Bizzare Company owns an office building that is being leased out to various companies. The company is required to provide security and maintenance services under lease contracts. The building was acquired 2 years ago at a total cost of P 6M. The accumulated depreciation at the beginning of the year is P 480,000. How much would be shown as investment property in Bizzare’s year-end financial statements?

Q: What is the amount of the gain or loss on this transaction?

A: Depreciation - This is the Method to Expense for using the asset during the period for the business…

Q: . Discuss the appropriate treatment in the financial statements of each of the following. a.    Gain…

A: A ) Gain on sale of investment securities ------records in Income statement under gains and other…

Q: On October 1st, you purchased a residentialhome in which to locate your professional office…

A: a) The first question askes to find the depreciation expense for the first year that the person…

Q: XYZ, a manufacturing company, purchases a property for Ghs1m on 1 January 2016 for its investment…

A: Using fair value method, the investment property is remeasure at the end of accounting period. Using…

Q: ) Young Company has provided information on intan- gible assets as follows. A patent was purchased…

A: The amortization cost for the year 2019 is $100,000. The amortization cost of patent is calculated…

Q: GGG Company ventured into construction of a condominium in Baguio which is rated as the largest…

A: IAS/IFRS 16 allowa an entity use either cost model or fair value model to record depreciation for a…

Q: On December 1, 20xo, AKE Pte Ltd paid $5,000 to a Real Estate consulting company for a market report…

A: Here Building Y is treated as Investment Property and          Building X is treated as PPE.

Q: Bizzare Company owns an office building that is being leased out to various companies. The company…

A: Lease contract means arrangement or agreement between two parties in which one party, that is lessor…

Q: Tristar Production Company began operations on September 1, 2016. Listed below are a number of…

A: 1.Journal entry to record the acquisition costs of the land, and building:

Q: . Evaluate each of the items a through e and prepare the journal entry that should be made to record…

A: On January 1, 2021, Stewart Corp. acquires a small local company Miller Inc. for $500,000 cash. Let…

Q: On 1st March 2011, Earthon LLC bought Equipment to be used as a storage facility at a cost of…

A: The question is multiple choice question  Required  Choose the Correct Option.

Q: Bergs Company owns a building purchased on January 1, 2018, for 50 million.  The building was used…

A: As per IAS 40 Investment property, An investment property is to be measured at fair value Book…

Q: CPL a manufacturing company, purchases a property for $1M on January 20x1 for its investment…

A: A. As per IAS 16, Property, plant and Equipment  In case Property is presented at cost model then it…

Q: GGG Company ventured into construction of a condominium in Baguio which is rated as the largest…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS   journal entry under  fair value model

Q: Company has equipment that originally cost $70,000, has $49,000 accumulated depreciation, and is…

A: Introduction: Journals entries

Q: Gage Co. purchases land and constructs a service station and car wash for a total of $540,000. At…

A: 1. DEPRECIATION : = ( TOTAL COST - SALVAGE VALUE ) / ESTIMATED LIFE    TOTAL COST : =$600,000…

Q: Werner's Fish House purchases a tract of land and an existing building for $870,000. The company…

A: When any land and building is purchased, initial expenditure is incurred to clean the land, tear…

Q: Company X incurred the following transactions in the current year. For each transaction, explain the…

A: Income tax means the charge or levy on the income earned which was collected by central government…

Q: In the income statement for 2020, what amount should be reported as gain from the sale of the truck?

A: Given information is: On December 31, 2020, Grains Company sold a truck to Bryan Company and…

Q: ABC Corporation was incorporated on January 2, 2016. The following items relate to the ABC's…

A: The total cost of fixed assets is calculated by adding the cost price and all other expenses…

Q: 1) McCoy's Fish House purchases a tract of land and an existing building for $1,000,000. The company…

A: Hey, Since there are multiple questions posted, we will answer first question. If you want any…

Q: Required a. Prepare journal entries to record these transactions. b. Prepare the necessary adjusting…

A: a. Journal entries: Date Particulars Debit Credit Jan 2 Prepaid rent $25,400            Cash…

Q: umulated depreciation a

A: Depreciation refers to the reduction in the value of an tangible asset over time due to use, wear…

Q: Joyce purchased the building in which their corporate office is housed on 1/1/21 for $4,700,000.…

A: Here discuss about the details of the options of purchase which was made either for the borrowing or…

Q: b. Black purchased a controlling interest in a vinyl flooring company. The expenditure resulted in…

A:

Q: A distribution center purchased an equipment for $100,000 and has depreciated the equipment using…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: GGG Company ventured into construction of a condominium in Baguio which is rated as the largest…

A: Fair value is the actual value of asset or liability on a particular date in the market which are…

Q: Calculate cost base, and capital gain (Loss), and capital gain tax, if any, considering Ajay decided…

A: Calculation of cost of acquisition                                  Amount Purchase price…

Q: The Bailand Company purchased a building for P 210,000 that had an estimated residual value of…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

Q: Ajay Ltd purchased a depreciating asset with the value of $5,000 on 31 March 1989. On the same day,…

A: Given: Ajay Ltd purchasedasset with $5,000 on 31 March 1989. The company paid ownership of $50. The…

Q: On January 1, 20x1, ABC Co. decided to lease out a building that was previously used as office…

A: On January 1, 20x1, ABC Co. decided to lease out a building that was previously used as office…

Q: On May 1, 2021, Q Incorporated entered into the following transactions: a.     Paid advertising…

A: As per Accrual Basis and Matching Concept of Accounting Only Expense which pertains to Reporting…

Q: XYZ Company, a calendar year business, purchased machinery on February 2, 2016. The purchase price…

A: Lets understand the basis. As per IAS 16 "Property plant and equipment" initially needs to record at…

Q: Bane Co. has the following assets on December 31, 2021: Land held for sale in the ordinary course…

A: Investment property is land or a building (including part of a building) or both that is: (i) held…

Q: Rhino Company, a real estate entity, had a building with a The building was used as offices of the…

A: Given information, Carrying amount of building =P20,000,000 Fair value of building =P35,000,000…

Q: On December 1, 20X0, AKE Pte Ltd paid $5,000 to a Real Estate consulting company for a market report…

A: Accounting Standards are the principles which are accepted and adapted by the users of accounting…

Q: Rahara Ltd purchased a piece of equipment for £600,000 on the Ist January 2021. The equipment is…

A: The question is related to Government Grant. Two methods of presentation in financial statements of…

Q: Kisses Company had the following property acquisitions of machineries during the current year: (a)…

A: Assets can be either current or non-current based on their term of life. Assets that lasts for more…

Q: A company purchased land for $76,000 cash. Commissions of $5,000, property taxes of $5,500, and…

A: The question is based on the concept of Business transaction analysis.

Q: Sage Ltd. owned several manufacturing facilities. On September 15 of the current year, Sage decided…

A: Cost of  Building : $6,325,000 Useful life : 25 years Depreciation Per annum : $6,325,000/25 years…

Q: 0 for a major overhaul to put the equipment in good running condition. The equipment  is available…

A: The journal entries is given as,

Q: The Bailand Company purchased a building for P 210,000 that had an estimated residual value of…

A: Depreciation represents the reduction in the value of long-term assets for the useful life of the…

Q: Presented below is information related to Cramer, Inc. Instructions Comment on the appropriateness…

A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…

Q: On January 10, 1997 NXT CO. Company purchased a building by paying $75,000. The building has an…

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

Q: During the current year, Hitchcock Developers disposed of plant assets in the following…

A: Disposal of asset: Disposal of asset is a non-recurring transaction, which record the sale of asset.…

Q: A restaurant chain purchases a two-acre tract of land and an existing building for $500,000. The…

A: Capitalization of expenses:-It means recorded of cost or expenses in the balance sheet incurred in…

Q: Paraiso company’s accounting policy with respect to investment properties is to measure them at fair…

A: The purchase cost of investment includes the price paid for making purchases, transaction charges…