Write an Essay with a legal basis "A" bought the uncut, sugarcane crop of "B" still standing in the sugarcane field on "B's" estimation that the sugarcane would produce 3000 piculs of sugar. However, when the sugarcane was processed it only yielded 2,017 piculs of sugar. Does the estimation of "B" constitute fraud to invalidate the sale?
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- On April 30, White sold land with a book value of $600,000 to Black for its fair value of $800,000. Black gave White a 12 percent, $800,000 note secured only by the land. At the date of sale, Black was in a very poor financial position and its continuation as a going concern was very questionable. white should...... a. Use the cost recovery method of accounting b. Record the note at its discounted value c. Record a $200,000 gain on the sale of the land d. Increase the allowance for uncollectibles for the full amount of the noteOn January 1,2014 the Mayfair Company has machinery on the books that originally cost $100,000. It sold the machine and recorded a $1,000 gain. Which of the following is true? Multiple Choice Mayfair sold the asset for less than its book value Mayfair sold the asset for more than its book value Mayfair sold the asset at book value Mayfair violated GAAP. None of the other alternatives are correctPlease answer the following: 1.1.2 Busi Ngidi is the sole proprietor of Ngidi’s Clothing Manufacturers which wasrenting property in an industrial park. To expand her operations, Ngidi’spurchased its own property, demolish the old building, construct a new buildingand install new equipment. The following costs were made available Ignore VATimplications: (2) Equipment RPurchase price of equipment- 400 000Cost of transport and installation of equipment- 70 000Fine paid for illegal transport of equipment - 10 000 Property RPurchase price of property- 840 000Legal and transfer fees- 21 000Cost of demolishing old building- 30 000Proceeds from sale of old building material- 9000Architect’s and engineers’ fees - 16 000Cost of construction of new building- 502 000 Determine which one of the following amounts represents the total capitalisedcost of the asset, property.A) R1 400 000B) R1 363 000C) R1 418 000D) R1 379 000 1.1.3 Using the information for Ngidi’s Clothing Manufacturers supplied in…
- Hanover leased a portion of his farm to Brown and Black, doing business as the Colorite Hatchery. Brown went upon the premises to remove certain chicken sheds that he and Black had placed there for hatchery purposes. Thinking that Brown intended to remove certain other sheds, which were Hanover’s property, Hanover accosted Brown, who willfully struck Hanover and knocked him down. Brown then ran to the Colorite truck, which he had previously loaded with chicken coops, and drove back to the hatchery. On the way, he picked up George, who was hitchhiking to the city to look for a job. Brown was driving at seventy miles an hour down the highway. At an open intersection with another highway, Brown in his hurry ran a stop sign, striking another vehicle. The collision caused severe injuries to George. Immediately thereafter, the partnership was dissolved, and Brown was insolvent. Hanover and George each bring separate actions against Black as copartner for the alleged tort committed by Brown…53 Mavin Ltd operates in the Swan Valley in Australia where it grows grapes and produces wine. In June 2022, it anticipated that its assets may be impaired due to a glut on the market for grapes and an impending tax from the Australian government seeking to reduce binge drinking of alcohol by teenage Australians. The land is measured by Mavin Ltd at fair value. On 30 June 2022, the entity revalued the land to its fair value of $480 000. The land had previously been revalued upwards by $80 000. As a result of its impairment testing, Mavin Ltd calculated that the recoverable amount of the entity’s assets was $650 000. The carrying amounts of the assets of Mavin Ltd prior to adjusting for the impairment test and the revaluation of the land was as follows. Non-current assets Buildings 340 000 Accumulated depreciation on buildings (77 600) Land (at fair value 1/7/21) 512 000 Plant and equipment 581 600 Accumulated depreciation on plant (300 000) Goodwill 64 000 Trademarks — wine…Frank's Mini Mart sold a piece of equipment on an installment agreement, to a competitor on the other side of town. The other owner failed to make the payments and Frank had to repossess the equipment. What is Frank's gain or loss on repossessed personal property with a fair market value of $12,000 on the date of repossession, where the seller's basis in the installment obligation at the time of repossession is $7,500, and the costs of repossession were $500? (a) Loss of $500. (b) Gain of $4,000. (c) Gain of $4,500 (d) Gain of $5,000.
- Goldilocks Farm Company purchased dairy cattle at an auction for ₱300,000 on July 1, 2014. Cost of transporting the cattle to the company’s farm was ₱3,000 and the company would have to incur cost similar amount of transportation cost if it was to sell the cattle in the auction, in addition to the auctioneer’s fee of 2% of sales price. On December 31, 2014, after taking into account and location, the fair value of the biological assets had increased to ₱500,000 (that is, the market price including the cost of transporting the asset).What amount of gain or loss should the company include in the statement of comprehensive income due to the change in the fair value of the biological assets? a.₱193,000 b.₱196,000 c.₱200,000 d.₱209,000James Koontz agreed to purchase a Plymouth Sundance from Chrysler Credit Corporation (Chrysler) in exchange for sixty payments of $185.92. Koontz soon thereafter defaulted, and Chrysler notified Koontz that, unless he made the payments, it would repossess the vehicle. Koontz responded by notifying Chrysler that he would make every effort to make up missed payments, that he did not want the car repossessed, and that Chrysler was not to enter his private property to repossess the vehicle. A few weeks later, Chrysler sent the M & M Agency to repossess the vehicle. When he heard the repossession in progress, Koontz, dressed only in his underwear, came outside and yelled, “Don’t take it!” The repossessor ignored him and took the car anyway. Koontz did not physically challenge or threaten the repossessor. a. Discuss the arguments that Chrysler legally repossessed the automobile. b. Discuss the arguments that Chrysler illegally repossessed the automobile. c. Who should prevail?Halyu Corp., a domestic corporation, sold a parcel of land with the following details: The land has a Transfer Certificate of Title No. 109201. It is an agricultural property situated in the municipality of Lopez, Quezon province, with an area of 2,500 square meters. The land was acquired in 2004 for a purchase price of P500,000. At the time of the sale, the land's fair market value stands at P7,500,000, which aligns with the prevailing market values set by the Sanggunian. The agreed consideration for the sale is P6,700,000. How much is the documentary stamp tax from the sale? P56,250 P50,250 P112,500 P100,500
- Anton purchases a building on May 4, 2002, at a cost of $370,000. The land is properly allocated $40,000 of the cost (total cost $410,000). Anton sells the building on October 18, 2020, for $370,000. If an amount is zero, enter "0". a. What is the character of Anton's gain or loss on the sale if he uses the regular MACRS system and the building is an apartment building? Assume the accumulated depreciation at the time of the sale is $208,990. The total gain would be _____, of which ______is Section 1250 recapture and_______is unrecaptured Section 1250. Any balance is considered a long-term capital gain . b. What is the character of Anton's gain or loss on the sale if he uses the regular MACRS system and the building is an office building? Assume the accumulated depreciation at the time of the sale is $147,384. The total gain would be_____, of which _____ is Section 1250 recapture and ______ is unrecaptured Section 1250. Any balance is considered Section 1231 gainFairyland Company purchased dairy cattle at an auction for ₱300,000 on July 1, 2014. Cost of transporting the cattle to the company’s farm was ₱3,000 and the company would have to incur cost similar amount of transportation cost if it was to sell the cattle in the auction, in addition to the auctioneer’s fee of 2% of sales price. On December 31, 2014, after taking into account and location, the fair value of the biological assets had increased to ₱500,000 (that is, the market price including the cost of transporting the asset).What amount should the biological assets be initially recognized?Laura sold her office building to the accounting firm that bought her firm. Unfortunately, she had to repossess the building after less than a year. Choose the response that correctly states the amount of Laura's gain or loss on the repossessed real property, based on the following facts. The building had a fair market value of $54,000 on the date of repossession. The unpaid balance of the installment obligation at the time of repossession was $56,000, the gross profit percentage was 25%, and the costs of repossession were $600. (a) Loss of $13,400 (b) Loss of $11,400 (c) Gain of $11,400 (d) Gain of $13,400