When an entire interest in a passive activity is disposed of any passive loss carryover with respect to that activity can be deducted by the seller in the year of the sale. True or false
Q: Which of the following statements is true regarding goodwill?
A: Goodwill: Goodwill is an intangible asset . This enables the firm to earn more than the other…
Q: Can a member who contributed an asset demand for its return, transfer or conveyance upon dissolution…
A:
Q: Under PFRS for SME's, goodwill arising from business combination Charged to retained earnings…
A: Goodwill arising from business combination will be shown as intangible asset in the statement of…
Q: In a transaction accounted for using the acquisition method where consideration transferred is less…
A: The acquisition method is used when a business is taken over by another business.
Q: Goodwill arising from business combination is * O O At the discretion of management, either tested…
A: Goodwill is an intangible asset. It is the excess of the purchase price paid for an acquired entity…
Q: If the acquirer's interest in the net fair value of the identifiable asset liabilities exceeds the…
A: In extremely rare circumstances, an acquirer will make a bargain purchase in a business combination…
Q: What is Sal's basis at the sale date What is the gain realized by Sal_ What is the gain recognized…
A: As per Bartleby guidelines, in case of multi-part questions, we are only allowed to answer the first…
Q: If a loss from sale or exchange of property between related parties is disallowed and the property…
A: If a loss from sale or exchange of property between related parties is disallowed and the property…
Q: How is goodwill or gain from bargain purchase computed? Group of answer choices a. The difference…
A: Solution How is goodwill or gain from bargain purchase computed Correct answer is option d) The…
Q: If the value implied by the purchase price of an acquired company exceeds the fair values of…
A: A Goodwill in bookkeeping is an immaterial resource that emerges when a purchaser gains a current…
Q: FASB ASC 805, “Business Combinations,” provides principles for allocating the fair value of an…
A: Financial Accounting Standards Board (FASB): FASB is an independent 7 member board, of accounting…
Q: the straight-line method. nuary 2, 2021, Chamber Company fied this asset as held for sale. Buil to…
A: A Fixed Asset is usually reported at the cost or fair value unless and until it is meant to be sold.
Q: If the value implied by the purchase price of an acquired company exceeds the fair values of…
A: Goodwill on acquisition = Purchase consideration paid - Fair value of net identifiable assets…
Q: When a taxpayer sells an asset, what is the difference between realized and regonized gain or loss…
A: Difference between complete and recognized gains and losses Realized gains or losses for the…
Q: Choose the correct. FASB ASC 805, “Business Combinations,” provides principles for allocating the…
A: Financial Accounting Standards Board (FASB): FASB is an independent 7 member board, of accounting…
Q: Which of the following transactions would most likely be a deductible repair under s 25-10? a.…
A: Deductible Repair : The amount spent on repairs which are eligible for the deduction from the…
Q: The sale of a depreciable asset resulting in a loss indicates that the proceeds from the sale were…
A: Book value of assets = Cost of the assets - Accumulated depreciation Gain from sale of assets occurs…
Q: True or false SL depreciation assumes that an equal share of the total depreciation is not taken…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: An entity classified a noncurrent asset accounted for under the cost model as held for sale at the…
A: Answer = Option C The lower of carrying amount on the basis that it had never been classified as…
Q: In the event of liquidation, should the non-current asset recognised under MFRS116 Property, Plant…
A: Step 1 As per the provisions of non current held for sale, under this statement those non current…
Q: 11 In a taxable asset acquisition, the seller would likely pay ordinary income taxes on the gain…
A: The company's aim will be to increase the profitability of the company. The profits can be arrived…
Q: The gain/loss related to a sale and leaseback transaction not recognized by the seller-lessee in its…
A: Rights retained .. The gain or the loss relating to a sale and leaseback transaction not recognized…
Q: an impairment of a non current asset held for sale:
A: Impairment means generally calculated as Carrying amount minus recoverable value. Any impairment…
Q: Rationale for nonrecognition includes which of the following? I. A refinement of the realization…
A: Non-recognition of an event and transaction in the current year depends on various circumstances…
Q: hen assets that have been sold and accounted for by the installment method are subsequently…
A: Inventory is the current asset posted on the balance sheet of the company.
Q: In liquidation, the sale of the non-cash assets is called a. realization b. net proceeds c. gain…
A: Answer - First of all in Liquidation Process there are four steps. Second step in Liquidation…
Q: Which of the following is NOT deductible from taxable income ? a) Original cost of an asset with a…
A: Tax Deductible refers to the expensed amount which provides incentive to taxpayer to reduce its…
Q: Under the Acquisition Method, regardless of the purchase price, identifiable net assets of the…
A: In case one company overtake the assets and liabilities of another company , then accounting for…
Q: What are the two major treatments of a superficial loss on a sale and repurchase of identical…
A: The capital gain and loss are realized when the non-registered security is sold in the market at a…
Q: a. What are the amount and character of the gain or loss Longworth will recognize on the sale?…
A: Introduction:- Depreciation is a non cash expenses. Depreciation is charged on fixed asset over a…
Q: On Day 1, Tomay Co. commits to sell a financial asset. The sale transaction will be settled on Day…
A: A financial asset can be sold and purchased by two entities. The recognition of sale occurs at the…
Q: Investment property under the cost model would require ? - -Tested for impairment only -To be…
A: Answer: As per Q/A guidelines, first question has been answered. Please repost remaining question.…
Q: Bonus depreciation reduces the adjusted basis of property in the same manner that regular MACRS…
A: The Modified Accelerated Cost Recovery System (MACRS) is the system of depreciation for the current…
Q: goodwill or gain from bargain purchase computed
A: First option is wrong because non-controlling interest is not considered in determining the goodwill…
Q: When a noncurrent asset is classified as held for sale a. depreciation ceases at the date it is…
A: As per IFRS 5 Non current assets held for sale and discontinued operations An Non-current asset…
Q: A gain on a bargain purchase is A. Recognized in profit or loss in the year of acquisition B.…
A: Bargain Purchase means the acquisition of Assets at a value that is substantially less than their…
Q: The amount of gain (loss) on sale and leaseback transaction is: A. The difference of fair value and…
A: Gain is booked when money is received on the sale of the asset. leasing back can be assumed to be…
Q: The price that would be received to sell an asset or paid to transfer a liability in an orderly sale…
A: In accountancy, an asset can be defined as a business item used for the purpose of running business.…
Q: A company can opt not to take the Bonus Depreciation by completing Form 4562, Depreciation and…
A: Depreciation is an expense which shows the decrease in asset value over its life due to use, wear…
Q: I for sale at the lower of carrying amount and recoverable amoun current asset that is to be…
A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…
Q: The co-owner of an immovable property has a right to exercise A. pre-emption B. Redemption C.…
A: The co owner may exercise the right of redemption in case the immovable property...
Q: In determining the basis of like-kind property received, postponed losses are: O Subtracted from the…
A: Section 1031 of IRC (Internal revenue code) includes the term 'like kind property' for referring to…
Q: If a seller makes an intra-entity sale of a depreciable asset at a price above book value, the…
A:
When an entire interest in a passive activity is disposed of any passive loss carryover with respect to that activity can be deducted by the seller in the year of the sale. True or false
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- If a loss from sale or exchange of property between related parties is disallowed and the property is subsequently sold to an unrelated party, a.The disallowed loss is lost forever. b.The disallowed loss may be used if there is a further loss on the subsequent sale. c.The unrelated party may claim the loss previously disallowed. d.An amended return may be filed to claim the loss previously disallowed. e.The disallowed loss may be used to offset gain on the subsequent sale.If a seller makes an intra-entity sale of a depreciable asset at a price above book value, the seller’s beginning Retained Earnings is reduced when preparing each subsequent consolidation. Why does the amount of the adjustment change from year to year?A gain on a bargain purchase is A. Recognized in profit or loss in the year of acquisitionB. Amortized in profit or loss over the lower of its legal life and estimated useful lifeC. Recognized in profit or loss in the year of acquisition but only after reassessment of the assets acquired and liabilities assumed in the business combinationD. None of the above
- TRUE OR FALSE? The prior period will be affected if during the current year the management of an entity decides to classify a non currrent asset as held for sale.The “excess of the acquirer’s interest in the net fair value of acquiree’sidentifiable assets, liabilities, and contingent liabilities over cost” (formerly knownas negative goodwill) should be A. Reassessed as to the accuracy of its measurement and then recognized immediately in profit or loss.B. Amortized over the life of the assets acquired.C. Carried as a capital reserve indefinitely.D. Reassessed as to the accuracy of its measurement and then recognized in retained earnings.What are the two major treatments of a superficial loss on a sale and repurchase of identical properties by an individual? Question 6 options: a) Loss deducted and same loss added to income b) Loss disallowed and same loss added to ACB of substituted property c) Loss decreased in the year and same loss disallowed in the future year d) Loss changed to gain and same loss is adjusted to cost of sold property
- Consider the following statements:I. If the financial asset is reclassified from amortized cost to FVOCI, the financial asset is measured at fair value at the reclassification date and a new effective interest rate must be determined based on the new carrying amount or fair value at reclassification date.II. The difference between previous carrying amount and fair value of a financial asset when reclassified from amortized cost to FVPL is recognized in profit or loss.III. The cumulative gain or loss previously recognized in other comprehensive incomeis reclassified to profit or loss at reclassification date when the financial asset is reclassified from FVOCI to FVPL.IV. The original effective rate is not adjust for financial assets that are reclassified from FVPL to FVOCI.State whether the foregoing statements are incorrect.a. I and II are incorrectb. II and III are incorrectc. I and IV are incorrectd. All the statements are incorrectWhich of the following statements is true regarding goodwill? a.Goodwill is amortized based on the lesser of the useful life or the legal life. b.Goodwill is the exclusive use of a name, term, or symbol used to identify a business or its product. c.If the purchase price of a business exceeds the fair value of its net assets, the excess is recorded as goodwill. d.Goodwill is amortized based on a 10-year period.An entity classified a noncurrent asset accounted for under the costmodel as held for sale at the current year-end. The entity decided at theend of the following year not to sell the asset but to continue to use it. Theasset should be measured at the end of the following year at A. The lower of carrying amount and recoverable amountB. The higher of carrying amount and recoverable amountC. The lower of carrying amount on the basis that it had never been classified as held forsale and recoverable amountD. The recoverable amount
- The sale of a depreciable asset resulting in a gain indicates that the proceeds from the sale were a. Less than current market value b. Greater than cost c. Greater than book value d. Less than book valueIf an entity capitalized transaction costs to a financial asset at fair value through profit or loss, then subsequently adjusted the initial cost to fair value at year-end, what is the overall effect on the current year net income? * A. Current year net income will be understated B. Current year net income will be overstated C. Current year net income will either be overstated or understated, depending on whether the fair value at year end is more than, less than, or equal to the initial cost D. No effectThe sale of a depreciable asset resulting in a loss indicates that the proceeds from the sale are a. Lesser than cost b. Less than current fair value c. Lesser than carrying amount d. Greater than carrying amount e. Greater than cost
