if accounting records were adjusted corresponding to the fair market value amount of the business? Justify your answer.

Q: In year 0, Longworth Partnership purchased a machine for $64,750 to use in its business. In year 3,…

A: A capital gain is generated because of the sale of both short-term and long-term capital assets.…

Q: During the year 2020, Mr. Ahmed purchased goods for $ 500, 000 and sold 3/5th of the goods for $…

A: Net profit calculated by Mr. Ahmed is as per Matching concept.    Matching concept: As per matching…

Q: In year 0, Javens Inc. sold machinery with a fair market value of $580,000 to Chris. The machinery’s…

A: Step 1: Compute the realized gain/ (loss) as follows:

Q: Mr. Antonio disposed his principal residence for P2M and immediately acquired a new one for P1.8M.…

A: The capital gain tax are imposed on the capital gain incurred during the year, the capital gains…

Q: Cool Ethan, an entrepreneur, was involved in an accident and was able to claim the following…

A: When an employee suffers any casualty or accident in the workplace, the employer should pay…

Q: ABC Company bought Patent A for P400,000 and Patent B for P600,000. ABC Company paid acquisition…

A: As per the guideline we can provide the answer of 1 question . answer for remaining question post…

Q: X, an architect, owes Y, a businessman, P250,000. The latter engaged the services of the former to…

A: Revenue is the amount that a company earns from normal activities conducted by the business for…

Q: Barney exchanges an office building with an adjusted basis of $280,000 and a fair market value of…

A: The recognized gain or loss value of the asset is determined by comparing its carrying value with…

Q: What accounting assumption, principle, or constraint would Target Corporation use in each of the…

A: A )  Target was involved in litigation over the last year. This litigation is disclosed in the…

Q: rre acquired his business for P10,000.The fair market value of the business is P11,000.Will it be…

A: Revaluation- Revaluation states the value of assets and liabilities on the basis of market value of…

Q: Land with an assessed value of $750,000 for property tax purposes is acquired by a business for…

A: The cost principle is one of the accounting principles. It generally means that all required assets,…

Q: Garcia disposed of his principal residence for P2,000,000 and immediately acquired a new one for…

A: In Phillipines capital gain tax is charged at 6% on the sale value or…

Q: In year 0, Javens Inc. sold machinery with a fair market value of $580,000 to Chris. The machinery’s…

A: Step 1 $386,720 is the adjusted basis which is obtained by subtracting the accumulated depreciation…

Q: Glenn carries on a business and is registered for GST. He made a taxable supply of goods in the…

A: Taxable supply is broadly defined to mean the supply of goods and / or services that are taxable…

Q: Mr. XYZ is negotiating to buy a parcel of property for his business. The seller of the property is…

A: The cost concept is a component of the GAPP in accounting. When a new asset is acquired, it should…

Q: In year 0, Longworth Partnership purchased a machine for $54,500 to use in its business. In year 3,…

A: A ) Gain or loss long worth will recognize on the sale:

Q: In X8, Erin had the following capital gains (losses) from the sale of her investments: $2,500 LTCG,…

A: working note: The Amount of Erin capital gains and (losses) will be as  1) $2,500 LTCG + ($9,500)…

Q: Mr. Reyes disposed his principal residence for P2,000,000 and immediately acquired a new one for…

A: The capital gain tax are imposed on the capital gain incurred during the year, the capital gains…

Q: Case: Mr. ABC acquired his business for P3 million. The fair market value of the business is P5…

A: Historical cost principle is one of the accounting principle used in business. This says that all…

Q: . JBC Company, a car rental company, acquires vehicles with the intention of holding them as rental…

A: Fixed assets means the asset which is used by company for many years to come for the purpose of…

Q: In year 0, Longworth Partnership purchased a machine for $58,250 to use in its business. In year 3,…

A: Given data, Machinery purchased=$58,250 Sold the Machine for $37,900 Depreciation on machine up to…

Q: In year O, Longworth Partnership purchased a machine for $58,250 to use in its business. In year 3,…

A: The question is based on the concept of Financial Accounting.

Q: a. Land with an assessed value of $750,000 for property tax purposes is acquired by a business for…

A: (a)The value of land should not be changed in the business records. The value of land after 10 years…

Q: Alpha sold machinery, which it used in its business to Beta, a related entity for $40,400. Beta used…

A: Given information is: Sale value of machinery = $40,400 Cost of machinery = $49,600 Depreciation…

Q: Patrick owns a building used in his business with an adjusted basis of $300,000 and a $875,000 FMV.…

A: If the future cash flows is not expected to change subsequently right after the exchange of asset,…

Q: In year 0, Longworth Partnership purchased a machine for $55,500 to use in its business. In year 3,…

A: Step 1 The book value on the date of sale of $27,300 is obtained by subtracting the depreciation of…

Q: During the year, JK Corporation has gross sales of P20,000,000 and operating expenses of P2,000,000,…

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

Q: June 1, 2022, AZ invited MG to join him in his business. MG agreed provided that AZ will adjust the…

A: This is partnership question, where one partner is have 45℅ share, and another 55℅. We can calculate…

Q: During the current year, Haze Company won a litigation award for P1,500,000 which was tripled to…

A: The accounting standard is: 1. Revenue recognition 2. Event occurred after the balance sheet date…

Q: a) Land with an assessed value of $750,000 for property tax purposes is acquired by a business for…

A: Assessed value is the value assigned to the property for the purpose of taxation, a property is…

Q: Van Industries and Frat Corporation trade land in 2021. Van has an adjusted basis of $740,000 in…

A: Realized value  were the value that is adjustable . For Frat $740000 For Van $ 660000 Recognized…

Q: Assuming that the land acquired in (a) was sold for $2;125,000, how would the various elements of…

A: The cost principle is one of the accounting principles. It generally means that all required assets,…

Q: 38,800 and fair market value $105,840, to a new business in which he is an Determine Roscoe's…

A:

Q: a. If Northeast Productions Company is a sole proprietorship owned by Ms. Smith,: (Select the best…

A: In case of proprietorship, A sole proprietor will be responsible for all the costs and debts of…

Q: Arlington LLC exchanged land used in its business for some new land. Arlington orginally purchased…

A: Land indicates a part of fixed resources held by the entity which does not show any change in its…

Q: Heron Company purchases commercial realty on November 13, 2002, for $650,000. Straight-line…

A: Answer: Cost of Asset = $650,000  Depreciation  = $287,492  Book Value  = $362,508  Asset Sold for =…

Q: CASE B Mr. RVC acquired his business for ₱3,000,000. The fair market value of the business is…

A: fair value is the actual value of an asset. it is one of the most important method used in the…

Q: n X8, Erin had the following capital gains (losses) from the sale of her investments: $2,000 LTCG,…

A: long term capital gain or loss , short term capital gain or loss are determined by holding period at…

Q: Gwen sold some equipment for $10,250 in cash, $1,000 of marketable securities, the buyer assumption…

A: Capital gain:   It is the profit made on the sale of a capital asset. Short-term capital gain and…

Q: one for P1,800,000. The old residence cost Mr. Antonio P1,000,000 and had a fair value of P2,500,000…

A: The capital gain tax are imposed on the capital gain incurred during the year, the capital gains…

Q: A. Land with an assessed value of $750,000 for property tax purposes is acquired by a business for…

A: In Accounting, transactions are written in the books on a historical cost basis i.e. recorded on the…

Q: Ms. Drake sold a business that she had operated as a sole proprietorship for 18 years. On date of…

A: Answer: Particulars Inventory Others Goodwill Total Amount realized 154000 73400 89100 316500…

Q: A, who was a director and secretary of R’s co-operative society, bought land at the price of…

A: Given in the question: Land Price = RM 900,000 Mr. A is the director and secretary of R Co-operative…

Q: As part of a transaction that qualifies for section 351 Charles contributes a building with a Fair…

A: Section 351:   Under this section of IRS, the gain or loss is not recognized when the asset is…

Q: In year 0, Longworth Partnership purchased a machine for $55,500 to use in its business. In year 3,…

A: Compute the amount and character of the gain or loss that Longworth will recognize on the sale:

Q: In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: What is Russell’s realized gain on the transaction? What is Russell’s realized gain in year 0, year…

A: Please see the next two steps.