Which of the following situation/s do you think are considered to be part of property, plant and equipment as per IAS 16?I An entity owns a motor vehicle for the exclusive business and private use of its chief accounts officerII.An entity acquired a license to import a specific chemical into the country.II.The entity owns a Pickup truck and trailer used to transport feed to the animals in a cattle farm.IV. An entity owns a fleet of motor vehicles. The vehicles are used by the sales staff in the performance of their duties.I, II, III and IV onlyI and IV onlyI, III and IV onlyIV onlySpeakers: Muted03:43EN A E s all

A company’s physical fixed assets or long-term assets that are tangible in nature and have maturity…

Which of the following situation/s do you think are considered to be part of property, plant and equipment as per IAS 16? I An entity owns a motor vehicle for the exclusive business and private use of its chief accounts officer II. An entity acquired a license to import a specific chemical into the country. III. The entity owns a Pickup truck and trailer used to transport feed to the animals in a cattle farm. IV. An entity owns a fleet of motor vehicles. The vehicles are used by the sales staff in the performance of their duties. I, II, III and IV only I and IV only I, III and IV only IV only

Which of the following situation/s do you think are considered to be part of property, plant and equipment as per IAS 16? I An entity owns a motor vehicle for the exclusive business and private use of its chief accounts officer II. An entity acquired a license to import a specific chemical into the country. III. The entity owns a Pickup truck and trailer used to transport feed to the animals in a cattle farm. IV. An entity owns a fleet of motor vehicles. The vehicles are used by the sales staff in the performance of their duties. I, II, III and IV only I and IV only I, III and IV only IV only

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter12: Nonrecognition Transactions

Section: Chapter Questions

Problem 27P

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Entity A receives land from the government conditioned that the land will only be used in Entity A’s primary business activities and should never be sold. If in case, Entity A decides not to use the land in its primary business activities, it shall return the land to the government. Which of the following standards is least likely to be relevant in accounting for the land? a. PAS 2 PAS 16 PAS 20 All of these are relevant
Which of the following assets held by an enterprise would not qualify as investment in property as defined by PAS 40, Investment property? Land for sale in the ordinary course of business Land held for capital appreciation Land held for undetermined future use Building held to earn rentals Which of the following is included in the definition by PAS 20 of government grants?I. Transfer of resources to an entity in return for past or future compliance with certain conditions.II. Transactions with the government that cannot be distinguished from the normal trading transactions of the entity. II only I only Both I and II Neither I and II Which of the following would result in a Dr to AR? Sale of goods under " special order" "Special order is yet to be completed" Sale of goods classified as Trade Sale of goods under "Consignment" Sale with a right of repurchase
For each of the following assets, state whether the asset is tangible/intangible property, personal/real property, and depreciable/nondepreciable property. a. A melt-indexer used in a company research lab. b. A plot of land for the production of income. c. A restaurant franchise. d. An amateur radio tower attached to land with multiple antennas on it. e. Fencing and landscaping around an office complex.
Which of the following is a type of intangible business property that is legally protected? Select one: a. Land and equipment. b. Stock and Inventory. c. Acres. d. Jane’s registered symbol and design for her hair gel. What factors should businesses consider when determining financing needs to determine whether they can repay the debt? Select one: a. Inventory b. Equity c. Depreciation d. Liquidity The most successful businesses do not have well-defined portraits of the customers they are seeking to attract. Select one: True False Which of the following is an example of how an entrepreneur might use marketing information? Select one: a. To create surveys. b. To carry out research. c. To forecast change. d. To examine and analyze data.
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A company may acquire property, plant, and equipment and intangible assets for cash, in exchange for a deferred payment contract, by exchanging other assets, or by a combination of these methods. Required: 1. Identify six types of costs that should be capitalized as the cost of a parcel of land. For your answer, assume that the land has an existing building that is to be removed in the immediate future in order that a new building can be constructed on the site. 2. At what amount should a company record an asset acquired in exchange for a deferred payment contract? 3. In general, at what amount should assets received in exchange for other nonmonetary assets be valued? Specifically, at what amount should a company value a new machine acquired by exchanging an older, similar machine and paying cash?
Sparrow Ltd owns a building, currently carried in its accounting records at GHS 800,000. It has agreed to exchange this building for a building owned by Turner Ltd. The building currently owned by Sparrow Ltd has a fair value of GHS 1 million. The building currently owned by Turner Ltd has a fair value of GHS 1.1 million. Sparrow Ltd has agreed to pay the legal costs of the transfer which amount to GHS 10,000. According to IAS 16 Property, Plant and Equipment, at what value should the building currently owned by Turner Ltd be recorded at initially in Sparrow Ltd’s accounting records? A GHS 800,000 B GHS 1 million C GHS 1.1 million D GHS 990,000
Sparrow Ltd owns a building, currently carried in its accounting records at GHS 800,000. It has agreed to exchange this building for a building owned by Turner Ltd. The building currently owned by Sparrow Ltd has a fair value of GHS 1 million. The building currently owned by Turner Ltd has a fair value of GHS 1.1 million. Sparrow Ltd has agreed to pay the legal costs of the transfer which amount to GHS 10,000. According to IAS 16 Property, Plant and Equipment, at what value should the building currently owned by Turner Ltd be recorded at initially in Sparrow Ltds accounting records?
Indicate how the following items would generally be reported in the financial statements:1. Investment in subsidiary company2. Cost of engineering activity required to advance the design of a product to the manufacturing stage3. Lease prepayment4. Cost of equipment purchased5. Cost of searching for applications of new research findings 6. Cost incurred in the formation of a corporation7. Training costs incurred in start-up of new operation8. Purchase cost of a franchise9. Goodwill generated internally10. Cost of testing in search of product alternatives11. Goodwill acquired in the purchase of a business12. Cost of developing a patent13. Cost of purchasing a patent from an inventor 14. Legal costs incurred in securing a patent15. Unrecovered costs of a successful legal suit to protect the patent16. Cost of conceptual formulation of possible product alternatives17. Cost of purchasing a copyright18. Research and development costs19. Cost of developing a trademark20. Cost of purchasing a…
In an agreement involving the right to acquire property, which of the following are conditions that must be met in order for the IRS to accept the purchase price set in the agreement as a valid measurement of the value of the property being acquired? The purchase price must be determined by an independent appraisal submitted with an informational gift tax return regardless of the value of the property. The agreement must be a bona fide business arrangement. The agreement cannot be an attempt to transfer the property to a family member for less than full and adequate consideration. The terms of the agreement must be comparable to those that would be entered into by persons in an arm's-length transaction A) I and III B) II and IV C) I and IV D) II, III, and IV
Indicate whether the following items are Section 1245 or Section 1250 property or, if neither, indicate what type of property they are considered to be (e.g., capital asset, Section 1231 asset). (Remember that Section 1245 and Section 1250 properties are sub-categories of depreciable Section 1231 property.) Assume all the items have been held long-term. Equipment used in the business Personal automobile Truck used in the business Escalator used in the business Inventory Residential rental housing Nonresidential real property depreciated under the straight-line method Leasehold of Section 1245 property
Which of the following will not give rise to a CGT event? Select one: Destruction of a factory by fire.The subdivision of land by an owner of land in preparation for development.None of theseSale of a residential property.Liquidator or administrator declares shares in an entity are worthless