If the company realizes at the start of 2021 that the remaining useful life of the 6-year-old building is 20 years, what should beits carrying amount at the end of the year? (Hint: Thecompany usesthe straight-line method of depreciation.) (Round to the nearest centavos) TayabioitiesStatement of Cash FlowsFinancial Statement AnalysisComprehensive ProblemPoco Lo, Co.'s 2020 balance sheet and 2021 common-size income statement follow:Poco Lo, Co.Balance SheetDecember 31, 2020ASSETSCash244,0002,0007,2008.00021,200Marketable SecuritiesAccounts ReceivableInventoriesTotal Current AssetsLand12,000EquipmentAccumulated Depreciation -BuildingAccumulated Depreciation -Total Noncurrent AssetsTotal Assets20,000Equipment3,00070,500- 12,00087.500$ 108,700BuildingLIABILITIES AND STOCKHOLDERS' EQUITY%24Accounts PayableWages PayableTaxes PayableTotal Current Liabilities7,0001.0001,5009.50030,00039,500Bonds PayableTotal LiabilitiesCommon Stock, $10 parAdditional Paid-In CapitalRetained EamingsTotal Stockholders' EquityTotal Liabilities and Stockholders' Equity30,00019,20020.00069.200$4108.700Poco Lo, Co.Common-Size Income StatementFor the Year Ended December 31, 2021Sales (400 Units)Cost of Goods Sold100.00%(28% Fixod)56.25%Gross Profit43.75%Operating ExponsesOperating IncomeGain on Sale of Land(40% Variable)43.35%0.40%1,60%Income Before Income TaxTax Expense (50%)Net Income2.00%1.00%1.00%Additional Information for the Year 2021:Poco Lo, Co. is a merchandiser of single-priced, wooden cabinets and no other products.Based on the horizontal and trend analysis made for accounts balances as of December1,2020, and 2021, the following overall changes were observed:Account NameChangesIncreased by 12.5%Increased to 125%Decreased by 10%Decreased by 6.25%Decreased by 12.5%CashMarketable SecuritiesAccounts ReceivableInventoriesLandEquipmentAccumulated Depreciation - EquipmentBuildingAccumulated Depreciation - BuildingAccounts PayableWagos PayableTaxes PayableBonds PayableRetained EarningsIncreased to 120%Increased by 1/6No ChangeIncreased by 1/6Increased to 110%Increased by 5%Decreased by 2/3No ChangeDecreased by 19.25%Upon inspection of the company's records, 250 common stocks were issued for cash forthe year and the company did not repurchaseany of its common stock within the year.The company did not issue any new bonds nor retired any of the existing bonds during theyear.Aside from the land sold, no other noncurrent assets were disposedof within the year.Pieces of equipment were purchased within the year and no other acquisition was made.Cash Dividends were doclared and paid within the year.Gross Profit for the period is equal to $30,625.Based on the foregoing facts, answer the following questions:

Name: If the company realizes at the start of 2021 that the remaining useful
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Description: If the company realizes at the start of 2021 that the remaining useful life of the 6-year-old building is 20 years, what should beits carrying amount at the end of the year? (Hint: Thecompany usesthe straight-line method of depreciation.) (Round to t

Depreciation is the demunition in the value of an asset on account of…

Answered: If the company realizes at the start of…

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Accounting

If the company realizes at the start of 2021 that the remaining useful life of the 6-year-old building is 20 years, w

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 55PSA

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