Tteokguk Foundation, a governmental unit, owned an idle parcel of real estate consisting of land and factory building. Tteokguk gave the title to this realty to Jangjorim Company as an incentive for a condition that Jangjorim to establish the business operations in the area. Jangjorim paid nothing to this realty which had a fair market value of P2,000,000 at the date of grant. How would Jangjorim record this non-monetary transaction? * O credit to unearned income from government grant for P2,000,000 O credit to retained earnings for P2,000,000 O memo entry only. O credit to donated capital for P2,000,000

Tteokguk Foundation, a governmental unit, owned an idle parcel of real estate consisting of land and factory building. Tteokguk gave the title to this realty to Jangjorim Company as an incentive for a condition that Jangjorim to establish the business operations in the area. Jangjorim paid nothing to this realty which had a fair market value of P2,000,000 at the date of grant. How would Jangjorim record this non-monetary transaction? * O credit to unearned income from government grant for P2,000,000 O credit to retained earnings for P2,000,000 O memo entry only. O credit to donated capital for P2,000,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter12: Nonrecognition Transactions

Section: Chapter Questions

Problem 21P

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Tteokguk Foundation, a governmental unit, owned an idle parcel of real estate consisting of land and factory building. Tteokguk gave the title to this realty to Jangjorim Company as an incentive for a condition that Jangjorim to establish the business operations in the area. Jangjorim paid nothing to this realty which had a fair market value of P2,000,000 at the date of grant. How would Jangjorim record this non-monetary transaction?
Tteokguk Foundation, a governmental unit, owned an idle parcel of real estate consisting of land and factory building. Tteokguk gave the title to this realty to Jangjorim Company as an incentive for a condition that Jangjorim to establish the business operations in the area. Jangjorim paid nothing to this realty which had a fair market value of P2,000,000 at the date of grant. How would Jangjorim record this non-monetary transaction? a.credit to unearned income from government grant for P2,000,000 b. credit to retained earnings for P2,000,000 c. memo entry only. d. credit to donated capital for P2,000,000
Vaughn County owned an idle parcel of real estate consisting of land and a factory building. Vaughn gave title to this realty to Cullumber Company as an incentive for Cullumber to establish manufacturing operations in the County. Cullumber paid nothing for this realty, which had a fair value of $200000 at the date of the grant. Cullumber should record this nonmonetary transaction as a credit to Contribution Revenue for $200000. credit to Comprehensive Income for $200000. credit to Donated Capital for $200000. memo entry only.
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On July 1, 2020, Martinez Ltd., a publicly listed company, acquired assets from Marigold Ltd. On the transaction date, a reliable, independent valuator assessed the fair values of these assets as follows: Manufacturing plant (building #1) $399,620 Storage warehouse (building #2) 209,860 Machinery (in building #1) 75,000 Machinery (in building #2) 45,000 The buildings are owned by the company, and the land that the buildings are situated on is owned by the local municipality and is provided free of charge to the owner of the buildings to encourage local employment.In exchange for the acquisition of these assets, Martinez issued 145,530 common shares. Martinez’s shares are thinly traded (that is, traded in relatively low volume leading to more volatile price changes than most public companies). In the most recent sale of Martinez’s shares on the Toronto Stock Exchange, 800 shares were sold for $5 per share. At the time of acquisition, both buildings were considered…
On July 1, 2020, Martinez Ltd., a publicly listed company, acquired assets from Marigold Ltd. On the transaction date, a reliable, independent valuator assessed the fair values of these assets as follows: Manufacturing plant (building #1) $399,620 Storage warehouse (building #2) 209,860 Machinery (in building #1) 75,000 Machinery (in building #2) 45,000 The buildings are owned by the company, and the land that the buildings are situated on is owned by the local municipality and is provided free of charge to the owner of the buildings to encourage local employment.In exchange for the acquisition of these assets, Martinez issued 145,530 common shares. Martinez’s shares are thinly traded (that is, traded in relatively low volume leading to more volatile price changes than most public companies). In the most recent sale of Martinez’s shares on the Toronto Stock Exchange, 800 shares were sold for $5 per share. At the time of acquisition, both buildings were considered…
On July 1, 2020, Martinez Ltd., a publicly listed company, acquired assets from Marigold Ltd. On the transaction date, a reliable, independent valuator assessed the fair values of these assets as follows: Manufacturing plant (building #1) $399,620 Storage warehouse (building #2) 209,860 Machinery (in building #1) 75,000 Machinery (in building #2) 45,000 The buildings are owned by the company, and the land that the buildings are situated on is owned by the local municipality and is provided free of charge to the owner of the buildings to encourage local employment.In exchange for the acquisition of these assets, Martinez issued 145,530 common shares. Martinez’s shares are thinly traded (that is, traded in relatively low volume leading to more volatile price changes than most public companies). In the most recent sale of Martinez’s shares on the Toronto Stock Exchange, 800 shares were sold for $5 per share. At the time of acquisition, both buildings were considered…
On July 1, 2020, Martinez Ltd., a publicly listed company, acquired assets from Marigold Ltd. On the transaction date, a reliable, independent valuator assessed the fair values of these assets as follows: Manufacturing plant (building #1) $399,620 Storage warehouse (building #2) 209,860 Machinery (in building #1) 75,000 Machinery (in building #2) 45,000 The buildings are owned by the company, and the land that the buildings are situated on is owned by the local municipality and is provided free of charge to the owner of the buildings to encourage local employment.In exchange for the acquisition of these assets, Martinez issued 145,530 common shares. Martinez’s shares are thinly traded (that is, traded in relatively low volume leading to more volatile price changes than most public companies). In the most recent sale of Martinez’s shares on the Toronto Stock Exchange, 800 shares were sold for $5 per share. At the time of acquisition, both buildings were considered…