On January 1, 2020, Anderson Inc. has a balance in its Class 53 UCC of $440000. During 2020, assets with a capital cost of $160000 are added to the Class. There are no disposals during the year. Determine the maximum Class 53 CCA for 2020. Round to the nearest dollar. Do NOT write commas, dollar signs, or decimals in your response. Your Answer:

On January 1, 2020, Anderson Inc. has a balance in its Class 53 UCC of $440000. During 2020, assets with a capital cost of $160000 are added to the Class. There are no disposals during the year. Determine the maximum Class 53 CCA for 2020. Round to the nearest dollar. Do NOT write commas, dollar signs, or decimals in your response. Your Answer:

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6P

See similar textbooks

Similar questions

During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the following three situations: 1. Machine A was purchased for 50,000 on January 1, 2014. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 25,000. The estimated residual value remains at 5,000, but the service life is now estimated to be 1 year longer than estimated originally. 2. Machine B was purchased for 40,000 on January 1, 2017. It had an estimated residual value of 5,000 and an estimated service life of 10 years. it has been depreciated under the double-declining-balance method for 2 years. Now, at the beginning of the third year, Ryel has decided to change to the straight-line method. 3. Machine C was purchased for 20,000 on January 1, 2018, Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is 2,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry necessary for each situation to record depreciation expense for 2019.
Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense at December 31, 2020, if the double-declining-balance method were used? a. $187,200 b. $192,000 c. $195,200 d. $312, 000
Gray Companys financial statements showed income before income taxes of 4,030,000 for the year ended December 31, 2020, and 3,330,000 for the year ended December 31, 2019. Additional information is as follows: Capital expenditures were 2,800,000 in 2020 and 4,000,000 in 2019. Included in the 2020 capital expenditures is equipment purchased for 1,000,000 on January 1, 2020, with no salvage value. Gray used straight-line depreciation based on a 10-year estimated life in its financial statements. As a result of additional information now available, it is estimated that this equipment should have only an 8-year life. Gray made an error in its financial statements that should be regarded as material. A payment of 180,000 was made in January 2020 and charged to expense in 2020 for insurance premiums applicable to policies commencing and expiring in 2019. No liability had been recorded for this item at December 31, 2019. The allowance for doubtful accounts reflected in Grays financial statements was 7,000 at December 31, 2020, and 97,000 at December 31, 2019. During 2020, 90,000 of uncollectible receivables were written off against the allowance for doubtful accounts. In 2019, the provision for doubtful accounts was based on a percentage of net sales. The 2020 provision has not yet been recorded. Net sales were 58,500,000 for the year ended December 31, 2020, and 49,230,000 for the year ended December 31, 2019. Based on the latest available facts, the 2020 provision for doubtful accounts is estimated to be 0.2% of net sales. A review of the estimated warranty liability at December 31, 2020, which is included in other liabilities in Grays financial statements, has disclosed that this estimated liability should be increased 170,000. Gray has two large blast furnaces that it uses in its manufacturing process. These furnaces must be periodically relined. Furnace A was relined in January 2014 at a cost of 230,000 and in January 2019 at a cost of 280,000. Furnace B was relined for the first time in January 2020 at a cost of 300,000. In Grays financial statements, these costs were expensed as incurred. Since a relining will last for 5 years, Grays management feels it would be preferable to capitalize and depreciate the cost of the relining over the productive life of the relining. Gray has decided to nuke a change in accounting principle from expensing relining costs as incurred to capitalizing them and depreciating them over their productive life on a straight-line basis with a full years depreciation in the year of relining. This change meets the requirements for a change in accounting principle under GAAP. Required: 1. For the years ended December 31, 2020 and 2019, prepare a worksheet reconciling income before income taxes as given previously with income before income taxes as adjusted for the preceding additional information. Show supporting computations in good form. Ignore income taxes and deferred tax considerations in your answer. The worksheet should have the following format: 2. As of January 1, 2020, compute the retrospective adjustment of retained earnings for the change in accounting principle from expensing to capitalizing relining costs. Ignore income taxes and deferred tax considerations in your answer.
At the beginning of 2020, Quest Inc. has two assets in Class 10. The cost of each asset was $72,000 and the Class 10 UCC balance was $56,472. On June 30, 2020, both of these assets are sold for a total of $41,500. What is the effect of the disposition on the Company's 2020 net business income? In addition, determine the January 1, 2021 UCC balanc
Our company shows, among other things, after the poster at the beginning and end of 2020 in tsek:31 Dec 2020 01 Jan 2020Fixed assets 5,000 4000Current assets 1,500 1,500Long-term liabilities 2000 2500Current liabilities 1400 1500What is the company's result for 2020? Assume that the owners did not deposit or withdraw any capital duringyear.
On January 1, 2020, Karakaraka Co. started construction of a new office building on January 1, 2020, and moved into the finished building on July 1, 2021. Of the P25,000 total cost of the building, P20,000 was incurred in 2020 evenly throughout the year. The entity’s incremental borrowing rate was 12% throughout 2020, and the total amount of interest incurred was P1,020,000. What amount should be reported as capitalized interest on December 31, 2020?
The Slow company has started the construction of an asset on September 1, 2019and finished it on November 1, 2020. The weighted average expenditure ascalculated at the end of the construction in 2020 was: $725,456. In 2020, thecomp had the following outstanding indirect debts:DebtOne-year loan payable taken out on March 31, 2019Two-year note payable Faken out on June 1, 2020Amount$67,000$120,000Annual rate5%7%Assuming there is no direct debt related to this construction, the interest that will becapitalized on indirect debt in 2020 is (calculate ratios to 2 decimal places):a) $47,980b) $45,130Oc) $7,133d) $5,737
During 2019, Bing Company constructed its own equipment costing P5,000,000. The weighted average accumulated expenditure on these assets during 2019 was P2,500,000. To help finance the construction, P1, 800,000 was borrowed at 10% on January 1, 2019, and funds not needed for construction were temporarily invested in short-term securities, yielding P45,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a P2,500,000, 10-year, 9% notes payable dated January 1, 2019. What is the amount of interest that should be capitalized by Bing during 2019?
The following information is available for Victoria Inc. for calendar 2020: 1. Instalment sales recorded on the books was $ 100,000. Collections of instalment receivables was $ 50,000. Installment sales are taxed when cash is received. 2. Golf club dues were $ 3,800. 3. Machinery was acquired in January 2020 for $ 300,000. Victoria uses straight-line depreciation over a ten-year life (no residual value). For tax purposes, Victoria uses CCA at 14% for 2020 after considering the half-year rule. 4. Dividends received from a Canadian corporation were $ 4,000. 5. The estimated warranty liability related to 2020 sales was $ 19,600. Warranty repair costs paid during 2020 were $ 13,600. The remainder will be paid in 2021. 6. Pre-tax accounting income is $ 250,000. The enacted income tax rate is 25%. Required: ( a ) Calculate taxable income for 2020. Calculate current income taxes payable for 2020. Calculate the balance of any deferred income taxes asset and deferred income tax liability at…
At December 31, 2019, Afro Corp. reported P1,750,000 of appropriated retained earnings for the construction of a new office building, which was completed in 2020 at a total cost of P1,500,000. In 2020, Afro appropriated P1,200,000 of retained earnings for the construction of a new plant. Also, P2,000,000 of cash was restricted for the retirement of bonds due in 2022. In its 2020 balance sheet, Afro should report what amount of appropriated retained earnings? a. P3,200,000 b. P1,200,000 c. P1,450,000 d. P2,950,000
On January 1, 2020 there is a P300,000 balance in Construction in progress-building account. Included in that balance is P60,000 of interest capitalized in the first two years of the construction. Construction expenditures during the year 2020 were P800,000 which were incurred evenly throughout the entire year. The company has had over P3,000,000 in interest-bearing debt outstanding in 2020, at a weighted average rate of 9%. How much interest is capitalized in 2020?