United Ltd purchases a company car for £198,000 plus VAT at 17.5%. The car is expected to have a life of three years and a residual value of £90,000. Payment is made partly in cash and partly by trading in an old car with a net book value of £70,560 and a trade-in value of £54,000. The company uses the straight-line basis to depreciate its cars. What is the net book value of the car after one year? A £150,000 B £156,000 C £162,000 D £185,100

Q: Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse…

A: Answer to question a. Purchase cost of warehouse $65,000 Less: Depreciation claimed till year 0…

Q: Justice Inc. sold its old equipment with original cost of 2,000,000 and accumulated depreciation of…

A: When the asset is sold at a price higher than its book value, it is said to be sold at a profit.

Q: Mirabel Company has an old equipment that cost P700,000 with an accumulated depreciation of…

A: In case of exchange of equipments having commercial substance, equipment sold and equipment acquired…

Q: Estimated total future cash flows from the trade name are P13,000 on January 4, 2011.…

A: Given information is: Aeli Corp. obtained a trade name in January 2009, incurring legal costs of…

Q: On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P800,000 and with…

A: Book value of furniture and fixtures = Cost of furniture and fixtures -Accumulated depreciation…

Q: On 1 January, 2010, Ahafoman Contractors (AC) bought an Heavy Duty Crane machine from Tractor and…

A: =200000+189890*3-600000 =169670

Q: On 1 January, 2010, Ahafoman Contractors (AC) bought an Heavy Duty Crane machine from Tractor and…

A: Hire Purchase System: The Hire Purchasing Mechanism is a unique purchase and sale system. The items…

Q: On January 1, 2021, Famous Inc. acquired a piece of equipment for a list price of $340,000. It paid…

A: PLEASE LIKE THE ANSWER   1. Date  Particulars  Debit ($)  Credit ($)  2021…

Q: Opal, Inc. owns a delivery truck that initially cost $40,000. After a depreciation of $15,000 had…

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

Q: ABC Co purchases a Bus at a price of OMR 25,000 and incurred other expenditures such as…

A: Cost of bus to be capitalised = Purchase price + Non refundable taxes + paitning of truck

Q: On January 1, 2018, Sana Madali Lang Company sold machinery costing P5,000,000 with accumulate…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: Puerto Princesa Company sold its parking lot for P2,000,000. The lot has a zonal value of P2,500,000…

A: solution: given : sale price            =P2,000,000 zonal value         =P2,500,000 appraisal value…

Q: The initial amount of the note receivable is (Round off the resulting present value of the note to…

A: The initial amount of notes receivable is calculated as present value of the installment payment.…

Q: Briyanne, Inc. purchased a computer for RM5,000. During 2016 and 2017, the company recorded total…

A: solution concept If a transaction has commercial substance The asset acquired shall be recorded at…

Q: In January 2014, the Jennifer Corporation purchased a patent for $231,000 from Travis Company that…

A: Amortization expense: A charge created on intangible asset for its use over the life of asset. It is…

Q: Romanova Inc. decides to sell an old piece of equipment and receives $5,000 cash for it. The…

A: Net book value of equipment = Original cost - Accumulated depreciation = $50,000 - $47,000 = $3,000

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: Reason Inc. sold its old equipment with original cost of P2,000,000 and accumulated depreciation of…

A: Solution Working note  Carrying amount of equipment = original cost - accumulated depreciation. =…

Q: Bullwinkle Company owns a equipment with a cost of $367,200 and accumulated depreciation of $54,100…

A: sales commission is 5% on sale value: $227,400 x 5% =$13,870

Q: Hi-Way Berhad leased a specialized equipment from TL Bhd for 5 yearly instalments of RM 30 million…

A: Capital lease: It is an arrangement wherein the fixed asset is funded by the lessor but all the…

Q: On 11/01/20X1, TK purchases a new truck at a price of EUR 205,000 plus VAT on Ziel. The transfer of…

A: All costs required to bring an asset to its present location and condition for its intended use…

Q: Garcia Co. owns equipment that costs $76,800, with accumulated depreciation of $40,800. Garcia sells…

A: Gain (Loss) on Sale of Equipment = Sale Consideration - (Cost - Accumulated Depreciation)

Q: Prepare a differential analysis on February 21 as to whether Duncan Company should lease…

A: Incremental Analysis: Incremental analysis refers to the analysis of differential revenue that could…

Q: john Ltd is a car retailer. On 1 April 2020, Jack Ltd sold a car to kay on the following terms: The…

A: Present Value :— It is the value of future cash flows in present day.   According to revenue…

Q: On January 1, 200A, ABC Company sells to XYZ, 5 used factory equipment, each of which was acquired…

A: Promissory note is also written as note receivable or note payable in which one party promise to pay…

Q: Ferrigno Company owns equipment with a cost of $225,000 and accumulated depreciation of $81,000 that…

A: Profit = Revenue less costs

Q: On 1 January 2018, LFC Bhd acquired a fast food franchise  for RM300,000. The legal life of the…

A: Journal entry on 31st december 2018 Particulars Debit Credit Franchise asset A/C Dr 300000…

Q: On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at…

A: The current portion of note receivable is the part which is due within 1 year. In this case, as on…

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: Pueblo Co. acquires machinery by paying $10,000 cash and signing a $5,000, 2-year,…

A:

Q: For what amount will LAR record the range?

A: Recording the purchase of an asset is an important ledger entry as it show cases in the balance…

Q: On August 1, 2014, Bright Company purchased a new machine on a deferred payment basis. A down…

A: Solution: Capitalized cost of machine = Cash equivalent  price + Installation cost

Q: Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse…

A: Here discuss about the topic of Amount Realized on the sale of assets and any kind of amount…

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: What is the interest income for the year 2023? How much is the total proceeds of Squirtle for the…

A: Answer:

Q: On January 1, 2021, Anna Company sold a piece of equipment to Banana Company with a cost of…

A: Basic Accounting Concept  Sales of Assets in exchange of Note receivable Amortization of Loan…

Q: On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at…

A: Particulars  Amount (P) Sales 800000 Less: down payment  (100000) Less : installment of…

Q: Llungby AB spent 1,000,000 krone in 2017 on the development of a new product. The company determined…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: On 1 January, 2010, Ahafoman Contractors (AC) bought an Heavy Duty Crane machine from Tractor and…

A: =200000+189890*3-600000 =169670

Q: On January 1, 2020, Ferdie Company entered into a contract to acquire a new machine for its factory.…

A: Machine or fixed assets means the asset which is used by company for many years to come for the…

Q: On November 4, 2020, GT Corporation sells a piece of its equipment. GT Corporation had initially…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: What should be the journal entry to record the disposal of the equipment?

A: As per IAS 39 ( Financial Instruments - Recognition and Measurement ) Financial assets has to be…

Q: On June 1, 2020, Mylene Company sells a new car costing P1,620,000 for P2,268,000. A used car is…

A: Gross profit refers to the profit which is earned by the company after deducting all it’s production…

Q: Banco Company acquired a new machine on a delayed payment basis on August 1, 2018. A down payment of…

A: A cost is the worth of money that has been used up to create something or supply a service and is…

Q: Josey Company entered into a contract to acquire a new machine for its factory. The machine, which…

A: The cost of machine comprises its purchase price, duties and taxes which are non recoverable , and…

Q: Ferrigno Company owns equipment with a cost of $225,000 and accumulated depreciation of $81,000 that…

A: Lease- It is a contract in which one person gives its asset to a second person for use by the second…

Q: cash flow associated with the sale of the machine?

A: Cash Flow is the outcome of the invested sum in any asset. Here, the investment is in the purchase…

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…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.