20. The comparative statements of financial position of Andante Co. show the following information: 20x2 20x1 2,500,000 1,000,000 Buildings Accumulated depreciation (200,000) (200,000) During 20x2, Andante Co. sold an old building with historical cos of P800,000 for P260,000 and appropriately recognized a loss of P40,000 on the sale. How much are the (1) cost of acquisitions of building and (2) depreciation expensë recognized in 20x2? a. 2,300,000; 0 b. 2,300,000; 500,000 c. 1,500,000; 0 d. 1,500,000; 200,000

20. The comparative statements of financial position of Andante Co. show the following information: 20x2 20x1 2,500,000 1,000,000 Buildings Accumulated depreciation (200,000) (200,000) During 20x2, Andante Co. sold an old building with historical cos of P800,000 for P260,000 and appropriately recognized a loss of P40,000 on the sale. How much are the (1) cost of acquisitions of building and (2) depreciation expensë recognized in 20x2? a. 2,300,000; 0 b. 2,300,000; 500,000 c. 1,500,000; 0 d. 1,500,000; 200,000

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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3. Subject :- Accounting
Aa.2
ACME Co. paid $110,000 for the net assets of Comb Corp. At the time of the acquisition the following information was available related to Comb's balance sheet: Book Value Fair Value Current Assets $50,000 $ 50,000 Building 80,000 100,000 Equipment 40,000 50,000 Liabilities 30,000 30,000 What is the amount recorded by ACME for the Building? a. $110,000 b. $20,000 c. $80,000 d. $100,000
Convenience Travel Corp.'s financial information for the year ended December 31, 20X4 included the following: Property Plant & Equipment $15,000,000 Accumulated Depreciation The only asset owned by Convenience Travel in 20X5 was a corporate jet airplane. The airplane was being depreciated over a 15 year period on a straight-line basis at a rate of $1,000,000 per year. On December 31, 20X5 Convenience Travel sold the airplane for $10,000,000 cash. Net income for the year ended December 31, 20X5 was $12,000,000. Based on the above information, and ignoring taxes, what is cash flow from operations (CFO) for Convenience Travel for the year ended December 31, 20X5? O $13,000,000. $8,000,000. 9,000,000 O $11,000,000. 2
Cedric Company recently traded in an older model of equipment for a new model. The old model’s book value was $180,000 (original cost of $400,000 less $220,000 in accumulated depreciation) and its fair value was $170,000. Cedric paid $60,000 to complete the exchange which has commercial substance. Required: Equipment - new ___?___ Accumulated depreciation 220,000 Loss on exchange of assets 10,000 Cash 60,000 Equipment - old 400,000
COTB MC Qu. 15-70 (Algo) Assume a company sold a... Assume a company sold a piece of equipment that had an original cost of $500,000 and accumulated depreciation of $300,000. The gain on the sale was $21,000. In addition, the beginning and ending balances in the company's Property, Plant, and Equipment account were $4,700,000 and $4,600,000, respectively. Based solely on the information provided, the company's net cash provided by (used in) investing activities would be: Multiple Choice $(179,000). $(200,000). O $(158,000). $(121,000).
An asset which costs $25,000 and has accumulated depreciation of $6,000 is sold for $11,000. What amount of gain or loss will be recognized when the asset is sold? a. A gain of $14,000 b. A loss of $14,000 c. A gain of $8,000 d. A loss of $8,000
ACME Co. paid $110,000 for the net assets of Comb Corp. At the time of the acquisition the following information was available related to Comb's balance sheet: Book Value Fair Value Current Assets $50,000 $ 50,000 Building 80,000 100,000 Equipment 40,000 50,000 Liabilities 30,000 30,000 What is the amount recorded by ACME for the Building? a. $110,000 b. $20,000 c. $80,000 d. $100,000
Additional information (a) The entity sold some tangible non-current assets, which had a net book value of $200 million. The cost of sales figure includes a loss of $10 million on this disposal. (b) Cost of sales is arrived at after charging depreciation on the tangible non-current assets of $42 million. (c) Dividends paid during the year were $55,000. IMPORTANT: if your answer is 100,000 for this question please write 100 and IGNORE 000 while writing answer. If you write answer with 000 it will be marked as incorrect Find cashflow from Operations
Towns a machine that was purchased three years ago that cost $180,000 and accumulated depreciation of $43,000 1. What is T's basis on the machine? Under the following scenarios, calculate the 1231 Gain or loss; the amount, if any, of depreciation recapture (indicate whether it is 1245 or 1250 recapture); indicate the portion of the gain or loss that is taxed at ordinary rates and the portion that is LTCG; if there is a loss how much of the loss carries over? (Assume date of sale is today.) 2. Sold the machine for $155,000 3. Sold the machine for $130,000 4. Sold the machine for $200,000
2. Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $840,000. The estimated market values of the purchased assets are building, $487,500; land, $302,250; land improvements, $58,500; and four vehicles, $126,750. 4. Compared to straight-line depreciation, does accelerated depreciation result in payment of less total taxes over the asset’s life?