Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5)[The following information applies to the questions displayed below.]Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, beganbusiness in 2019. In the process of setting up the business, Karane has acquired various types ofassets. Below is a list of assets acquired during 2019:Date Placed inAssetCostService$ 150,0001,560,00040,000Office furniture02/03/2019MachineryUsed delivery truck*07/22/201908/17/2019*Not considered a luxury automobile.During 2019, Karane was very successful (and had no §179 limitations) and decided to acquiremore assets in 2020 to increase its production capacity. These are the assets acquired during2020:Date Placed inAssetCostServiceComputers & info. systemLuxury autotAssembly equipmentStorage building$ 400,00080,0001,200,000700,00003/31/202005/26/202008/15/202011/13/2020tUsed 100% for business purposes.Karane generated taxable income in 2020 of $1,732,500 for purposes of computing the §179expense limitation. (Use MACRS Table 1, Table 2, Table 3, Table 4, Table 5, and Exhibit 10-10.)(Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.)Comprehensive Problem 10-76 Part aa. Compute the maximum 2019 depreciation deductions, including §179 expense (ignoring bonus depreciation).

Depreciation is a concept that is used to write off the cost of an item over its usable life.…

Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) The following information applies to the questions displayed below.] Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2019. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2019: Date Placed in Asset Cost Service $ 150,000 1,560,000 40,000 Office furniture Machinery Used delivery truck* 02/03/2019 07/22/2019 08/17/2019

Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) The following information applies to the questions displayed below.] Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2019. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2019: Date Placed in Asset Cost Service $ 150,000 1,560,000 40,000 Office furniture Machinery Used delivery truck* 02/03/2019 07/22/2019 08/17/2019

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 13E

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20 Takatak, Inc., uses the group depreciation method for its furniture account. The depreciation rate used for furniture is 21%. The balance in the furniture account on December 31, 2019, was P125,000, and the balance in Accumulated Depreciation - Furniture was P61,000. The following purchases and dispositions of furniture occurred in 2020 (assume that all purchases and disposals occurred at the beginning of each year). Assets Sold Assets Purchased Cost Selling Price P35,000 P27,000 P8,000 The carrying amount of furniture at December 31, 2020 is Group of answer choices P71,070 P44,070 P64,750 P63,070
WITH SOLUTION /COMPUTATION 64.On December 31,2019, an entity sold a machine with useful life of 10 years to another entity andsimultaneously leased it back for two years at annual rental of P360,000. Sale price at fair value 3,600,000 Caryingamount 3,300,000 What amount of revenue from sale of the machine should be reported in 2019? 150,000 300,000 360,000 180,000
E9-22 Gain Contingency On December 31, 2019, Braino Tech Inc. learned that its competitor had introduced a prod-uct using an accessory to which Braino has exclusive patent rights. Braino planned to file suit and its attorneys esti-mated that Braino should recover at least $500,000. Braino’s December 31, 2019, year-end financial statements were issued March 2, 2020. At that date, Braino still planned to file suit, even though it had not yet done so. Required: Next Level Discuss the accounting treatment in regard to the 2019 financial statements of Braino Tech called for by GAAP concerning the described circumstances. Be sure to conceptually justify this treatment.
E10-6 Acquisition of Land and Building On February 1, 2019, Edwards Corporation purchased a parcel of land as a factory site for $100,000. It demolished an old building on the property and began construction on a new building that was completed on October 2, 2019. Costs incurred during this period are: Demolition of old building $8,000 Architect’s fees $25,000 Legal fees for title investigation and purchase contract $4,000 Construction costs $650,000 Edwards sold salvaged materials resulting from the demolition for $2,000. Required: 1. At what amount should Edwards record the cost of the land and the new building, respectively? 2. Next Level If management misclassified a portion of the building’s cost as part of the cost of the land, what would be the effect on the financial statements?
7- Tamra, Inc. began work on a $ 7000,000 contract in 2019 to construct an office building. During 2010, Tamra, Inc. incurred costs of $1,700,00, billed their customers for $1,200,000, and collected $960,000. At December 31,2019, the estimated future costs to complete the project total $3,300,000.Instructions: compute Tamra’s Gross profit to be recognized in 2019?
At December 31, 2020, Green company had three existing patents shown below: Date Acquired Cost Useful life Patent A February 14, 2016 P 150,000 8 years Patent B January 3, 2019 210,250 10 years Patent C July 1, 2019 72,000 5 years During 2021, the company had the following transactions and assessments: Due to the emerging competition relating to the product being manufactured in Patent A, it is expected that the right will be useful only in 2021 and 2022. Patent B is believe to be uniquely useful as long as the company retains the right to use it. On June 1, 2021, the company unsuccessfully attempted to defend its right to Patent C. Legal fees of P15,000 was incurred in this action. The asset was immediately derecognized in the accounts. The company’s policy is to take full year amortization in the year of acquisition and no amortization in the year of derecognition using straight-line method. How…
Problem 13The Eduardo Company, an SME, started in business on January 1, 2019, by acquiring three machineshaving a costs of P52,400, 40,000, and P44,000, respectively. Since that date, the company has computeddepreciation at 20% on the balance of the asset account at the end of each year, which amount has beencredited directly to the asset account. All purchases since January 2019, have been debited to themachinery account and the cash received from sales has been credited to the account.The following transactions took placea. On September 30, 2019, a machine was purchased on an installment basis. The list price was P60,000,but 12 payments of P6,000 each were made by the company. Only the monthly payments wererecorded in the machinery account starting with September 30, 2019. Freight and installation chargesof P2,000 were paid and entered in the machinery account on October 10, 2019.b. On June 30, 2020, a machine was purchased for P80,000, 2/10, n/30, and recorded at P80,000 whenpaid…
E 12-9 Research and Development Cost In 2019, Lalli Corporation incurred R&D costs as follow: Materials used from inventory 100,000 Personnel in R&D lab 100,000 Allocation of the cost of utilities and maintenance costs of the R&D facility 50,000 These costs relate to a product that will be marked in 2020. The company estimates tht these costs will be recouped by December 31, 2020. Required: 1. What is the amount of R&D cost expensed in 2019? 2. Would your answer change if the materials were purchased and not used or if the utilities and maintence costs were related to the corporate offices?
5 On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $15 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information. 2 points eBook Print References The book value of the assets of the segment at the time of the sale was $12 million. The loss from operations of the segment during 2024 was $4.5 million. Pretax income from other continuing operations for the year totaled $6.6 million. . The income tax rate is 25%. . · ● Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4. CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2024 Income from continuing…
12 The following costs were incurred by ABCDEFGH, Inc.. during 2020: July 1 Organization fees P120,000 July 2 Land site and old building 1,890,000 July 3 Option payments 250,000 July 20 Broker’s fees on property acquired 110,400 July 30 Cost of remodeling the building 60,000 August 30 Salaries of executives 360,000 December 21 Real property taxes 240,000 Additional information: The building acquired had a fair value of P450,000 while the land was currently appraised at P1,800,000 P50,000 of the option money paid were for properties not acquired. The executives had no participation on the remodeling of the building The property taxes were for the 2020 calendar year. How much is the cost of land? Group of answer choices 1,856,320 1,992,320 1,512,000 2,288,000
Colorado Pte Ltd commenced its first non-structural renovation works in accounting year 2017 at the cost of $120,000 and incurred a further $70,000 in accounting year 2018. In accounting year 2019, it upgraded its reception area and spent $250,000 on non-structural renovation costs. What is the amount deductible under Section 14Q in Year of Assessment 2020? Group of answer choices $100,000 $36,667 $116,667 $70,000
5. On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $15 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information. The book value of the assets of the segment at the time of the sale was $12 million. The loss from operations of the segment during 2024 was $4.5 million. Pretax income from other continuing operations for the year totaled $6.6 million. The income tax rate is 25%. Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4.