How do you determine the basis of acquired property in a like-kind exchange?  Give an example

Q: What entry is made when selling a fixed asset?

A: Following entry is passed when selling the fixed assets:

Q: e five methods to determine the arm’s-length price in a sale of the tangible property? How does the…

A: The Government provides five ways for determining an arm's length price in a transaction of tangible…

Q: how the value of the property is established through an appraisal?

A: Appraisal of a property is done to understand the highest probable price for a property and to…

Q: Why might the actual holding period for a property be different from the holding period that was…

A: The consideration while anticipating holding period: 1.The rental from the property. 2.The rate at…

Q: What is a land contract?

A: Land contract: A land contract is a course of action between a consumer and a dealer that applies to…

Q: Are perishable and homogeneous properties alike? How the possibilities of usury should be observed…

A: Introduction:- Making unethical or immoral monetary loans that unfairly advantage the lender is…

Q: fair value model for investment property differ from the revaluation model for PPE

A: Fair value model and revaluation model are methods of valuation of non-current assets as per…

Q: Which of the following has the right to sell an asset at a predetermined price?

A: A put option is an instrument which provides its holder an option to sell an underlying asset on a…

Q: How can a leased fee estate have a value that could be transferred to another party?

A: The question is based on the concept of valuation of real estate used under lease arrangement.

Q: Which two models may an entity opt for when accounting for investment property?

A: Investment property is a type of properly held by personnel for the intention of earning returns…

Q: Explain the term Right of Entry: Lender in Possession?

A: The question is based on the concept of giving right of entry in case of mortgage arrangement in…

Q: What is included in the original cost of property, plant, and equipment and intangible assets…

A: Original Cost of Property, Plant and equipment and intangible assets acquired in exchange…

Q: what are some pros and cons of holding high level of current assets in relation to sale?

A:

Q: why does fair value seeking for an acquisition?

A: Reasonable worth is a term with a few implications in the monetary world. In contributing, it…

Q: How much is the gain or loss on sale of the land, if any?

A: G)                                                           Gain or loss on sale of land   A…

Q: What basic principle do U.S. GAAP and IFRS rely upon in recording the initial acquisition value for…

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: What is the difference between tangible and intangible assets?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What is the motivation for a sale-leaseback of the land?

A: Lease is the agreement between the two parties that is lesser and lessee where lesser allows the…

Q: What would be the gain or loss on sale of land in the transaction attached? Why?

A: Gain or loss from sale of asset is calculated when book value of the asset is different from the…

Q: How do you identify intangible assets such as usufruct in modern transactions? Justify with examples

A: In a usufruct, the property rights of usus and fructus are merged. Usus refers to the right to use…

Q: how the appraiser will adjust the comparable sales for any differencesbetween the subject property…

A: To qualify as a comparable a property must resemble the subject in size, shape, design, utility and…

Q: How should goodwill be amortized?

A: Goodwill is an example of intangible assets which has no physical identity.

Q: Which are the Limitations on Property Rights?

A: Property rights are the rights given to the owner as per law to hold or own a property. A property…

Q: How does a seller financing differ from a land contract ?

A: In the real estate context, seller financing means the seller transfer the title to the buyer of the…

Q: What is the goodwill arising from the acquisition?

A: A business combination occurs when an entity acquires control over an organization. Asset purchases…

Q: Under what conditions should financing be explicitly considered when estimating the value of a…

A: Before buying a property, estimating its value is necessary. Because only after estimating the value…

Q: can goodwill be amoritized?

A: Goodwill: Goodwill is an intangible asset to the company. However, goodwill is recorded in the books…

Q: Which of the following features of an asset closely links its definition to the scien Economics? A.…

A: Asset refers to any resource which is owned or controlled through the business and it is anything…

Q: How do you identify intangible assets such as usufruct in modern transactions

A: Goodwill, brand awareness, and proprietary information like as patents, trademarks, and copyrights…

Q: What is the cost of right of use of asset?

A: Given in the question: Sales Price 20,000,000 Fair Value 18,000,000 Carrying Amount…

Q: gain is to be recognized

A: Carrying amount of the non-monetary asset = Cost - Accumulated depreciation Given that,   Cost…

Q: What is the nature of a sale on consignment?

A: Consignment is a business sale transaction between a consignor and a consignee. Under consignment…

Q: As a result of the transaction, what is the effect on the profit or loss? what is the cost of the…

A: On the occasion of disposal/exchange/sale of an asset, the net income of the entity is impacted by…

Q: Define the term the depreciable life of the asset?

A: Depreciation  is an accounting process through which allocation of an asset’s cost during its useful…

Q: Explain Amortize Goodwill? Give an example?

A: Amortize Goodwill: Goodwill is an intangible asset amortization of goodwill means a reduction in the…

Q: What is intangible assets, and what is goodwill? definition?

A: Assets are the resources that are owned by the entity for using them in future and to generate…