1-Company acquired equipment on July 1, 2015 from National Manufacturer at $16000The estimated useful life of 5 years and estimated residual value of $1000 the company realized that it mistakenly recoded depreciation based on the SLM instead of the SYD method. 2- failed to recognized $500 unrealized gain on non-trading securities. 3- company mistakenly reports $1000 gain on reissuing treasury share in the income statement of 2016. A) - Show the dollar amount impact, if any, and the nature of the effect (overstatement or understatement or no effect) of these accounting errors on the following financial statement items(company subject to 40% tax rate). :

1-Company acquired equipment on July 1, 2015 from National Manufacturer at $16000The estimated useful life of 5 years and estimated residual value of $1000 the company realized that it mistakenly recoded depreciation based on the SLM instead of the SYD method. 2- failed to recognized $500 unrealized gain on non-trading securities. 3- company mistakenly reports $1000 gain on reissuing treasury share in the income statement of 2016. A) - Show the dollar amount impact, if any, and the nature of the effect (overstatement or understatement or no effect) of these accounting errors on the following financial statement items(company subject to 40% tax rate). :

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The T-accounts for Equipment and the related Accumulated Depreciation—Equipment for Luo Company at the end of 2020 are shown here. Equipment Beg. bal. 80,600 Disposals 23,800 Acquisitions 40,000 End. bal. 96,800 Accumulated Depreciation—Equipment Disposals 8,700 Beg. bal. 47,800 Depr. exp. 13,300 End. bal. 52,400 In addition, Luo’s income statement reported a loss on the disposal of plant assets of $6,100. What amount was reported on the statement of cash flows as “cash flow from sale of equipment”? (Show amount that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash flow from sale of equipment $
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IBM Ltd. undepreciated capital cost of a Class 1 Building was $180,484 at the year ended 2022. The original cost of the building was $600,000. The building was sold in 2023 for proceeds of cash which was $550,000. Which one of the following statements is false for 2023? Recapture occurs because the estimated decline in value was overstated (ie the asset was worth more in the end) A capital loss will be incurred of $550,000 $600,000 = -$50,000 The company will have a recapture of $369,516 Since the purchase was over $50,000 a separate class 1 was set up
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