In December 20x8, the Ayala Co. purchased land for P300,000. The land was held until December 20x9, when it was sold for P400,000. The historical cost/constant peso statement of profit or loss for the year ended December 31, 20x9, should include how much gain or loss on this sale? *

Q: What is the amount of the gain or loss on this transaction?

A: Depreciation - This is the Method to Expense for using the asset during the period for the business…

Q: On January 2, 2018, Randy Corporation acquired a track of land that is to be sold in the ordinary…

A: GIVEN   On January 2, 2018, Randy Corporation acquired a track of land that is to be sold in the…

Q: Perlman Land Development, Inc. purchased land for$70,000 and spent $30,000 developing it. It then…

A:

Q: At the beginning of the current year, Dianne company purchased a tract of land for P6,000,000.  The…

A: Total Sales:- It is the value of those goods which are ready for sale in the market including profit…

Q: On April 1st, Leo Smith paid $310,000 for aresidential rental property. This purchase price…

A: Definition: Modified accelerated cost recovery system (MACRS): This is a depreciation method…

Q: Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse…

A: Appraised Value: It is an evaluation of a property's value (Eg:Land, Warehouse) based on a given…

Q: On January 1, 2013, Ameen Company purchased a building for $36 million. Ameen uses straight-line…

A: Deferred tax:   Deferred taxes are taxes that will be paid in future period.   Deferred tax is a…

Q: On February 3, Boulder Repair Service extended an offer of $566,000 for land that had been priced…

A: Given Information: Sale price of Land: $629,000 Boulder Repair service accepted the seller’s…

Q: CPL a manufacturing company, purchases a property for $1M on January 20x1 for its investment…

A: A. As per IAS 16, Property, plant and Equipment  In case Property is presented at cost model then it…

Q: During the current year, XYZ Corporation purchased land for $5,000 and sold a piece of factory…

A: Workings: Net cash flows = cash Inflow - cash outflow.

Q: On December 31, Strike Company sold one of its batting cages for $20,000.  The equipment had an…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Piper’s Pizza sold baking equipment for $25,000. The equipment was originally purchased for $72,000,…

A: Given information is: Sale Revenue of Equipment = $25,000 Original cost of Equipment = $72,000…

Q: Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported…

A: The concept under which the acquisition of the assets is recorded at the amount paid for it can be…

Q: Cancer Co. owned a track of land costing P1,600,000 and sold the land for P2,000,000. The entity…

A: Interest for first year = Face value of notes x rate of interest x no. of years = P2,000,000 x 6% x…

Q: Puerto Princesa Company sold its parking lot for P2,000,000. The lot has a zonal value of P2,500,000…

A: solution: given : sale price            =P2,000,000 zonal value         =P2,500,000 appraisal value…

Q: On June 7, 2006, Hawk Corporation sold a tract of land for P70,000 that resulted in a P30,000 gain…

A: The gain arises when the selling price is greater than the purchase price of the asset. The revenue…

Q: On January 1, 2018, Prairie Enterprises purchased a parcel of land for $14,000 cash. At the time of…

A: 1 1.1 Show the effect for sale of land at $15,540 on accounting equation as shown below:     1.2…

Q: Hilo Company has land that cost $350,000 but now has a fair value of $500,000. Hilo Company decides…

A: Revaluation model: Under this model, assets are carried at fair value on the date of revaluation, as…

Q: Red Corp purchased land for $600,000 some years ago. Fair value was $800,000 at the beginning of…

A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…

Q: Lauren Ltd bought some land on 1 January 20X4 for GHS 500,000. On 31 December 20X5, this land was…

A: Land is a long term assets for almost all business and it can be revalued at fair value but the…

Q: On December 31, Strike Company sold one of its batting cages for $21,135. The equipment had an…

A: SOLUTION-                                            WORKING NOTE- CALCULATION OF BOOK VALUE OF…

Q: Capstone Consulting Services acquired land 5 years ago for $200,000. Capstone recently signed an…

A: Formula: Assets=Liabilities+Equity

Q: Lauren Ltd bought some land on 1 January 20X4 for GHS 500,000. On 31 December 20X5, this land was…

A: Recoverable amount = Higher amount of [Fair value less costs to sell or Value in use].

Q: A company purchased a piece of equipment for $155,000 and sells it after 3 years. The equipment is…

A: Modified accelerated cost recovery system (MACRS) is a depreciation method permitted by the IRS that…

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: On June 25, McCade Repair Service extended an offer of $109,000 for land that had been priced for…

A: Historical cost refers to the original cost of the item or fixed asset

Q: GGG Company purchased a tract of land for P12,000,000. The entity incurred additional cost of…

A: Cost allocation is based on the total sales value. The relative share can be calculated by dividing…

Q: Nona Co. purchased land worth P20,000,000 on January 1, 2021. The company uses the revaluation model…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: Tullahoma Company purchased equipment for $27,500. It depreciated the equipment over a fiveyear life…

A: Depreciation rate  under double declining balance  Method  = 2/useful life  =2/5 0.4 =40%

Q: On July 1, 2020, E. Cristobal Corp. acquired a service vehicle or P200,000. It is to be depreciated…

A: The initial cost of the asset is capitalised in the books rather than expensing it in the period of…

Q: Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse…

A: Total appraised value = appraised value of warehouse + appraised value of land = $94,500 + $138,000…

Q: On 15 January 2020, Dell & Co. sold land that cost P90,000 for P120,000.  The balance of the land…

A: Cash flow from investing activities: It is a section of the cash flow statement that shows the cash…

Q: On May 7, 2021, Jimin Corporation sold a tract of land for P70,000 that resulted in a P30,000 gain…

A: The solution for the above mentioned question is given in the following steps for your reference.

Q: A company purchased land for $76,000 cash. Commissions of $5,000, property taxes of $5,500, and…

A: The question is based on the concept of Business transaction analysis.

Q: On 1 January 20X8 Davidoff Co decided to revalue its land for the first time. A qualified property…

A: In the context of the given question, we need to prepare extracts of the financial statements.…

Q: DAYTO Corporation owned a tract of land costing P800,000 which it sold for P1,000,000. The entity…

A: For sale of asset the journal entry will be debit to note receivable and credit to asset. Any profit…

Q: At what value should the land be recorded in Carpet Barn Company's records?

A: A historical cost is a measure of value used in accounting in which the value of an asset on the…

Q: On January 1, 2021, Wilkes Company purchased a used delivery truck for $28,000, paying cash. On…

A: Definition:   Journal entry: Journal entry is a set of economic events which can be measured in…

Q: On January 1, 2022, Estrime Company purchases an investment property at a cost of P50,000,000…

A: Solution Investment property is the property which is purchase by a person with the intention to…

Q: gain or loss from this sale

A: Annual depreciation under straight line method = (Cost - Residual value)/Estimated life in years…

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: In December 20x8, the Aliz Co. purchased land for P300,000. The land was held until December 20x9,…

A: Profit on Sale of Asset: When an asset is sold for more than its carrying value, a gain on the sale…

Q: During the year, Tulip had the following transactions:   Long-term loss on the sale of business use…

A: The IRS defines AGI as "gross income minus adjustments to income." Thus, AGI will depend on the…

Q: . How much is the gain on leaşeback recorded on January 1, 2021?* For numbers 3 to 5, please refer…

A: The question is related to Accounting for Lease. In case of leaseback transaction the gain is the…

Q: NOS Corp. purchased equipment for $180,000. They sold the equipment at the end of three years for…

A: Depreciation is a way to reduce the cost of asset over a period of time due to usage, wear &…

Q: During the current year, Hitchcock Developers disposed of plant assets in the following…

A: Disposal of asset: Disposal of asset is a non-recurring transaction, which record the sale of asset.…

Q: On February 3, Gallatin Repair Service extended an offer of $152,000 for land that had been priced…

A: Introduction: The land is the fixed asset for the company which does not attach any amount of…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is