he cost of a new building that is currently under construction, not for sale but for a company's own use, is reported on the balance sheet:
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17
The cost of a new building that is currently under construction, not for sale but for a company's own use, is reported on the balance sheet:
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as an asset called Work in Process.
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after construction is complete.
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as an asset called Construction in Progress.
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as a liability until construction is complete.
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- Property Plant Equipment will be classified at year end at what amount? "Apply PAS 36" Historical Cost Cost Lower of Cost or Net Realizable Value Carrying Value2. A building is purchased on June 1, 2019, and has a value of $360,000. Assume that theDeclining Balance Method of Depreciation is used:a) Calculate the Depreciation Expense for the first year of ownership of this building ifthe fixed percentage allowed for buildings is 5%.b) Write the adjusting journal entry, dated June 31, 2019, to record the depreciationexpense for the month of June.c) Show the Fixed Assets section of the Balance Sheet at June 31, 2019.d) Write the adjusting journal entry, dated June 31, 2020, to record the depreciationexpense for the month of June.e) Show the Fixed Assets section of the Balance Sheet at June 31, 2020.The useful life of an item of property, plant and equipment is: A. The length of time it is productively used in a company's operations.B. Never related to its physical life.C. Its productive life, but not to exceed one year.D. Determined by the FASB.E. Determined by law.
- 39 - In which of the following accounts, the central heating installation made by the enterprise for a building rented is accounted for?A) Ongoing InvestmentsB) BuildingsC) General Administrative ExpensesD) Special CostsE) GoodwillHelp me to answer this with supporting computation: requirement 1: What is the impairment loss to be recognized for 2020? Requirement 2: How much will be the depreciation expense for the year ended December 31, 2021?REQUIRED: A. Based on the application of the necessary procedures and appreciation of the above data, you are to provide the answers to the following: 1. What is the gain on sale of truck on September 30? 2. What is the gain on sale of machinery on December 20? 3. What is the adjusted balance of the cost of property, plant and equipment as of December 31, 2022? 4. What is the total depreciation expense for the year ended December 31, 2022? 5. What is the carrying amount of the property, plant and equipment as of December 31, 2022? B. Show the lapsing schedule as of December 31, 2022.
- PROVIDE ANSWER PLEASE a. What is the balance of construction in progress to be reported by Entity A onA. P 1,250,000B. P 6,000,000C. P 9,000,000D. P 3,600,000 b. What is the gross profit (gross loss) to be reported by Entity A for the year ended December 31, 2022?A. P 900,000B. P 1,200,000C. P(1,500,000)D. P(2,400,000) c. What is the cost of construction to be reported by Entity A for the year ended December 31,2022?A. P 4,500,000B. P 4,400,000C. P 4,200,000D. P 4,000,000Question Prepare the statement of profit or loss of Amazing Enterprise for the year ended 30 April 2021.Required information [The following information applies to the questions displayed below.] On January 8 of year 1 Javier purchased and placed in service a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,399,500; $322,000 was allocated to the basis of the land and the remaining $1,077,500 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) a. Using MACRS, what is Javier’s depreciation deduction on the building for years 1 through 3? b. What would be the year 3 depreciation deduction if the building was sold on February 26 of year 3? d. Assume the building is residential property. Using MACRS, what is Javier’s depreciation deduction on the building for years 1 through 3?
- Part C1 and C2 C1 Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model for the sale of the machine to calculate the gain or loss on the sale of one of the machines on January 2, 2021, for $60,000. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) C2 Assume that this equipment account represents the cost of 5 identical machines. Prepare the journal entry for the sale of the machine to calculate the gain or loss on the sale of one of the machines on January 2, 2019, for $60,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) The balance sheets of HiROE Inc. showed the following at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Equipment, less accumulated depreciation of $212,625 at December 31, 2020, and $151,875 at December 31, 2019. $ 273,375 $ 334,12518-Preparing an asset for sale after its useful life is a: a. Maintenance support cost b. Research and development cost c. Disposal cost d. Production and Construction costStatement 1: All property, plant and equipment shall be initially measured at cost and presented in the financial statement at its recoverable amount.Statement 2: The estimated useful life of the asset including the depreciation expense recognized during the period is a must to be disclosed in the financial statement. Group of answer choices Both statements are incorrect. Both statements are correct Only statement 1 is correct. Only statement 2 is correct
