Pass the necessary entries on 30 June 2017 and 30 June 2018 to eliminate the intra-group transfer of equipment.

Q: The following balances were reported by ABC Co. at December 31, 2020 and 2019: 12/31/20 P2,600,000…

A: Cost of Goods Sold- Cost of goods sold refers to the cost of services and goods which are sold…

Q: ABC Company purchased a machine costing P 10,000,000 on January 1, 2021  with an estimated useful…

A: Here in this question, we are required to calculate income tax payable as of December 31,2025. When…

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 Liala Ltd sold an item of plant to Jordan Ltd for $450000 when its’ carrying value in…

A:

Q: Michael Company purchased 35% of James Company on January 1, 2016 for P11,200,000 when James…

A: Investment in associate company may be reported in the books of the investors using the fair value…

Q: The relevant discounted operating cash flows (cost savings) that should be factored into Tractor…

A: Solution:- Given, On January 1, 2021 Tractor Company will acquire a new asset  Costs = $4,50,000…

Q: On January 1, 2021, Company Ltd. decided to sell one of its processing plants located in New York.…

A: The income statement is prepared by the business organization so as to know how much amount of Gross…

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: Mr. Wonder purchased a machine amounting to P7,000,000 on January 1, 2013 providing the newest kind…

A: On January 1,2013, the Cost of the machine =7,000,000. Depreciation per year =cost of asset-salvage…

Q: DeCento's is analyzing two mutually exclusive machines to determine which one it s machine is…

A: The machine having lower annual cost would be better considering the rate of return required on…

Q: Explain in detail using relevant tax laws and cases whether this amount of $70,000 is deductible for…

A: Tax laws can be defined as the governing laws which helps the companies or the taxpayers to take…

Q: Mr. Wonder purchased a machine amounting to P7,000,000 on January 1, 2013 providing the newest kind…

A: Step 1 Noncurrent assets held for sale are those assets if they are held for immediate sale in a…

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: 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: Mr. Wonder purchased a machine amounting to P7,000,000 on January 1, 2013 providing the newest kind…

A: Depreciation Expense till 30 June 2018-  Depreciation Expense for each year- P(7000000- 500000)/20…

Q: Yellow River Ltd purchased a machine on 1 July 2016 at a cost of $1280,000. The machine is expected…

A: Timing Difference: It is the differences between accounting income and taxable income due to…

Q: On January 1, 2020, Bonita Industries purchased a machine costing $358000. The machine is in the…

A: MACRS (Modified Accelerated Cost Recovery System) is a method of calculating depreciation in which…

Q: Irwin, Inc., constructed a machine at a total cost of $35 million. Construction was completed at the…

A:

Q: McFadden Company owns equipment with a cost of $475,000 and accumulated depreciation of $280,000…

A: Lease is a contract between two parties in which one party provides its asset for use to another…

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 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: ABC Company sells to XYZ, 5 used factory equipment, each of which was acquired at P20,000, 3 years…

A: Loss from sale of equipment is the difference between the receipt from sales and cost less…

Q: Oslo Corporation has a vehicle that cost P850,000 on October 1, 2015. This old vehicle had an…

A: Annual Depreciation=Cost of Vehicle-Residual ValueEstimated Life=850,0000-50,00010=80,000

Q: Mr. Wonder purchased a machine amounting to P7,000,000 on January 1, 2013 providing the newest kind…

A: Gain or loss in the reclassification in 2019 = (Fair value of 2018 - Cost of disposal) - (Fair value…

Q: Mr. Wonder purchased a machine amounting to P7,000,000 on January 1, 2013 providing the newest kind…

A: Given: Mr.Wonder purchased the machine that amounts to P7,000,000 on January 1, 2013 . It includes…

Q: Company H owns a conveyor belt that costs $85,000 with a residual value of $5,000 and a useful life…

A: Cost of conveyor= $85,000 Residual value= $5,000 Useful life= 10 years Sale value of asset= $61,000

Q: McFadden Company owns equipment with a cost of $475,000 and accumulated depreciation of $280,000…

A: The income statement shows the net income or net loss that is calculated by deducting the expenses…

Q: Hardflex Inc. bought a building for production of XYZ product on June 30, 2017 costing P15,000,000…

A: First, the carrying value of the asset as on 31st December 2018 needs to be determined. Book value…

Q: 22 On January 1, 2022, Estrime Company purchases an investment property at a cost of P50,000,000…

A: Investment Property is a form of asset for the business, under which assets are being purchased for…

Q: On this date, the fair value of the machine is P4,900,000 and the cost of disposal is P50,000. How…

A: When an non current asset is classified as held for sale, it shall be measured at lower of Carrying…

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: e A - The cash price of this machine was $38,000. Related expenditures included: sales tax $1,700,…

A: Depreciation Accounting

Q: On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of…

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

Q: In January, 2020, Swifty Corporation purchased a mineral mine for $4800000 with removable ore…

A: The company will use the assets for many years. Since the assets are used for many years in the…

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: On January 1, 2021 Tractor Company will acquire a new asset that costs $450,000 and that is…

A: Time value of money: The time value of money is the idea that the value of money received today will…

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: Mazaya Company has decided to sell one of its old machines on June 30, 2011. The machine was…

A: As per straight line method, the depreciation is computed by dividing the original cost less salvage…

Q: Yokoyama Company owns a machine with a cost of $92,000 and accumulated depreciation of $18,500 that…

A: Differential analysis is a schedule prepared to determine the profit or loss from the alternatives…