Question 1An extract of the Asset Register of Ace Pty Ltd ("Ace") for the 2018 - 2019 Income year isshown as follows:MethodEffective Decline in ClosingValue for AdjustableThis Period ValueAssetOpeningAdjustableValueCostLife1,200 1,200DiminishingValuePrinter3 years|400800Desks3,000 2,4002,600 1,040Prime Cost10 years3002,100AppliancesPrime Cost5 years520520All depreciable assets are 100% for business use and Ace uses a low-value pool for all eligibleassets. The closing value of the low-value pool at 30 June 2019 was $8,000. Ace purchased acamera on 20 Jan 2020 for $840.Advise Ace of the Income Tax consequences arising out of the above information for the 2019- 2020 Income year assuming Ace is not a small business entity.

Tax: Tax refers to a compulsory payment or a contribution to the state revenue, levied by the…

Answered: Question 1 An extract of the Asset…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 24CE

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An extract of the Asset Register of Ace Pty Ltd (“Ace”) for the 2018 - 2019 Income year isshown as follows:Asset Cost OpeningAdjustableValueMethod EffectiveLifeDecline inValue forThis PeriodClosingAdjustableValuePrinter 1,200 1,200 DiminishingValue3 years 400 800Desks 3,000 2,400 Prime Cost 10 years 300 2,100Appliances 2,600 1,040 Prime Cost 5 years 520 520All depreciable assets are 100% for business use and Ace uses a low-value pool for all eligibleassets. The closing value of the low-value pool at 30 June 2019 was $8,000. Ace purchased a camera on 20 Jan 2020 for $840.Advise Ace of the Income Tax consequences arising out of the above information for the 2019 - 2020 Income year assuming Ace is not a small business entity.
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6. Which depreciation method calculates annual depreciation expense based on the book value of an asset? a. double-declining balanceb. sum-of-the-years'-digitsc. Inventory systemsd. group depreciation
Q42 Dhofar LLC acquired an asset on 1st January 2019 for OMR 500,000 and the rate of depreciation is 10%p.a. Under Straight line method. Replacement cost of the asset on 31st December 2019 was OMR 700,000 and on 31st December 2020 was OMR 1,000,000. You are required to calculate for 2020 assuming switch year is made in the current year, the value of Backlog depreciation. a. OMR 50,000 b. None of these are correct c. OMR 85,000 d. OMR 15,000
Asset turnover ratioFinancial statement data for years ended December 31, 20Y3 and 20Y2, for EdisonCompany follow:a. Determine the asset turnover ratio for 20Y3 and 20Y2.b. Is the change in the asset turnover ratio from 20Y2 to 20Y3 favorable orunfavorable?
PART TWO OF THE QUESTION: USING JOYFUL'S 2018 SALES REVENUE OF $4,530 (MILLION) AND ITS AVERGAE NET FIXED ASSESTS OF $266 (MILLION), CALCULATE THE FIXED ASSET TURN OVER RATIO FOR 2018. (ROUND TO THE NEAREST 2 DECIMAL PLACE).
Subject: Advance finance accounting Q) An item of depreciable machinery is acquired on 1 July 2016 for $280 000. It is expected to have a useful life of 10 years and a zero-residual value (straight-line). On 1 July 2020, it is decided to revalue the asset to its fair value of $150 000.Required:Provide journal entries to account for the revaluation.
Problem 1: Joan Company provided the following data for 2019: Value of biological asset at acquisition cost on January 1, 2019 600,000 Fair valuation surplus on initial recognition at fair value on January 1, 2019 700,000 Change in fair value to December 31, 2019 due to growth and price fluctuation 100,000 Decrease in fair value due to harvest 90,000 Decrease due to sale of biological asset 400,000 Required: Prepare all indicated entries for 2019 necessary to record the transactions relating to the biological asset. Determine the carrying amount of the biological asset on December 31, 2019. Problem 2: Honey Company has a herd of 10 2-year old animals on January 1, 2019. One animal aged 2.5 years was purchased on July 1, 2019 for P108, and one animal was born on July 1, 2019. No animals were sold or disposed during the year. The active market provided the following fair value less cost to sell: 2 – year old animal on January 1 100 2.5 – year old…
An extract of the Asset Register of Ace Pty Ltd (“Ace”) for the 2018 - 2019 Income year is shown as follows: Asset Cost Opening Adjustable Value Method Effective Life Decline in Value for This Period Closing Adjustable Value Printer 1,200 1,200 Diminishing Value 3 years 400 800 Desks 3,000 2,400 Prime Cost 10 years 300 2,100 Appliances 2,600 1,040 Prime Cost 5 years 520 520 All depreciable assets are 100% for business use and Ace uses a low-value pool for all eligible assets. The closing value of the low-value pool at 30 June 2019 was $8,000. Ace purchased a camera on 20 Jan 2020 for $840. Advise Ace of the Income Tax consequences arising out of the above information for the 2019 - 2020 Income year assuming Ace is not a small business entity.
QUESTION 13 A company had net non-current assets of R13 000 at the end of 2019 and R11 000 at the end of 2018. In addition, the company had a depreciation expense of R350 during 2019 and R500 during 2018. Based on this information, the company’s net non-current asset investment for 2019 was ... 1. R 0. R2 000. R2 350. 4 R2 500.
Question 1 Hogwarts Traders: Vehicle 2DatePurchased:1 August 2019 Date CurrentdepreciationAccumulateddepreciationMake andreg.:Hyundai Atos2019 (ZV109GP)31 Dec2019? ?Purchasedfrom:HyundaiAuto(Cash) Cost Price: R150 000 Rate ofDepreciation:15% accordingto straight linemethod. Sold to: Type of Sale: Date sold: Selling Price: Required:Prepare the following accounts in the general ledger of Hogwarts Traders for the financial year ended 31 December 2019 ONLY. Start with the opening balances. Balance the accounts at the end of the month. Ignore VAT.‐ Vehicles‐ Accumulated depreciation: Vehicles‐ Depreciation‐ Asset Disposal‐ Profit/Loss on sale of vehicles.
Subject:- Account On 1 January 2019 the carrying value of equipment was R19 720 (cost price, R25 670 and accumulated depreciation, R5 950). On 1 January 2019 equipment costing R5 670 was purchased (not included in the R25 670). The depreciation policy is to provide for depreciation, on all equipment held at year-end, at 25% per annum on the diminishing-balance method. Prepare the PPE note..

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