The following information was disclosed in the financial statements of Highfield Co for the year ended 31/12/2015. 2014 2015 Plant &Equipment cost Accumulated Depreciation 255,000 (100,000) 235,000 (110,000) During 2015, the following occurred in respect of Plant & Equipment: Purchases of P&E Depreciation charged on P&E Loss on disposal of P&E 10,000 25,000 8,000 What were the sales proceeds received on disposal of the P&E? A. O 8,000 B. O $25,000 C. $15,000 D. $7,000

The following information was disclosed in the financial statements of Highfield Co for the year ended 31/12/2015. 2014 2015 Plant &Equipment cost Accumulated Depreciation 255,000 (100,000) 235,000 (110,000) During 2015, the following occurred in respect of Plant & Equipment: Purchases of P&E Depreciation charged on P&E Loss on disposal of P&E 10,000 25,000 8,000 What were the sales proceeds received on disposal of the P&E? A. O 8,000 B. O $25,000 C. $15,000 D. $7,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Intermediate Accounting ll ch 16 On January 1, 2021, Ameen Company purchased major pieces of manufacturing equipment for a total of $54 million. Ameen uses straight-line depreciation for financial statement reporting and deducted 100% of the equipment’s cost for income tax reporting in 2021. At December 31, 2023, the book value of the equipment was $45 million. At December 31, 2024, the book value of the equipment was $42 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2024 was $72 million. Required: Prepare the appropriate journal entry to record Ameen’s 2024 income taxes. Assume an income tax rate of 20%. What is Ameen’s 2024 net income?
Intermediate Accounting ll ch 16 5. On January 1, 2021, Ameen Company purchased major pieces of manufacturing equipment for a total of $48 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2023, the book value of the equipment was $42 million and its tax basis was $32 million. At December 31, 2024, the book value of the equipment was $40 million and its tax basis was $25 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2024 was $30 million. Required: Prepare the appropriate journal entry to record Ameen’s 2024 income taxes. Assume an income tax rate of 25%. What is Ameen’s 2024 net income?
E4.17 (LO 2, 3, 5) The following information was taken from the records of Roland Carlson Inc. for the year 2020: Income tax applicable to income from continuing operations $187,000, Income tax applicable to loss on discontinued operations $25,500Gain on sale of equipment $ 95,000 Cash dividends declared $ 150,000Loss on discontinued operations 75,000 Retained earnings January 1, 2020 600,000Administrative expenses 240,000 Cost of goods sold 850,000Rent revenue 40,000 Selling expenses 300,000Loss on write-down of inventory 60,000 Sales revenue 1,900,000 Shares outstanding during 2020 were 100,000. Prepare a multiple step income statement (including earnings per share) and a statement of…
Question 1 Loftus et al (2023) Exercise 13.5 Amended The following information was extracted from records of Nawa Ltd for the year ended 30 June 2024. NAWA LTD Statement of financial position (extract) as at 30 June 2024 Assets Accounts receivable $ 50 000 Allowance for doubtful debts (5 000 ) $ 45 000 Motor vehicles 250 000 Accumulated depreciation — motor vehicles (50 000 ) 200 000 Liabilities Interest payable 5 000 Additional information • The accumulated tax depreciation for motor vehicles at 30 June 2024 was $100 000. • As at 30 June 2023, the balance in the deferred tax asset was $2,000 and the balance in the deferred tax liability was $8,000. • The income tax rate is 30%. Required: Prepare a deferred tax worksheet for Nawa Ltd and the end of year deferred tax journal entry required to bring the deferred tax accounts to their ending balances as at 30 June 2024.
q. 14 teddy’s Pillow’s had beginning net fixed assets of $461 and ending net fixed assets of $530. Assets valued at $309 were sold during the year. Depreciation was $22. What is the amount of net capital spending? $91 $47 $243 $69 $400
PA7. LO 4.3Using the following information: make the December 31 adjusting journal entry for depreciation determine the net book value (NBV) of the asset on December 31 Cost of asset, $250,000 Accumulated depreciation, beginning of year, $80,000 Current year depreciation, $25,000
QUESTION 1The following trial balance relates to Golden Ltd at 30th September 2018 GHS'000 GHS'000Sales (a) 760,000Material purchases (b) 128,000Production labour (b) 248,000Factory overheads (b) 160,000Distribution costs 28,400Administrative expenses (c) 92,800Finance costs 700Investment income 1,600Leased property - at cost (b) 100,000Plant and equipment - at cost (b) 89,000Accumulated amortisation/depreciation at 1/10/2017- leased property 20,000- plant and equipment…
Question C5 Majan Ltd income statement for the year ended 31st Dec 2020 and the balance sheets as at 31st Dec 2009 and 2019 are as follows: Income statement OMR in million Revenue 312 Cost of sales (177) Gross profit 135 Distribution expenses (36) Administrative expenses (15) 84 Rental income 14 Operating profit 98 Interest payable (13) Profit before taxation 85 Taxation (18) Profit for the year 67 Balance sheet as at 31st Dec 2020 and 2019 2020 2019 OMR in million OMR in million Non – current assets Property, plant and equipment Land and buildings 155 155 Plant and machinery 157 163 312 318 Current assets Inventories 18 21 Trade receivables 73 70 Current liabilities…
3.1. Discuss the disclosure requirements for a change in accounting policy. 3.2. RT (LTD) purchased a plant for R3 000 000 on 1 January 2018. Depreciation – on a straight-line basis over 25 years Residual Value – R500 000 On 1 January 2022, the company reassessed the remaining useful life of the asset and calculated it to be 16 years and the residual value was changed to R250 000 Disclose the change in accounting estimate for the year ended 31 December 2022? 3.3. State the journal to correct the depreciation?
N1. Exercise 29.5 Wattle Ltd owns all the share capital of Ashgrove Ltd. The income tax rate is 30%. During the period ended 30 June 2024, the following transactions took place: (a) Ashgrove Ltd sold inventories costing $50 000 to Wattle Ltd. Ashgrove Ltd recorded a $10 000 profit before tax on these transactions. At 30 June 2024, Wattle Ltd has none of these goods still on hand. (b) Wattle Ltd sold inventories costing $15 000 to Ashgrove Ltd for $22
EIL.25 (LOS)) (Revaluation Accounting) Pengo Ltd. owns land that it purchased at a cost of V400 million in 2017. The company chooses to use revaluation accounting to account for the land. The land's value fluctuates as follows (all amounts in thousands as of December 31): 2017, V450,000; 2018. V360,000, 2019, V385,000; 2020, ¥410,000, and 2021, V460,000. Instructions Complete the following table below. Value at Other Comprehensive Accumulated Other Recognized December 31 Income Comprehensive Income Net Income 2017 2018 2019 2020
Q#6 The comparative balance sheet of Paton Corporation at Dec 31, 2004 and 2003 is as follows: Assets 2004 2003 Cash 60,900 52,800 Trade receivable 86,100 70,000 Inventory 126,600 136,700 prepaid expense 4,400 3,100 Land 65,000 65,000 Building 381,500 291,500 Accumulated Depreciation- Building (154,600) (143,400) Machinery 300,500 300,500 Accumulated Dep.-machinery (101,200) (71,500) Patents 30,800 38,500 800,000 743,200 Liabilities and stockholder's Equity Account payable 58,800 88,800 Dividends payable 9,400 8,250 Salaries payable 5,000 5,450 Mortgage payable 55,000 ---- Bonds payable ---- 110,000 Common stock 450,000 350,000 Paid-in capital in excess of par 80,000 70,000 Retained earnings…