On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000 when its’ carrying value in Liala Ltd book was $600000 (costs $900000, accumulated depreciation $300000). This plant has a remaining useful life of five (5) years form the date of sale. The group measures its property plants and equipment using a costs model. Tax rate is 30 percent. Required: Pass the necessary entries on 30 June 2017 and 30 June 2018 to eliminate the intra-group transfer of equipment.

Q: On 1 July 2019 Manila Ltd sold an item of plant to Tokyo Ltd for $600,000 when its carrying value in…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: XYZ, a manufacturing company, purchases a property for Ghs1m on 1 January 2016 for its investment…

A: Using fair value method, the investment property is remeasure at the end of accounting period. Using…

Q: On 1 July 2016, Liala ltd sold an item of plant to Jordan Ltd Ltd for $150,000 when its carrying…

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

Q: On 1 July 2016 Laila Ltd sold an item of plant to Jordan Ltd for $450000 when its' carrying value in…

A: Intragroup transfer of the asset is the transfer of asset within a group of companies for the…

Q: Calculate the company's taxable profit and hence its tax payable for 2017. (ii) Determine the…

A: First of all, the timing difference need to be calculated as follows: Machine A/c base Tax base…

Q: On 1 July 2016, Liala Itd sold an item of plant to Jordan Ltd Ltd for $150,000 when its carrying…

A: Intera-group transfer transaction occurs when there is a sale or purchase of assets or goods between…

Q: Rk Co purchased a machine on 1st November 2020 at the cost of $110,000 (inclusive of GST) and…

A: As per Income tax law, depreciation on fixed cost is allowed as deduction from business income.…

Q: On 1 July 2016, Liala Ltd sold an item of plant to Jordan Ltd Ltd for $150,000 when its carrying…

A: Amount unrealized loss = Sales value of assets - carrying value of the assets = $150,000 - $200,000…

Q: Quer Company purchased two machines for P250,000 each on January 2, 2020. The machines were put into…

A: Expense:- Expense is the use of an asset or service to generate revenue. Expense is the reduction in…

Q: Hotroad LLC acquired a new asphalt mixing plant for $500,000 on 1st of January 2016. The…

A: Depreciation is referred to as an amount which is charged by the business on its tangible…

Q: On January 3, 2018, Honest company acquired an item of property, plant and equipment at a cost of…

A: Asset will be reclassified as held for sale will be valued at lower of following 1) carrying value…

Q: Lehman Corporation purchased a machine on January 2, 2017, for $4,000,000. The machine has an…

A: The correct answer is option a, that is, $144,000.

Q: Tiger Ltd purchased a machine on 1 July 2017 at the cost of $640,000. The machine is expected to…

A: Depreciation is the reduction in the value of asset due to obsolesce, wear and tear or usage.…

Q: Sheffield Corp., which has a calendar year accounting period, purchased a new machine for $90000 on…

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

Q: Pass the necessary entries on 30 June 2017 and 30 June 2018 to eliminate the intra-group transfer of…

A: Corporate accounting:   Branch of accounting that deals with the preparation of the financial…

Q: On January 2, 2017, RM Company purchased equipment costing P1,500,000.  The estimated useful life of…

A: Depreciation per annum of old machinery = (P1500000-P50000)/8. = P181250 per annum Depreciation for…

Q: On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000 when its’ carrying value in…

A: The transactions are journalized to eliminate intra-entity transfer of equipment.

Q: On 30 June 2020, James Ltd acquired a machine for $200 500 cash, with an expected useful life of ten…

A: Fair Value Valuation of Non Current Assets While adopting the fair value valuation it can't measure…

Q: Calculate the equipment total cost at acquisition. The equipment was sold on December 31, 2023 for…

A: According to IAS 16 ( Property, Plant and Equipment ) any items of fixed asset can be capitalized if…

Q: On January 1, 2018, Bie Corp. purchased a new building at a cost of P3 million. Depreciation was…

A: Revaluation Surplus To Calculating the Revaluation surplus first to calculate the Carrying amount of…

Q: Bennet Co. bought a trademark from Bonnet, Inc. on January 2, 2018, for $1,200,000. An independent…

A: Annual Amortization = Assets Cost / Life of the Assets Cost of Trademarks = $1,200,000 Life of the…

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

Q: On January 2, 2018, Lem Corp. bought machinery under a contract that required a down payment of…

A: Depreciation is the method of accounting which is used for allocating the cost of physical or…

Q: CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying $1.000.000,…

A: The cost of the machine would be the price that would be paid on a cash basis immediately upon…

Q: Pass the necessary entries on 30 June 2017 and 30 June 2018 to eliminate the intra-group transfer of…

A: Introduction: Depreciation: A fixed charged on the value of asset that reduces its value is known as…

Q: On January 1, 2016, D Company acquires for $100,000 a new machine with an estimated useful life of…

A: The correct answer is Option (c).

Q: On 1 July 2019, Briarly Pty Ltd purchased a new printing machine for $152,000. The company expected…

A: Depreciation is the allocation of cost of asset over the useful life of the asset. It can be charged…

Q: On January 1, 2016, LLC Corporation purchased a building and equipment that have the following…

A: The declining balance method is one of the two accelerated depreciation methods, and it uses a…

Q: On December 1, 2021, Malaluan Corporation decided to dispose of an item of plant that is carried in…

A: The question is related to Impairment of Assets. As per Impairment of Assets,  Impairment Loss is…

Q: Pass the necessary entries on 30 June 2017 and 30 June 2018 to eliminate the intra-group transfer of…

A: Corporate accounting:   Branch of accounting that deals with the preparation of the financial…

Q: Prepare the necessary journal entries in 30 June 2017 to eliminate the intra-group transfer of…

A: Intra-group transactions refer to the transactions taking place within the group of entities which…

Q: On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $350000 when its’ carrying value in…

A: Intra-group transactions refer to the financial and commercial transactions between two companies of…

Q: ABC Company has an equipment acquired on January 1, 2018 at a cost of P2,200,000 with estimated…

A: Given, 1/1/18 - purchased equipment worth P2200000. residual value = P200000. estimated useful life…

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: On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000 when its’ carrying value in…

A: Amount unrealized loss = Sales value of assets - carrying value of the assets = $150,000 - $200,000…

Q: Required: Pass the necessary entries on 30 June 2017 and 30 June 2018 to eliminate the intra-group…

A: Journal Entry: It is prepared to record the financial and non financial transaction of the business…

Q: b) On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000 when its’ carrying value…

A: Required journal entries are given below:

Q: On July 15, 2018, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for…

A: Gain (Loss) on sale of patent =  Sale value - Book value = $750,000 - $120,000 = $630,000 Gain…

Q: Jaguar Ltd purchased a machine on 1 July 2016 at the cost of $640,000. The machine is expected to…

A: Deferred tax can be defined as the basis of allocating tax charges to particular accounting periods.…

Q: Pass the necessary entries on 30 June 2017 and 30 June 2018 to eliminate the intra-group transfer of…

A: Journal entries are the part of accounting cycle which records the business transaction initially…

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: On January 1, 2020, A Company decided to sell one of its machineries with a cost of P3,400,000 and…

A: When the assets are categorised as held for sale, the net realisable value is considered for…

Q: As at 31 December 2020, Lambda Ltd’s property in its statement of financial position was: Property…

A:

Q: At the beginning of 2016, Robotics Inc. acquired a manufacturing facility for $13.2 million. $10.2…

A: Working Note 1: Compute the depreciation under the straight-line method for the year 2016.

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.