Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 13, Problem 13.3.6E
To determine
Introduction: Interim reporting is made in between the fiscal year. It is made before the completion of fiscal year in mostly public corporation for taking various decisions for the remaining period. Mostly quarterly and half yearly report is prepared.
To choose: The correct answer.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
H7.
On January 1, 2016, Wheeler, Inc. purchased some equipment for $3,900. The equipment had an estimated life of five years and an expected residual value of $200. On July 1, 2018, the equipment was sold for $1,000. Wheeler uses straight-line depreciation. What was the amount of the loss or gain recognized in the sale?
Group of answer choices
$1,000 gain
$1,850 gain
$1,050 loss
$3,900 loss
Please show all step by step calculation
WITH COMPUTATION-SOLUTION
65. On December 31, 2019, an entity sold an equipment with an estimated remaining useful life of 10 years. At the same time, the entity leased back the equipment for 2 years. Sale price at above fair value 7,500,000 Fair value of equipment on date of sale 6,000,000 Carrying amount of equipment 5,000,000
What amount of gain should be reported in the income statement for 2019?a. 2,500,000b. 1,500,000c. 1,000,000d. 1,750,000
WITH SOLUTION /COMPUTATION
64.On December 31,2019, an entity sold a machine with useful life of 10 years to another entity andsimultaneously leased it back for two years at annual rental of P360,000.
Sale price at fair value 3,600,000
Caryingamount 3,300,000
What amount of revenue from sale of the machine should be reported in 2019?
150,000
300,000
360,000
180,000
Chapter 13 Solutions
Advanced Financial Accounting
Ch. 13 - Prob. 13.1QCh. 13 - Prob. 13.2QCh. 13 - What are the three 10 percent significance tests...Ch. 13 - Prob. 13.4QCh. 13 - A company has 10 industry segments, of which the...Ch. 13 - Prob. 13.6QCh. 13 - Prob. 13.7QCh. 13 - Prob. 13.8QCh. 13 - Prob. 13.9QCh. 13 - Prob. 13.10Q
Ch. 13 - Prob. 13.11QCh. 13 - Prob. 13.12QCh. 13 - Prob. 13.13QCh. 13 - Prob. 13.14QCh. 13 - Maness Company made a change in accounting for its...Ch. 13 - Prob. 13.1CCh. 13 - Prob. 13.2CCh. 13 - Prob. 13.3CCh. 13 - Prob. 13.7CCh. 13 - Prob. 13.8CCh. 13 - Prob. 13.9CCh. 13 - Reportable Segments Data for the seven operating...Ch. 13 - Prob. 13.2.1ECh. 13 - Prob. 13.2.2ECh. 13 - Prob. 13.2.3ECh. 13 - Prob. 13.2.4ECh. 13 - Prob. 13.2.5ECh. 13 - Prob. 13.2.6ECh. 13 - Prob. 13.2.7ECh. 13 - Prob. 13.2.8ECh. 13 - Prob. 13.2.9ECh. 13 - Prob. 13.2.10ECh. 13 - Prob. 13.2.11ECh. 13 - Prob. 13.3.1ECh. 13 - Prob. 13.3.2ECh. 13 - Multiple-Choice Questions on Interim Reporting...Ch. 13 - Prob. 13.3.4ECh. 13 - Prob. 13.3.5ECh. 13 - Prob. 13.3.6ECh. 13 - Prob. 13.3.7ECh. 13 - Prob. 13.3.8ECh. 13 - Prob. 13.3.9ECh. 13 - Prob. 13.3.10ECh. 13 - LIFO Liquidation During July, Laesch Company,...Ch. 13 - Inventory Write-Down and Recovery Cub Company, a...Ch. 13 - MutiniedChoice Questions on Income Taxes at...Ch. 13 - Prob. 13.6.2ECh. 13 - Prob. 13.6.3ECh. 13 - MutiniedChoice Questions on Income Taxes at...Ch. 13 - Prob. 13.6.5ECh. 13 - Prob. 13.6.6ECh. 13 - Prob. 13.7ECh. 13 - Prob. 13.8ECh. 13 - Prob. 13.9ECh. 13 - Prob. 13.10ECh. 13 - Prob. 13.11ECh. 13 - Prob. 13.12ECh. 13 - Prob. 13.13PCh. 13 - Prob. 13.14PCh. 13 - Interim Income Statement Chris Inc. has...Ch. 13 - Prob. 13.17PCh. 13 - Prob. 13.20PCh. 13 - Matching Terms Match the items in the left-hand...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 5 On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $15 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information. 2 points eBook Print References The book value of the assets of the segment at the time of the sale was $12 million. The loss from operations of the segment during 2024 was $4.5 million. Pretax income from other continuing operations for the year totaled $6.6 million. . The income tax rate is 25%. . · ● Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4. CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2024 Income from continuing…arrow_forward5. On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $15 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information. The book value of the assets of the segment at the time of the sale was $12 million. The loss from operations of the segment during 2024 was $4.5 million. Pretax income from other continuing operations for the year totaled $6.6 million. The income tax rate is 25%. Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4.arrow_forwardBarton and Barton Company (B&B) purchased construction equipment for $57 million. The equipment was placed in service at the beginning of 20x1. Management estimated the equipment's residual value to be $2 million and used the sum-of-the-years’-digits method to depreciate the equipment over a 10-year life. At the beginning of 20x4, B&B decided to change to the straight-line method. Ignoring income taxes, prepare the journal entry relating to the equipment for 20x4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5 and 5,000,000 should be entered at 5.0).)arrow_forward
- Entity A acquires equipment on January 1, 20x1. Information on costs is as follows: Purchase price, gross of P10,000 trade discount 800,000 Non-refundable purchase taxes 20,000 Delivery and handling costs 40,000 Installation costs 30,000 Present value of decommissioning and restoration costs 10,000 1.) How much is the initial cost of the equipment? A. P 890,000 B. P 820,000 C. P 900,000 D. P 870,000arrow_forwardHilo Company has land that cost $350,000 but now has a fair value of $500,000. Hilo Company decides to use the revaluation method specified in IFRS to account for the land. Which of the following statements is correct? a. Hilo Company must continue to report the land at $350,000. b. Hilo Company would report a net income increase of $150,000 due to an increase in the value of the land. c. Hilo Company would debit Revaluation Surplus for $150,000. d. Hilo Company would credit Revaluation Surplus by $150,000.arrow_forwardQuestion. On June 28 Lexicon Corporation acquired 100% of the common stock of Gulf & Eastern. The purchase price allocation included the following items: $4 million, patent; $3 million, developed technology; $2 million, in-process research and development; $5 million, goodwill. Lexicon’s policy is to amortize intangible assets using the straight-line method, no residual value, and a five-year useful life. What is the total amount of expenses (ignoring taxes) that would appear in Lexicon’s income statement for the year ended December 31 related to these items?arrow_forward
- On January 1, 2021, Gleason Company purchased new machinery for $ 333,000. The new machine was expected to last six (6) years and be sold for parts (after those six years) for$ 60,000. Assume that management sells the equipment for $ 166,500 on December 31, 2023. What amount would be reported as gain or loss on the sale if management applied straight-line depreciation? a. $ -0-. b. $ 196,500 Gain. c. $ 30,000 Gain. d. $ 30,000 Loss. e. None of the above.arrow_forwardOn October 1, 2019 Atkins Corporation, a C corporation, sold a commercial office building for $900,000 that it was renting to numerous commercial businesses. Atkins Corporation purchased the office building in 2008 for $840,000 and it took $240,000 of modified accelerated cost recovery (MACRS) deductions on the office building. What is the amount and character of the gain that is recognized by Atkins Corporation on the office building sale in 2019? Question 4 options: a) $240,000 of Section 1245 gain and $60,000 of Section 1231 gain. b) $240,000 of unrecaptured Section 1250 gain and $60,000 of Section 1231 gain. c) $48,000 of Section 291 ordinary income and $252,000 of Section 1231 gain. d) $60,000 of Section 291 ordinary income and $240,000 of Section 1231 gain. e) $300,000 of Section 1231 gain.arrow_forwardDLW Corporation acquired and placed in service the following assets during the year: Asset Date Acquired Cost Basis Computer equipment 3/11 $ 18,000 Furniture 3/7 $ 23,500 Commercial building 9/15 $ 317,000 Assuming DLW does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Problem 10-47 Part a (Algo) a. What is DLW's year 1 cost recovery for each asset?arrow_forward
- Additional information: . The building acquired had a fair value of P450,000 while the land was currently appraised at P1,800,000 • P50,000 of the option money paid were for properties not acquired. . The executives had no participation on the remodeling of the building The property taxes were for the 2020 calendar year. How much is the cost of land? A. 1,992,320 B. 1,512,000 C. 2,288,000 D. 1,856,320arrow_forwardPlease provide solutions and explaination. Thank you. 1. On January 1, 20x1, NURTURE REAR Co. acquired a building with an estimated useful life of 10 years and residual value of ₱400,000 for a total cost of ₱4,000,000. The fair value of the building on January 1, 20x1 is ₱4,800,000 while the fair value on December 31, 20x1 is ₱5,200,000. NURTURE estimates that if the building is sold currently on December 31, 20x1, costs to sell amount to ₱200,000. NURTURE uses the straight line method in depreciating its PPE. NURTURE uses the fair value model for its investment properties. The year-end adjusting entry will include: a. 360,000 depreciation b. 400,000 unrealized gain c. 200,000 unrealized gain d. 1,200,000 unrealized gainarrow_forwardOther Additional Information:- iii) Plant and equipment disposed of during the year had a net book value of £11,000 (cost £45,000). The loss on disposal of £6,000 is included in the cost of sales.iv) All land was revalued on 31 March 2020, the decrease in value of £65,000 was deducted from the revaluation reserve. v) The cost of sales includes £15,000 for development expenditure amortized during the year and £10,000 for impairment of the purchased brand name. vi) On 1 November 2019, Robinson Plc issued £1 equity shares at a premium. No other finance was raised during the year.vii) Robinson Plc paid a dividend during the year.viii) Other provisions relating to legal claims made against Robinson Plc during the year ended 31 March 2020. The amount provided is based on legal opinion on 31 March 2020 and is included in the cost of sales. Required:With reference to IAS 7, Statement of Cash Flows:a) Prepare a statement of cash flows, using the indirect method, for Robinson Plc for the year…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning
Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning
Depreciation -MACRS; Author: Ronald Moy, Ph.D., CFA, CFP;https://www.youtube.com/watch?v=jsf7NCnkAmk;License: Standard Youtube License