. How much is the gain on leaşeback recorded on January 1, 2021?* For numbers 3 to 5, please refer to the following problem: On January 1, 2021, GOBBLEGUT Corp. sold machinery costing P600,000 with an accumulated depreciation of P250,000 for P1,000,000 which is also the fair value. The sale meets the requirements of PFRS 15. The remaining life of the machine is 5 years. GOBBLEGUT Corp. immediately leased the machine back for P200,000 yearly, payable in advance for 5 years. The implicit rate of interest is 12%. Round off PV factors to two decimal places. a. 808,000 b. 650,100 c. 124,800 d. 457,460 How much is the depreciation expense of right-of-use machinery for

. How much is the gain on leaşeback recorded on January 1, 2021?* For numbers 3 to 5, please refer to the following problem: On January 1, 2021, GOBBLEGUT Corp. sold machinery costing P600,000 with an accumulated depreciation of P250,000 for P1,000,000 which is also the fair value. The sale meets the requirements of PFRS 15. The remaining life of the machine is 5 years. GOBBLEGUT Corp. immediately leased the machine back for P200,000 yearly, payable in advance for 5 years. The implicit rate of interest is 12%. Round off PV factors to two decimal places. a. 808,000 b. 650,100 c. 124,800 d. 457,460 How much is the depreciation expense of right-of-use machinery for

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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Under leases
Under leases
On December 31, 2024, Causholi Corporation sold a machine to Monika Company and simultaneously leased it back for one year. Pertinent information at this date follows: Sales price Carrying amount Present value of lease payments ($9,000 for 12 months at 12%) Machine's estimated remaining useful life In Causholi's December 31, 2024 income statement, the gain recognized from the sale of this machine should be: Multiple Choice $337,600. $4,167. $0. $50,000. $940,000 890,000 102,300 12 years
On December 31, 2020, Grains Company sold a truck to Bryan Company and simultaneously leased it back for one year. The entity provided the following information: Sales price is P360,000. Carrying amount is P330,000. PV of reasonable lease rentals at 30,000 for 12 months @ 12% is P341,000. Estimated remaining useful life of the asset is 12 years. In the income statement for 2020, what amount should be reported as gain from the sale of the truck?
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Integrity Company sold to AAA Company machinery costing P800,000 with accumulated depreciation of P200,000 for P500,000 which is also its fair value on January 1, 2021. Integrity immediately leaseback the machine for 5 years for an annual rental of P50,000 payable at the end of each lease year with the first payment on December 31, 2021. The implicit interest rate is 6%. %. (Round off the PV factor to two decimal places, then do not round off during the computation)What is the amount capitalized as rights-of- use machinery at the date of sale-leaseback? a. P500,000 b. P300,000 c. P252,600 d. P210,500
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