Arbitration Exercise Awards

ANSWER ONLY JOURNAL ENTRIES! ANSWER ONLY JOURNAL ENTRIES! ANSWER ONLY JOURNAL ENTRIES! Question: If the sales price is P1,000,000 which is equal to fair value compute the following under the buyer-lessor accounting Gross Investment Net Investment Unearned Interest Income Journal entries on January 1, 20x1

Please answer part b,c,d and include workings on how you derive the amount. Please ensure that it is answered according to IFRS accounting standards.

6. Entity X sells a building to Entity Y and simultaneously leases Sale and leaseback 6. Entity X sells a building to Entity Y and simultaneously it back. Relevant information follows: P2,000,00 Cash selling price of building Fair,value of building Carrying amount of building Annual rent payable at the end of each year 1,800,00 1,000,00 120,000 18 years Lease term 4.5% Implicit interest rate (readily determinable to Entity X) The terms and conditions of the transaction are such that the transfer of the building qualifies as a sale under PFRS 15. Requirements: Prepare the journal entries in the books of Entity X (seller-lessee) and Entity Y (buyer-lessor) on lease commencement. (Adapted - IFRS 16. IE11)

Please answer part b,c,d

Boot Realty LLC receives cash of $75,000 upon completing a Section 1031 exchange. The cash received will be treated as: A long-term gain. Taxable. Reduction in the basis of the replacement property. A deferment until the replacement property is sold. Closing costs payment.

Please answer part a, b,c, and show all workings.

Saisaki Corporation grants a franchise to Mity for an initial franchise fee of P 1,000,000. The agreement provides that Saisaki has the option within one year to acquire franchisee’s business, and it seems certain that Saisaki will exercise this option. On Saisaki’s books, how should the initial fee be recorded? Deferred and treated as reduction in Saisaki investment when the option is exercised Realized revenue Extraordinary revenue Deferred revenue to be amortized

Which of the following statements is not applicable to contract acquisition costs under ASC Topic 606 guidance for revenue recognition?   Incremental costs of acquiring a contract must be capitalized and amortized over the life of the contract.   Costs that would be incurred regardless of whether a contract is obtained are not capitalized.   The capitalization requirement is subject to a practical expedient.   Costs must be capitalized even if the amortization period is one year or less.

A buyer working with QRS Realty wants to make an offer on a property. To save time, the buyer makes a verbal offer of $210,000 and the seller agrees. The offer is: -invalid because it does not include a closing date-unenforceable because it is not in writing-voidable because the licensee did not review the offer-unilateral because the contract is not exclusive

Show me the solution of no. 9 and 10 thanksss...

what amount of amortization should be recognized in 2023?

You Company owns land and building classified as investment property .  The land and building is being leased out under operating leases. The company uses the fair value model for all its other investment property. Data relating to the land and building follows:                                     Cost                FV Dec. 31, 2020      FV Dec. 31, 2021Land  --------        P 10,000,000   -----   P14,000,000    -------P15,500,000Building -----           20,000,000  ------      9,000,000    --------   8,500,000                                           On December 31, 2021, the company decided to use the land and building for its operations.  At what amount should the land and building be recorded on December  31, 2021?

Required information [The following information applies to the questions displayed below.] While completing undergraduate school work in information systems, Dallin Bourne and Michael Banks decided to start a technology support company called eSys Answers. During year 1, they bought the following assets and incurred the following start-up fees: Year 1 Assets Purchase Date Basis Computers (5-year) Office equipment (7-year) Furniture (7-year) Start-up costs October 30, Year 1 October 30, Year 1 October 30, Year 1 October 30, Year 1 $16,400 10,000 5,800 19,520 In April of year 2, they decided to purchase a customer list from a company providing virtually the same services, started by fellow information systems students preparing to graduate. The customer list cost $12,520, and the sale was completec on April 30. During their summer break, Dallin and Michael passed on internship opportunities in an attempt to really grow their business into something they could do full time after…

11:39 Module1_PPE and .. Problem 28-13 (AICPA Adapted) In 2019, Lepanto Mining Company purchased property with natural resources for P28,000,000. The property had a residual value of P5,000,000. However, the entity is required to restore the property to the original condition at a discounted amount of P2,000,000. In 2019, the entity spent P1,000,000 in development cost . and constructed a building on the property costing P3,000,000. The entity does not anticipate that the building will have utility after the natural resources are removed. In 2020, an amount of P1,000,000 was spent for additional development on the mine. The tonnage mined and estimated remaining tons are: Tons extracted Tons remaining 2019 2020 3,000,000 3,500,000 10,000,000 7,000,000 2,500,000 2021 1. What amount should be recognized as depletion for 2020? a. 6,900,000 b. 9,600,000 c. 8,100,000 d. 8,400,000 2. What amount should be recognized as depletion for 2021? a. 10,150,000 b. 11,025,000 c. 15,750,000 d. 9,450,000

In 20x1, Devin Co. enters into a contract to construct a building for a customer. Devin Co. identifies its peromance obligation to be satisfied over time. Devin CO. measures its progress on the contract based on ccosts incurred. The contract price is P10M. Devin has an unconditional right to all billings made in accordance with the billing schedule stated in the contract. Information on the construction is provided below:                                                                     20x1             20x2             20x3 a. Contract costs incurred to date          3,150,000     5,680,000     7,120,000 b. Biliings per year                                  4,000,000     5,000,000     1,000,000 c. Collections on billings per year           3,600,000     4,500,000     1,900,000   Requirements: a. Compute for the gross profits, revenues and costs of construction in 20x1, 20x2, 20x3, respectively. b. Provide the journal entries under (i) traditional accounting and (ii) PFRS 15. c.…

In 20x1, Devin Co. enters into a contract to construct a building for a customer. Devin Co. identifies its peromance obligation to be satisfied over time. Devin CO. measures its progress on the contract based on ccosts incurred. The contract price is P10M. Devin has an unconditional right to all billings made in accordance with the billing schedule stated in the contract. Information on the construction is provided below:                                                                     20x1             20x2             20x3 a. Contract costs incurred to date          3,150,000     5,680,000     7,120,000 b. Biliings per year                                  4,000,000     5,000,000     1,000,000 c. Collections on billings per year           3,600,000     4,500,000     1,900,000 d. Estimated Costs to complete              3,850,000     1,420,000 Requirements: a. Compute for the gross profits, revenues and costs of construction in 20x1, 20x2, 20x3, respectively. b. Provide the journal…

Solution for Case 2

46

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Define the following:  Condition  Civil loss  Reciprocal obligations  Pure obligation  Potestative condition  Problems Explain or state briefly the rule or reason for your answer. 1. D (debtor) borrowed P20,000 from C (creditor) payable on or before August 30. Before the arrival of the due date, C agreed to the promise of B to pay C if B wants. Can C insist that B pay not later than August 30? 2. Suppose in the same problem, D obliges himself to pay C P10,000 after C has paid his obligation to T. Is the obligation valid? 3. S (seller) agreed to sell to B (buyer) a specific car for P200,000, delivery of the car and the payment of the price to be made on June 15. Suppose S delivered the car on June 15 but B failed to pay the price, what are the remedies of S? 4. S sold a parcel of land to B for P240,000 payable in installments of P20,000 a year. The land was delivered to B who obtained ownership thereof. After B had paid P200,000, he could no longer continuing paying in view of…

es aw Exercise 15-27 (Algo) Lessee; lessee guaranteed residual value [LO15-2, 15-6] On January 1, 2024, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2027, at which time possession of the leased asset will revert back to Aqua. . The equipment cost Aqua $421,168 and has an expected economic life of five years. • Aqua and Maywood expect the residual value at December 31, 2027, to be $58,000. • Negotiations led to Maywood guaranteeing a $82,000 residual value. . Equal payments under the lease are $116,000 and are due on December 31 of each year with the first payment being made on December 31, 2024. . Maywood is aware that Aqua used a 5% interest rate when calculating lease payments. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1, FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. & 2. Prepare the appropriate entries for Maywood on January 1, 2024 and December 31, 2024, related to the lease.…

Q.3.

An entity is a dealer in equipment and uses leases to facilitate the sale of its product. The entity expects a 12% return. At the end of the lease term, the equipment will revert to the lessor. On January 1, 2016, an equipment is leased to a tessee with the following information: Cost of equipment to the entity Fair value of equipment Residual value - unguaranteed 3,500,000 5,500,000 600,000 200,000 900,000 8 years 12% Initial direct cost Annual rental payable in advance Useful life and lease term Implicit interest rate PV of 1 at 12% for 8 periods PV of an ordinary annuity of 1 at 12% for 8 periods PV of an annuity due of 1 at 12% for 8 periods First lease payment 17) 0.40 4.97 5.56 January 1, 2016 What is the gross investment in the lease? a. 7,800,000 b. 7,200,000 C. 6,600,000 d. 6,900,000 What is the net investment in the lease? 18) a. 5,004,000 b. 5,244,000 C. 5,500,000 d. 5,740,000 What is the total financial revenue? 19) a. 2,196,000 b. 2,796,000 Ç. 2,556,000 d. 1,956,000 What…

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