Sale of an capital assets is subject to
Q: Discuss when the interest capitalization period begins and ends for assets constructed for a…
A: Capitalization of Borrowing Cost: When it is likely that borrowing costs will result in future…
Q: Depreciation represents a __________ in the value of fixed assets.
A: Fixed assets are those type of assets which are being held by the business for longer period of…
Q: The principal difference between two concepts of capital maintenance is the treatment of the effects…
A: CAPITAL: Capital refers to the assets used for the production of goods and services. A typical…
Q: The fair value of net assets is:
A: Given information is: Fair values: Cash = OMR 80,000 Receivables (Net) = OMR 90,000 Liabilities =…
Q: What is the classification of long term assets? Explain them.
A: Long-term assets: Long – term assets are those assets that are generally held by a company for more…
Q: The depreciation procedures that apply to the main kinds of depreciable assets in general?
A: Depreciation is an accounting method for allocating the cost of a tangible or physical asset over…
Q: How can you explain working capital management? Explain different policies/approaches to manage…
A: The working capital is the capital that is used in the business for successful running of day to day…
Q: Required Determine the capitalized cost of the asset.
A: Step 1 Hello. Since your question has multiple parts, we will solve first question for you. If you…
Q: Identify the items included in the cost of a self-constructed asset and determine the amount of…
A: The self-constructed asset costs included in the asset cost are as follows direct materials direct…
Q: The book value of an asset is computed as the asset's _____.
A: The assets can be defined as fixed assets and current assets.
Q: Sale of an capital assets
A: Sale of an capital assets is subject to CAPITAL GAIN.
Q: epayment of grant related to an asset?
A: The asset is an economic resource that a corporation or business entity owned for its economic…
Q: When nonmonetary assets are exchanged, a company records the cost of the nonmonetary asset acquired…
A: The cost of the nonmonetary asset acquired will be explained:
Q: Explain the difference between tangible and intangible long-lived, revenue-producing assets.
A: Tangible assets are those assets which appear in the physical form and it is measurable. Assets like…
Q: What is a capital asset? Why do we care about the treatment of assets as either capital or…
A: Capital assets is an assets which are generally not meant for sale but for investment purpose which…
Q: What are the Required disclosures about each major class of capital assets?
A: Capital asset refers to the assets with a longer useful life i.e. more than a year and is not…
Q: one of the following is a definition of asset: a- a present economic resource controlled by the…
A: An asset is a resource with economic value that a firm controls in lieu of that it will provide a…
Q: When disposing of an available-for-sale investment, where is the gain or loss on disposal reported…
A:
Q: What items are excluded from the statutory definition of Capital Asset? Why?
A: Capital assets are assets which may or may not connect with the business and include all tangible or…
Q: Distinguish between the accounting for capital expenditures and revenue expenditures.
A: Fixed Assets: It refers to the long-term assets having a useful life of more than a year which is,…
Q: ntangible assets can only be measured using the revaluation model if the acquiring entity:
A: The Answer:
Q: The types of assets that qualify for interest capitalization are Assets that are ready for their…
A: Interest capitalization means the amount of interest which is added in the cost of asset instead of…
Q: Define capital gain (loss)
A: Whenever an asset is sold, the seller incurs either a profit or a loss. The asset may be a real…
Q: Real property held for investment is a capital asset. True or false
A: Real Estate Property Held for Investment is A capital Assets. Real estate property held for…
Q: The amount to be capitalized should be:
A: Answer: Option a.
Q: Discuss the nature of acquiring fixed assets?
A: Fixed assets are one of the major investments of a company and this covers the huge part of the…
Q: What document shows when fixed assets are fully depreciated?
A: Depreciation: Depreciation means decrease in the value of tangible asset. Depreciation is a…
Q: -Select- assets include the rights established by law or contract to the future use of property…
A: According to the IFRS, intangible assets are identifiable, non-monetary assets without physical…
Q: Access the glossary (“Master Glossary”) to answer the following. a. What does it mean to…
A: Answer: To capitalize an item means to use the item for the long term in the business and disclose…
Q: Describe the Amortization of Intangible Assets.
A:
Q: acquiring capital assets for future use is one type of capital expenditure proposal. true or false
A: Capital expenditure (or capex) refers to those expenditures that are incurred by a company for…
Q: capital expenditure or a revenue expenditure.
A: Answer – Capital expenditures are those expenditure which improves the performance of assets and…
Q: Why is the cost of a lump-sum purchase allocated to the individual assets acquired?
A: It is necessary to allocate a lump sum purchase to individual assets in order to record a fair…
Q: What are the depreciation processes that apply to the most common types of depreciable assets in the…
A: Depreciation is an accounting word that refers to the process of spreading the cost of a tangible or…
Q: compare ordinary assets from capital assets
A: Ordinary Assets:- A per tax code Ordinary Assets are the assets which are held by the tax payer for…
Q: Define the term capitalize.
A: Plant Assets: Plant assets are referred to the long-term and tangible assets that business use in…
Q: Capital expenditures incurred subsequent to purchase of property assets increase total assets.…
A: Capital expenditures are incurred to make the property asset more efficient. It increases the…
Q: Distinguish between the “cost model” and “fair value” model of accounting for investment property.
A: Investment property is land or a building (including a part of a building) or both that is: →held to…
Q: Describe the terms of Contingent Assets with examples.
A: Contingent Asset are the assets which have not yet been realized, but they may realize upon…
Q: Define the term the depreciable life of the asset?
A: Depreciation is an accounting process through which allocation of an asset’s cost during its useful…
Q: Under IFRS, the recoverable amount of an asset is
A: Introduction:- Impairment loss arise when the amount by which the carrying amount of an asset…
Q: Explain the difference between ordinary, capital and section 1231 assets
A: A real property can be categorized as an ordinary, capital or 1231 asset based on for what purpose…
Step by step
Solved in 2 steps
- Which option is the correct definition of tax base? Select one: a. Tax base is the amount the asset or liability is recorded at in the accounting records. b. Tax base is a comparing the balance sheet derived using accounting rules with balance sheet that would be derived from taxation rules c. Tax base is the recognition of assets and liabilities in the balance sheet based on the differences between accounting and tax values of assets and liabilities. d. Tax base is defined as the amount that is attributed to an asset or liability for tax purposes.14. As distinguished from deductions, tax credit is a. A deduction from gross sales/receipts b. A deduction from gross income c. A deduction on tax due d. A deduction from other incomeWhat is the taxable base for federal income taxes? a. Gross income b. Net worth c. Total assets d. Total debt
- This refers to the process of taxation to determine the amount of tax based on existing tax laws. a. Levying b. Imposition C. Assessment D. Collection2. Creditable deductible input tax includes the following, except, a. Presumptive, transitional, and standard b. Withholding VAT C Advance payment of VAT d. Vat paid on sale of goodsAccounting profit is O A. The The profit or loss is for a period determined before deducting in accordance tax expense O B. The profit or loss is for a period determined in accordance with tax law C. The profit or loss after for a period after deducting tax expense O D. The profit or loss after current tax expense determined accordance with tax law
- Property taxes are considered: a. imposed tax revenues. b. derived tax revenues. c. voluntary nonexchange transactions. d. exchange transactions.rent income, in general, is subject toa. final income taxb. regular income taxc. capitals gain taxd. donor's taxI. Compensation and business income are returnable income that are subject to final income tax. II. When a taxable income is subjected to final tax, that income shall be excluded in the computation of taxable net income subject to basic income tax under the graduated tax rate. a. TT b. FF c. TF d. FT
- 1. In computing the CURRENT tax asset or CURRENT tax liability, which tax rate is used? a. Current tax rate b. Future enacted tax rate c. Average tax rate d. Effective tax rate 2. In computing the DEFERRED tax asset or liability, which tax rate is used? a. Current tax rate b. Estimated future tax rate c. Enacted future tax rate d. Prior tax rate 3. It is the sum of the amount of income tax payable and deferred tax liability related to accounting income. a. Tax expense reported in the income statement b. Current tax expense c. Deferred tax expense d. Deferred tax benefitRequirements: Compute for the following: a Income tax expense, Current tax expense and Deferred tax a. expense/benefit b. Current tax liability c Deferred tax liability and Deferred tax asset d. Provide the journal entry. C.Indicate the type of Deferred Tax account created by Prepaid Expenses and Accrued Revenues, respectively. Select one: O a Asset Asset Ob. Liability, Liability Oc Asset, Liability O d. Liability, ASset