Annood Company owns land that it purchased at a cost of $700,000 in 2018. The land's recoverable value fluctuate as follows (all amounts as of December 31): 2018, $680,000%3; 2019, $720,000. The journal entry to record impairment of the land in 2019 would be:
Q: On December 31, 2021, Purple Company sold a building, receiving as a consideration a P4,000,000…
A: Here in this question, we are required to calculate gain or loss from sale of asset. When any asset…
Q: On July 1, 2018, Apache Company sold a parcel of undeveloped land to a construction company for…
A: The given information is: On July 1, 2018, Apache Company, a real estate developer, sold a parcel of…
Q: During the 30th of June 2020, Hassen LLC sold a Non – Current Asset for OMR 40,000. The organization…
A: Depreciation reduces the carrying value each year.
Q: On January 1, 2021, Piling Company has Land, Building and Machinery with brought forward balances…
A: Total accumulated depreciation on December 31, 2021 = Total accumulated depreciation on January 01,…
Q: Chaz Corporation has taxable income in 2020 of $368,000 for purposes of computing the §179 expense…
A: Taxable Income:- When an individual earns income from the resources available, then it has to pay…
Q: If the company is using the cost model what amount of investment property should be reported in the…
A: Answer: option a. 5,087,250 statement showing total cost of investment including all capital charges
Q: On January 1, 2019, GUTZY Corporation purchased a tract of land (site number 101) with a dilapidated…
A: Fixed assets Fixed assets are also known as long-term assets and non-current assets. These are those…
Q: Maxine Corporation purchased an investment property on January 1, 2017 for a cost of $2,200,000. The…
A: Depreciation expense is related to the drop in the value of an asset periodically because of the…
Q: Cullumber Company owns delivery equipment that cost $53,800 and has accumulated depreciation of…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: Rover Inc. purchased land for $118,000,000 in 2011. At December 31, 2020, an appraisal determined…
A: "Since you have asked multiple questions, we will solve first question for you. if you want any…
Q: On December 31, 2021, Purple Company sold a building, receiving as a consideration a P4,000,000…
A: Present value of 1 for three period at 12% = 0.711780 Hence present value of P4,000,000 =…
Q: Chaz Corporation has taxable income in 2020 of $396,000 for purposes of computing the §179 expense…
A: Depreciation expense can be defined as a non-cash expenditure which represents the normal wear &…
Q: What is the maximum total depreciation deduction that Chaz may deduct in 2021? (Use MACRS Table 1,…
A: Depreciation is the reduction of the fair value of the asset over a period of time. It is the…
Q: VIOLET Company acquired an investment property on March 31, 2019 for ₱4,830,000. In addition,…
A: The amount to be capitalized for the property will be as follows: Amount to be capitalised= Amount…
Q: On December 31, 2020, MECH COMPAY’S only building has a carrying amount of P1,350,000. The net…
A: Impairment loss=1350000-950000=400000
Q: An entity purchased equipment on January 1, 2019 for 5,000,000. The equipment had a useful life of 5…
A: The Numerical has covered the concept of Depreciation Accounting. Double declining balance method:…
Q: At December 31, 2019, certain accounts included in the property, plant, and equipment section of…
A: a. Prepare a detailed analysis of the changes in each of the following balance sheet accounts…
Q: On April 1, 2018, the Apex Corporation sold a parcel of underdeveloped land to the Applegate…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Mickelson Inc. owns land that it purchased on January 1,2000, for $450,000. At December 31, 2017,…
A:
Q: Coopers Industries purchased a block of land for use in its activities on January 1, 2019, by paying…
A: Appraisal prices are a subset of fine manipulate costs. Appraisal fees are paid through agencies as…
Q: HMI Building Ltd. (HBL) purchased a piece of vacant land on March 1, 2020, for $345,000, and…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: In 2018, Lepanto Mining Company purchased property with natural resources for P28,000,000. The…
A: The financial transactions are initially recorded in the journal form.
Q: Cullumber Company owns delivery equipment that cost $53,800 and has accumulated depreciation of…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: On January 1, 2021, Alma Company showed land with carrying amount of P10,000,000 and building with…
A: Annual depreciation on building =P60,000,000 /20 years = P3,000,000 Life spent on January 1, 2021 =…
Q: ember 31, 2019, certain accounts included in the property, plant, and equipment section of Oriole…
A: Property, plant, and equipment consists of land, buildings, leasehold improvements, and equipment,…
Q: Michael Company acquired a depreciable asset at the beginning of 2020 at a cost of $30 million. On…
A: Lets understand the basics. As per IAS 36 "Impairment of assets", when carrying value of asset is…
Q: Omar Company owns a property which was revalued to $ 625,000 on 31 December 2018 with a revaluation…
A: From the info given in the question it seems that the company…
Q: During 2020, the Hackett Corporation purchased the property listed in the table below for use in its…
A: The Modified accelerated cost recovery system (MACRS) is used to depreciate most of the properties…
Q: VIOLET Company acquired an investment property on March 31, 2019 for ₱4,830,000. In addition,…
A: Investment value:-It is an asset for the company where one person securely invests the amount in one…
Q: On January 1, 2020, Diluc acquired land for a cost of P3,000,000 and a building costing P6,000,000.…
A: Land is not a depreciable asset , therefore no depreciation will be charged on Land . As per…
Q: Gia Corporation purchased machinery on January 1, 2019 for ₱840,000. The company used the…
A: 1. It has to be handled prospectively, therefore there is no cumulative effect on tax. Answer is…
Q: On July 1, 2018, Apache Company, a real estate developer, sold a parcel of land to a construction…
A: Given information is: On July 1, 2018, Apache Company, a real estate developer, sold a parcel of…
Q: Nona Co. purchased land worth P20,000,000 on January 1, 2021. The company uses the revaluation model…
A: Impairment of assets means reducing the book value of assets when carrying amount is more than…
Q: On January 1, 2019, Sali Inc. purchased land with a cost of $400,000. The Company uses a revaluation…
A: Revaluation surplus for 2019 = Fair value of the assets at the end of 2019 - Cost of the assets =…
Q: Nona Co. purchased land worth P20,000,000 on January 1, 2021. The company uses the revaluation model…
A: Under revaluation model, Property plant and equipment is measured at an estimated fair value of the…
Q: In 2019, Lepanto Mining Company purchased property with natural resources for P28,000,000. The…
A: The question is based on the concept of business transaction analysis.
Q: in November 4, 2019, Blue Company acquired an asset (27.5-year residential real property) for…
A:
Q: DEE Inc. purchased an equipment on March 31, 2019. The selling price of the asset is equal to its…
A:
Q: On 1/1/18, Cumberland Corp. purchased a machine for $60,000. The machine cost Cumberland $2,800 for…
A: Depreciation is the allocation of cost of asset over the useful life of the asset. It can be charged…
Q: On March 10, 2020, Night Corporation purchased $2,400,000 of machinery and equipment (7-year…
A: Given that, Night corporation purchased on March 10, 2020 7-year Machine and Equipment = $2400000…
Q: VIOLET Company acquired an investment property on March 31, 2019 for ₱4,830,000. In addition,…
A: Initial Recognition of Investment Property The Investment Property is initially measured at Cost…
Q: The Salient company uses the revaluation model for its building. It acquired a building on January…
A: Revaluation of fixed means to adjust the carrying value of assets with changes in fair market value.
Q: Robertson Company had purchased an equipment on January 1, 2019 for P 4,800,000. The entity used the…
A: It is pertinent to note that a change in accounting estimate needs to be accounted for…
Q: Keil Company has a single investment property which had an original cost of P5,800,000 on January 1,…
A: In case of Fair value model, assets is measured at fair value and any change in fair value during…
Q: On July 1, 2019, AXS COMPANY acquired an asset for P1,312,500. The asset is being depreciated over a…
A: solution: given: purchase price (cost ) =P1312500 useful life =6 years residual value…
Q: The Salient company uses the revaluation model for its building. It acquired a building on January…
A: 1. 2018, and 2019, depreciation expenses = (450,000 - 50,000)/ 25 = $16,000 per year Accumulated…
Q: ,470,000 Computer equipment February 10 455,000 Office building April 2 570,000 Total $…
A: Depreciation:- Depreciation referred as decreasing in the value of an asset on a regular basis until…
Q: Jasmin Company purchased an investment property on January 1, 2017 at a cost of P2,200,000. The…
A: Cost of investment property = 2200000 Use ful life = 40 years Deprecation for 2 years =2200000/40…
Step by step
Solved in 3 steps
- On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.
- Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?Nona Co. purchased land worth P20,000,000 on January 1, 2021. The company uses the revaluation model in accounting for its PPE. On December 31, 2021, an independent appraiser valued the land at P43,000,000. But on December 31, 2022, the land had a fair value of P8,000,000. How much revaluation deficit/impairment loss should be recognized in the income statement on December 31, 2022? (No need to put "+" or "", just place absolute value)Nona Co. purchased land worth P20,000,000 on January 1, 2021. The company uses the revaluation model in accounting for its PPE. On December 31, 2021, an independent appraiser valued the land at P43,000,000. But on December 31, 2022, the land had a fair value of P8,000,000. How much revaluation deficit/impairment loss should be recognized in the income statement on December 31, 2022?
- The following information has been provided about an asset: Accumulated depreciation (as at June 30, 2021): $59,650Original asset cost: $147,500If the asset is sold on July 1, 2021 for $74,500, there would be a: Question 4 options: Loss of $14,850 Gain of $14,850 Loss of $13,350 Gain of $13,350Omar Company owns a property which was revalued to $ 625,000 on 31 December 2018 with a revaluation gain of $250,000 being recognized as other comprehensive income and recorded in the revaluation surplus. At 31, December 2020 the property had a carrying amount of $575,000 but the recoverable amount of the property was estimated at only $250,000. 1- What is the amount of impairment? 2- How the revaluation and the impairment should be treated in the financial statements?Waterway Ltd. owns land that it purchased at a cost of ¥464,000 in 2020. The company chooses to use revaluation accounting to account for the land. The land's value fluctuates as follows (all amounts in thousands as of December 31): 2020, ¥522,000; 2021, ¥417,600; 2022, ¥446,600; 2023, ¥475,600; and 2024, ¥533,600. Complete the following table. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Value at December 31 2020 2021 2022 2023 2024 ¥ Other Comprehensive Income 58,000 (58,000) 0 11,600 58,000 Accumulated Other Comprehensive Income 58,000 0 0 11,600 69,600 Recognized in Net Income 0 (46,400) 29,000 17,400 0
- Comprehensive At December 31, 2018, certain accounts included in theproperty, plant, and equipment section of Townsand Company's balancesheet had the following balances: LandBuildingsLeasehold improvementsMachinery and equipment $100,000800,000500,000700,000 During 2019, the following transactions occurred: 1. Land site number 621 was acquired for $1,000,000. Additionally,to acquire the land, Townsand paid a $60,000 commission to a realestate agent. Costs of $15,000 were incurred to clear the land.During the course of clearing the land, timber and gravel were recovered and sold for $5,000.2. A second tract of land (site number 622) with a building wasacquired for $300,000. The closing statement indicated that theland value was $200,000 and the building value was $100,000.Shortly after acquisition, the building was demolished at a cost of $30,000. A new building was constructed for $150,000 plus the following costs: Excavation feesArchitectural design feesBuilding permit fee…Cake, Inc. purchased a machinery on January 1, 2020, at a cost of P1,250,000. It is being depreciated using the straight-line method over its projected useful life of 8 years. On December 31, 2021, the asset's fair value was P1,125,000. Accordingly, an entry was made on that date to recognize the revaluation surplus. Revaluation is recorded maintaining the proportionate relationship between the asset account and accumulated depreciation. It is the company policy to transfer a portion of revaluation surplus to retained earnings every period. What is the amount of revaluation surplus reported in equity on December 31, 2022?*At December 31, 2019, certain accounts included in the property, plant, and equipment section of Reagan Company’s balance sheet had the following balances. Land Buildings Leasehold improvements Equipment $230,000 890,000 660,000 875,000 During 2020, the following transactions occurred. 1. Land site number 621 was acquired for $850,000. In addition, to acquire the land Reagan paid a $51,000 commission to a real estate agent. Costs of $35,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $13,000. 2. A second tract of land (site number 622) with a building was acquired for $420,000. The closing statement indicated that the land value was $300,000 and the building value was $120,000. Shortly after acquisition, the building was demolished at a cost of $41,000. A new building was constructed for $330,000 plus the following costs. Excavation fees Architectural design fees Building permit fee Imputed…