q: Bright Limited is considering whether or not to accept a special contract to supply 2,000 identical ...
A: Solution The relevant cost are those which cost which increases / decreases the total cost of carryi...
Q: Which of the following information should be disclosed in the summary of significant accounting poli...
A: Significant accounting policies are the policies used in preparation and presentation of financial s...
Q: The Atlantic Medical Clinic can purchase a new computer system that will save $6,000 annually in bil...
A: In order to compute the maximum amount that Atlantic Medical Clinic should pay, the annual savings a...
Q: Prepare Trading and Profit and Loss A/C for the year ending 31* March 2020 and a Balance Sheet as on...
A: Trading Account is a financial statement that shows the result of buying and selling goods and servi...
Q: 2. Analyze the statement of financial position for the year 2020 and compare it with the year 20...
A: Consolidated statement of financial position is a statement which depicts the resources owned by the...
Q: Mickley Company's plantwide predetermined overhead rate is $22.00 per direct labor-hour and its dire...
A: Answer) Calculation of Total Manufacturing Cost Assigned to Job A-500 Amount Direct Mat...
Q: A government entity, which is a lessee under a finance lease. recognizes an asset acquired under a f...
A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new q...
Q: Vertical Analysis of Balance Sheets Consolidated balance sheets for Winged Manufacturing follow. ...
A: Winged Manufacturing Consolidated Balance Sheets Dec 31, 2023 Dec 31, 2022 ASSETS ...
Q: In solving for the annual cost of an asset, yearly depreciation is considered an expense. During the...
A: Depreciation is defined as the reduction in the value of fixed asset due to normal wear & tear,...
Q: Consider Southeast Home Care, which is a for-profit business. In 2020, its net income was $1,500,000...
A: RE termed as Retained Earnings refers to the balance sheet account presented under section of equity...
Q: Zhongli Co. (lessee) entered into a contract of lease with Rex Lapis Co. (lessor) that allows Zhongl...
A: The operating lease is recorded at the present value of the minimum lease payment. This present valu...
Q: Amortization schedule must include Interest calculation and a running balance
A: An amortization schedule is to be created for the given data. Amortization of loan has equal monthly...
Q: A draw bench for precision forming and strengthening of carbon steel tubing has a cost of S950,000. ...
A: >Accounting principle states that the cost of the long term assets (like equipment) is to be capi...
Q: Question: The statements of financial position of Grand Company at the beginning and end of 2017 inc...
A: Cash paid for acquisition of property, plant and equipment = Ending balance of property, plant and e...
Q: Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and...
A: Product Costs: Product Costs mean the direct costs incurred for the production of a product. Product...
Q: Exercise 9-3 Accounting for note payable LO P1 Sylvestor Systems borrows $70,000 cash on May 15 by s...
A: Answer 1) Calculation of maturity date of notes payable Maturity date of note = Issue date of note +...
Q: On April 1, 2021, Western Communications, Inc., issued 12% bonds, dated March 1, 2021, with face amo...
A: Journal Entry: It is the act of recording business transaction(either economic or non-economic) i...
Q: What is the difference between recognition and realization of a deferred tax asset?
A: A deferred tax asset is a balance-sheet item that decreases a company's taxable income in the future...
Q: On February 1, 20x1, Paco Corp. acquired outstanding ordinary shares of School Inc. for cash. The in...
A: Working paper elimination entries are prepared in the consolidation process of group companies’ acco...
Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the...
A: Depreciation expense per unit = (Cost of machine - Salvage value) / Total units of production Deprec...
Q: Exerclse 8-16 Disposal of assets LO P2 Diaz Company owns a machine that cost $126.800 and has accumu...
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for y...
Q: QUESTION 4 On Jan. 1, 2017, Acme Industries put into service a milling machine that had a capitalize...
A: Introduction:- Depreciation is a term used in accounting to describe a method of distributing the co...
Q: urnal entries for Damle d Do not Indent manuall
A: Damien Jurado purchased an insurance policy for 2 years on 1st July 2022. Since the policy has been ...
Q: Out of 6 principles of internal control activities (i establishment of responsibility, ii. Segregati...
A: Internal Control system It is important for the business entity which has strong internal control sy...
Q: find out value of account receivable from following Cash $ 48,000 account payable $ 33,000 office eq...
A: Introduction:- The following basic fundamental equation is used for preparation of balance sheet as ...
Q: January 1, 20x1, Peter Corp. acquired the identifiable net assets of Ella Corp. by paying cash of P1...
A: Consideration is an amount that the company will pay to the acquirer company at the time of acquisit...
Q: Cash flows It is typical for Jane to plan, monitor, and assess her financial position using cash flo...
A: ANSWER A) 1. Calculation of total cash inflow Interest received =$440 Salary ...
Q: Explain in your own words the meaning of the terms in the figure from Unit 3 below: Assurance, Inter...
A: An audit refers to a process wherein the auditor examines or inspects numerous books of accounts in ...
Q: The following summary transactions occurred during 2021 for Bluebonnet Bakers: Cash Received from: C...
A: Cash Flow Statement The purpose of preparing the cash flow statement is to know the movement of cash...
Q: If retained earnings were used instead of new issuances, what wo
A: In this question, we have to find the cost of equity and the new financing cost.
Q: Disposition of Assets: Journalizing Mitchell Parts Co. had the following plant asset transactions du...
A: The Cost of an asset represents what is paid to purchase the assets. And the Accumulated Depreciatio...
Q: Statement 1: Items under comprehensive income such as Revaluation Surplus are reported both on the S...
A: Solution Concept When we revalue the asset , the increase or decrease in the value will be transferr...
Q: A company has return on sales of 20%, income of $50,000, selling price of $10, and a contribution ma...
A: Solution.. Return on sales = 20% Net income = $50,000 Selling price = $10 Contribution margin = ...
Q: An insurance premium of $6,300 was paid on March 1, 2020, and was charged to Prepaid Insurance. The ...
A: The question is based on the concept of Financial Accounting.
Q: 2. What is the measurement of the equipment that ceases to be held for sale on December 31, 2023? * ...
A: Held for sale refers to the assets which the organization has intention to sell off, when the assets...
Q: A piece of equipment costing $3,000 was stolen. The insurance company reimbursed the company $1,000....
A: Equipment stolen of $ 3000. Loss= $ 2000-$1000 = $1000
Q: 1. It refers to all remuneration for services performed by an employee for his employer under an emp...
A: ANSWER THE CORRECT OPTION IS B) GROSS COMPENSATION GROSS COMPENSATION REFERS TO ALL REMUNERATION FOR...
Q: Carla Vista Company purchases a patent for $147,200 cash on January 2, 2021. Its legal life is 20 ye...
A: Intangible assets such as patents, copyright etc are initially recorded at cost.
Q: QUESTION 19 When a company decreases the estimated useful life of a PP&E asset O a. It is admitting ...
A: Depreciation refers to a decline in asset value over its useful life.
Q: A draw bench for precision forming and strengthening of carbon steel tubing has a cost of S950,000. ...
A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life
Q: Required Information Use the following information for the Exercises below. [The following informati...
A: Solution:- Straight line method is one of the depreciation method. It is simplest method compared to...
Q: Sweet Tooth Candy Company has computed the net present value for capital expenditure at two location...
A: The question is based on the concept of Financial Management.
Q: The following is a partial trial balance for the Green Star Corporation as of December 31, 2021: Acc...
A: The income statement is one of the financial statements of the business which tells about the profit...
Q: Company H started its operations in 2021 and made the following asset purchases: asset purch...
A: GIVEN Company H started its operations in 2021 and made the following asset purchases: ...
Q: QUESTION 9 On July 1, 2015, ABC Corporation purchased a patent asset for $21,600 and a trademark ass...
A: Amortization expense is the write-off of an intangible asset over its anticipated useful life, indic...
Q: On January 1, 20x5, Paz acquired 80% of Shey outstanding ordinary shares for P950,000. Paz uses the ...
A: While preparing the consolidated balance sheet, the total assets of the acquired and acquirer compan...
Q: Overheads applied are calculated by:
A: Applied overheads are an indirect cost that is directly related to the manufacturing of products but...
Q: On January 1, 2019, Pharoah Inc., a construction company, leased an excavator from Leaselt Inc. The ...
A: The right of use asset is calculated as present value of annual lease payments and residual value at...
Q: A company's financial statements states that amounts are reported in thousands of dollars. Its incom...
A: Introduction: Financial statements are helpful for the following reasons: determining a company's ab...
Q: Balance sheet preparation Use the appropriate items from the following list to prepare in good form...
A: Solution Working note Calculation of net income Sales Revenue 3564 Less cost of goods sold...
Step by step
Solved in 2 steps
- LO.3 Renata Corporation purchased equipment in 2017 for 180,000 and has taken 83,000 of regular MACRS depreciation. Renata Corporation sells the equipment in 2019 for 110,000. What is the amount and character of Renatas gain or loss?(Appendix 11.1) Auburn Company purchased an asset on January 1, Year 1, for 150,000. The asset has a MACRS life of 7 years. The residual value of the asset is 35,000. Calculate the depreciation expense for Year 1 and Year 2 using MACRS.Ashton Company exchanged a nonmonetary asset with a cost of 30,000 and accumulated depreciation of 16,000 for another nonmonetary asset worth 12,000. Ashton also received 1,400 cash. In the entry to record this exchange, Ashton should record a: a. 2,000 gain b. 2,000 loss c. 600 gain d. 600 loss
- A SE company has on its books for its proved property: P/P- tangible assets $50,000 Well and E&F $220,000 Accumulated DD&A $32,000 If the entire proved property is sold for $220,000, what will be any gain or loss? AccouintingH6. A business sells real property for $950,000, with $600,000 of this amount being allocated to the building and the remaining $350,000 allocated to the land. The building, the only asset in its Class, had a capital cost of $800,000 and a UCC of $650,000. The adjusted cost base of the land was $250,000. What are the tax consequences of this disposition? A capital gain of $50,000 and a terminal loss of $50,000 © A capital gain of $100,000 and a capital loss of $50,000 C A capital gain of $50,000 and a terminal loss of nil © A capital gain of $100,000 and a terminal loss of $50,000 Please give accurate response Show proper step by step calculationBlossom Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $466,200. The estimated fair values of the assets are land $88,800, building $325,600, and equipment $118,400. At what amounts should each of the three assets be recorded? (Round intermediate percentage calculations to 5 decimal places e.g. 18.25124 and final answers to 0 decimal places, e.g. 5,275.) Recorded Amount Land $enter a dollar amount rounded to 0 decimal places Building $enter a dollar amount rounded to 0 decimal places Equipment $enter a dollar amount rounded to 0 decimal places
- Q: Determine the cost of the amount to be reported for the followings. JJ Company acquires real estate at a cash cost of Rs= 1,000,000. The property contains an old warehouse that is razed at Rs=40,000 in costs and Rs15,000 proceeds from salvaged materials. Additional expenditures are the attorney’s fee =Rs5,000, and the real estate broker’s commission= Rs25,000. Required: Determine the amount to be reported as the cost of the land? DD Company purchases a delivery truck at a cash price of Rs=840,000. Related expenditures are sales taxes Rs= 26,400, painting and lettering Rs=10,000, motor vehicle license Rs= 1200, and a three-year accident insurance policy Rs=30,000. Compute the cost of the delivery truck?9. Entity A acquires an investment property for ₱1,000,000 cash. Additional costs incurred are as follows: • Repairs and remodeling before occupancy, ₱50,000. • Legal costs of transferring title to the property, ₱20,000. • Repairs after occupancy, ₱15,000. The investment property is estimated to have a remaining useful life of 10 years and a residual value equal to 5% of the initial cost. Entity A uses the straight-line method of depreciation. How much is the carrying amount of the investment property under the cost model after one year? a. 923,100 b. 968,350 c. 872,100 d. 914,850A purchased B, paying $850,000 cash. The books values and fair values of acquired assets and liabilities were: Book asset - Fair Value Current assets net: $130,000 - $125,000 Property, plant, equip: 600,000 - 750,000 Liabilities: 175,000 - 175000 A would record goodwill of: A. $0. B. $150,000 C. $345,000 D. $850,000
- a. Identify the following transactions as either Capital Expenditure or RevenueExpenditure.i). Pay salary and wages for November 2020 amounting to RM6,200.ii). Purchase vehicle for business use amounting to RM145,000.iii). Depreciation expense for financial year ended 2020 amounting to RM21,000.iv). Purchase stationery for office use amounting to RM450.v). Acquire a building amounting to RM520,000.vi). Repair office door amounting to RM800.30.The following expenditures were incurred by an entity during 2021. A piece of land with a dilapidated building was acquired and immediately construction of a new building began. Upon completion of the building, the entity acquired several pieces of machinery for use in its operations.Cash paid on purchase of land-P4,500,000Mortgage assumed on the land bought-P5,000,000Legal fees and title verification expenses-P50,000Payment to squatters on the property to vacate the premises -P100,000Demolition costs incurred-P80,000 Proceeds from sale of salvaged materials-P45,000 Paid to contractor for a building erected-P12,000,000Building permit fees-P20,000Excavation expenses-P50,000Architect’s fees-P150,000Capitalized interest cost on building constructed-P18,000 What are the costs of Land and Building, respectively? Apply the principles prior to the amendments to PAS 16 that is effective on January 1, 2022. a. 9,685,000 and 12,238,000 b. 9,650,000 and 12,273,000 c. 9,550,000 and…Q) Determine the capitalized cost at 12% interest of a structure with an initial cost of $300,000 and annual operating and maintenance costs of $45,000, commencing 3 years after the construction of the structure. Not use excel