Help me answer this thank you 4 What amount should be recognized as accounts payableon February 15, 2022?L 2700,000b. 3,100,000e 8,500,000d 3,000,000PE877 Problem 12-18 (IAA)On November 15, 2021, Diamond Company entered into acommitment to purchase 10,000 ounces of gold on February15, 2022 at a price of P310 per ounce.On December 31, 2021, the market price of gold is P270 perounce. On February 15, 2022, the price of gold is P300 perounce.1. What amount should be recognized as loss on purchasecommitment on December 31, 2021?a 400,000b. 100,000c. 300,000d.2. What amount should be recognized as gain on purchasecommitment on February l5, 2022?400,000b. 300,000100,000P.a.C.3. What amount should be recorded as purchases onFebruary 15, 2022?a 3,000,000b. 3,100,000c. 2,700,000d. 3,500,000PagO

Given information, Purchases = 10,000 × P310 =P3,100,000 Market price of gold on December 31, 2021…

Answered: On November 15, 2021, Diamond Company…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 29CE

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On November 15, 2020, Diamond Company entered into a commitment to purchase 10,000 ounces of gold on February 15, 2021 at a price of P310 per ounce. On December 31, 2020, the market price of gold is P270 per share ounce. On February 15, 2021, the price of gold is P300 per ounce. 1. What is the loss on purchase commitment to be recognized on December 31, 2020? a. 400,000 b. 100,000 c. 300,000 d. 0 2. What is the gain on purchase commitment to be recognized on February 15, 2021? a. 400,000 b. 300,000 c. 100,000 d. 0 3. What amount should be debited to purchases on February 15, 2021? a. 3,000,000 b. 3,100,000 c. 2,700,000 d. 3,500,000 4. What amount should be recognized as accounts payable on February 15, 2021? a. 2,700,000 b. 3,100,000 c. 3,500,000 d. 3,000,000
Exercise 14-17 Presented below are two independent situations:(a) On January 1, 2020, Wildhorse Inc. purchased land that had an assessed value of $322,000 at the time of purchase. A $517,000, zero-interest-bearing note due January 1, 2023, was given in exchange. There was no established exchange price for the land, nor a ready fair value for the note. The interest rate charged on a note of this type is 12%.Determine at what amount the land should be recorded at January 1, 2020, and the interest expense to be reported in 2020 related to this transaction. (Round answers to 0 decimal places, e.g. 38,548.) Land to be recorded at January 1, 2020 $ Interest expense to be reported $ (b) On January 1, 2020, Sheffield Furniture borrowed $6,100,000 (face value) from Sinise Co., a major customer, through a zero-interest-bearing note due in 4 years. Because the note was zero-interest-bearing, Sheffield Furniture agreed to sell furniture to this customer at lower than market…
Exercise 14-17 Presented below are two independent situations:(a) On January 1, 2020, Sage Inc. purchased land that had an assessed value of $349,000 at the time of purchase. A $571,000, zero-interest-bearing note due January 1, 2023, was given in exchange. There was no established exchange price for the land, nor a ready fair value for the note. The interest rate charged on a note of this type is 12%.Determine at what amount the land should be recorded at January 1, 2020, and the interest expense to be reported in 2020 related to this transaction. (Round answers to 0 decimal places, e.g. 38,548.) Land to be recorded at January 1, 2020 $ Interest expense to be reported $ (b) On January 1, 2020, Pronghorn Furniture borrowed $4,500,000 (face value) from Sinise Co., a major customer, through a zero-interest-bearing note due in 4 years. Because the note was zero-interest-bearing, Pronghorn Furniture agreed to sell furniture to this customer at lower than market…
On November 15, 2020, Diamond Company entered into a commitment to purchase 10,000 ounces of gold on February 15, 2021 at a price of P310 per ounce. On December 31, 2020, the market price of gold is P270 per share ounce. On February 15, 2021, the price of gold is P300 per ounce. 1. What amount should be recognized as accounts payable on February 15, 2021? a. 2,700,000 b. 3,100,000 c. 3,500,000 d. 3,000,000
Problem 10-29 (IFRS)On January 1, 2020, Yemen Company leased an equipment for 6 years fromanother entity. The entity recorded the asset at P 4, 800, 000 which includeda purchase option of P 100, 000.At the commencement date, the lessee is reasonably certain to exercise thepurchase option. The equipment had an eight-year useful life and a fair value of P 300, 000 atthe end of the useful life.On January 1, 2026, the entity did not exercise the purchase option.What is the loss on finance lease to be recognized by Yemen Company for2026?a. 1, 325, 000b. 1, 425, 000c. 200, 000d. 0
62.On January 01, 2022, TGIF Company sold equipment costing P10,000,000 with accumulated depreciation of P5,500,000 in exchange for a P6,000,000 noninterest bearing note due in equal annual installments of P2,000,000 every December 31, 2022. There was no established exchange price for the equipment and the note had no ready market. The prevailing rate of interest for a note of this type at January 01, 2022 was 10%. What is the carrying amount of the note on December 31, 2022? (Round off the present value factors to 4 decimal places)
57. On April 1, 2028, A Company issued a P 9,000,000 non-interest-bearing note due March 31, 2031, for a piece of land with a cash price of P 6,949,800. Effective interest rate is 9%. Determine the interest expense for the year ended December 31, 2028 Round off final answer to the nearest peso.
24 On January 1, 2021, BB Company sold an equipment costing P10,000,000 and accumulated depreciation of P2,500,000. BB received a P1,000,000 cash and a 10%, 7-year, P7,000,000 note receivable every December 31 in equal annual installment of P1,000,000 plus interest starting December 31, 2021. Interest effective on this note when received is at 8%. Statement 1: The amount of gain (loss) on sale should BB recognized on January 1, 2021 is P948,407. Statement 2: The interest income in BB’s statement of comprehensive income for the period ending December 31, 2021 is P595,873. Group of answer choices Both statements are true Only statement 2 is true Both statements are false Only statement 1 is true
Problem 14-08 On December 31, 2020, Buffalo Company acquired a computer from Plato Corporation by issuing a $650,000 zero-interest-bearing note, payable in full on December 31, 2024. Buffalo Company’s credit rating permits it to borrow funds from its several lines of credit at 12%. The computer is expected to have a 5-year life and a $76,000 salvage value. Prepare the journal entry for the purchase on December 31, 2020.
8. On January 1, 2018, Stefan company purchased a mining site that will have to be restored to certain specifications when the mining production ceases. The cost of the mining site is 6,000,000 and the restoration cost is expected to be 1,500,000. It is estimated that the mine will continue in operation for 10 years. The appropriate discount rate is 8%. The present value of 1 at 8% for 10 periods is 0.4632. On December 31, 2027, the entity contracted with another entity for the restoration of the mining site in accordance with specifications at a cost of 1,350,000. How much is the decommissioning liability on January 1, 2018?
Exhibit 13-03On January 1, 2017, Train, Inc. accepted an $80,000, non-interest bearing 3 year note in exchange for equipment it sold to Steam Company. Train originally purchased the equipment for $125,000, and it had a book value of $75,000 on the date of the sale. The note was non-interest-bearing. An assumed 11% interest rate is implicit in the agreement. Actual information for 11%, three periods, follows: Present value of 1 0.73119 Present value of annuity of 1 2.44371 Refer to Exhibit 13-03. What amount should Train record for the discount on Notes Receivable? $21,505 $58,495 $0 $16,505
Problem # 1 (30): Given: On Sep 1, 2017 General Assembly (GA) purchased for $980,000 an ANSONIA 7300 wide-corridor stacking modulator with the expectation that its economic life would be exhausted at 2024 12 31 and that the unit’s salvage value would be $320,000. On 2020 11 01 GA exchanged the equipment for a 4-year, zero-coupon note with a face value of $900,000. GA recognized a loss of $16,100 on the transaction. GA uses SLN for depreciation and prorating for partial periods. Required: Book the 12/31/2020 interest accrual for the note.

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