BBC corporation at the beginning of the current year reported 1,750,000 of appropriated retained earnings for the construction of the new building which was completed late in the current year. For the current year 1,200,000 was appropriated for plant expansion. 1,500,000 cash was restricted for the retirement of bonds payable. Also, the company acquired treasury shares for a total cost of 500,000. 1. On December 31 of the current year, the entity should report appropriated retained earnings of?

BBC corporation at the beginning of the current year reported 1,750,000 of appropriated retained earnings for the construction of the new building which was completed late in the current year. For the current year 1,200,000 was appropriated for plant expansion. 1,500,000 cash was restricted for the retirement of bonds payable. Also, the company acquired treasury shares for a total cost of 500,000. 1. On December 31 of the current year, the entity should report appropriated retained earnings of?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter7: Corporations: Reorganizations

Section: Chapter Questions

Problem 40P

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At the beginning of the current year, Red Co. reported P1,750,000 of appropriated retained earnings for the construction of the newbuilding which was completed late in the current year. For the current year, P1,200,000 was appropriated for plant expansion. P1,500,000 cash was restricted for the retirement of bonds payable. Also, the company acquired treasury shares for a total cost of P500,000. On December 31 of the current year, the entity should report appropriated retained earnings of A.P2,700,000B.P2,950,000C.P3,200,000D.P1,200,000
At the beginning of the current year, Permission to Dance Co. reported P1,750,000 of appropriated retained earnings for the construction of the newbuilding which was completed late in the current year. For the current year, P1,200,000 was appropriated for plant expansion. P1,500,000 cash was restricted for the retirement of bonds payable. Also, the company acquired treasury shares for a total cost of P500,000. On December 31 of the current year, the entity should report appropriated retained earnings of a. P2,700,000 b. P3,200,000 c. P2,950,000 d. P1,200,000
On January 1, 2021, John Kyle Corporation acquired land that will be used for management's office. This land cost 1,000,000. The entity borrowed 2,000,000 with an annual interest of 10% specifically for the construction of the office building and 5,000,000 with an annual interest of 12% for general purpose. The company's capital expenditure amounts to 2,000,000 on January 1, 2021, 1,000,000 on June 30, 2021, 800,000 on September 30, 2021 and 1,000,0000 on January 1, 2022. The construction of the new building ended at June 30, 2022. What is the borrowing cost capitalized in December 31, 2021? * P270,000 P324,000 P416,000 P284,000
On January 1, 2021, John Kyle Corporation acquired land that will be used for management's office. This land cost 1,000,000. The entity borrowed 2,000,000 with an annual interest of 10% specifically for the construction of the office building and 5,000,000 with an annual interest of 12% for general purpose. The company's capital expenditure amounts to 2,000,000 on January 1, 2021, 1,000,000 on June 30, 2021, 800,000 on September 30, 2021 and 1,000,0000 on January 1, 2022. The construction of the new building ended at June 30, 2022. What is the carrying amount of PPE in December 31, 2022? * a. P6,354,000 b . P6,454,040 c. P6,454,080 d. P6,363,040
At January 1, 2020, ABC Company reported P1,750,000 of appropriated retained earnings for the construction of a new office building which was completed in 2020 at a total cost of P1,500,000. In 2020, ABC appropriated P1,200,000 of retained earnings for the construction of a new plant. Also, P2,000,000 of cash was restricted for the retirement of bonds due in 2010. In its December 31, 2020 statement of financial position, ABC should report what amount of appropriated retained earnings? (Round answer to whole number)
This year, Sigma, Incorporated generated $612,000 income from its routine businessoperations. In addition, the corporation sold the following assets, all of which wereheld for more than 12 months:Initial BasisAccumulatedDepreciation* Sale PriceMarketable securities $ 144,000 $ 0 $ 64,000Production equipment 93,000 76,000 30,000Business realty:Land 165,000 0 180,000Building 200,000 58,300 210,000*Through date of sale.Required:a. Compute Sigma’s taxable income assuming that it used the straight-line method tocalculate depreciation on the building and has no nonrecaptured Section 1231losses.b. Recompute taxable income assuming that Sigma sold the securities for $150,000rather than $64,000.
Show your work At the beginning of the year, Teal Corporation had accumulated E & P of $210,000. On March 30, Teal sold an asset at a loss of $200,000. For the calendar year, Teal incurred a deficit in current E & P of $305,000, which includes the $200,000 loss on the sale of the asset. If Teal made a distribution of $50,000 to its sole shareholder on April 1 and the shareholder had a basis in her stock of $72,000, how will the shareholder be taxed?
As a long-term investment, Painters’ Equipment Company purchased 20% of AMC Supplies Inc.’s 400,000 shares for $480,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $250,000 and distributed cash dividends of 25 cents per share. At year-end, the fair value of the shares is $505,000. Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. 2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.
At the beginning of the current year, Lemon Company purchased 40% of the outstanding ordinary shares of an investee paying ₱2,560, 000 when the carrying amount of the net assets of the investee equaled ₱5,000,000. The difference was attributed to building which had a carrying amount of ₱1,000,000 and a fair market value of ₱1,600,000, and to machinery with a carrying amount of ₱1,200,000 and fair market value of ₱2,000,000. The remaining useful life of the machinery and building was 4 years and 12 years, respectively. During the current year, the investee reported net loss of ₱1,600,000 and paid dividends of ₱1,000,000. What is the carrying amount of the investment in associate at year end? A. ₱1,420,000 B. ₱ 1,270,000 C. ₱ 2,700,000 D. ₱ 2,550,000
Jugular Company started construction on a building on January 1 of the current year and completed construction on December 31 of the same year. The entity had only two interest-bearing notes outstanding during the year, and both of these notes were outstanding for all 12 months of the year.The following information is available:Average accumulated expenditures 2,500,000Ending balance in construction in progress beforecapitalization of interest 3,600,0006% note incurred specifically for the project 1,500,0009% long-term note 5,000,000What is the total cost of the building?a. 3,780,000b. 3,680,000c. 3,750,000d. 3,825,000
As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 470,000 shares for $550,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $320,000 and distributed cash dividends of 20 cents per share. At year-end, the fair value of the shares is $582,000. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. 1. Record the purchase of AMC Supplies shares for $550,000 as a long-term investment. 2. Record Painters' Equipment's share of AMC Supplies' $320,000 net income. 3. Record the cash dividend of 20 cents per share. 4. Record any necessary year-end adjusting journal entry when the fair value of the shares held are $582,000 at year-end.
lab Company’s accounting policy with respect to investment properties is to measure them at fair value at the end of each reporting period. One of its investment properties was measured at P8,000,000 on December 31, 2020.The property had been acquired on January 1, 2020 for a total of P7,600,000, made up of P6,900,000 paid to the vendor. P300,000 paid to the local authority as a property transfer tax and P400,000 paid to professional advisers. The useful life of the property is 40 years. What is the gain to be recognized in profit or loss for the year ended December 31, 2020 in respect of the investment property? * P400,000 P590,000 P700,000 P800,000 answer not given