Show me the solution thankss... 6. Entity A acquires an investment property for P1,000,000 cash. Additional costs incurred areas follows:• Repairs and remodeling before occupancy, P50,000.• Legal costs of transferring title to the property, P20,000.• Repairs after occupancy, P15,000.The investment property is estimated to have a remaining useful life of 10 years and aresidual value equal to 5% of initial cost. Entity A uses the straight line method ofdepreciation. How much is the carrying amount of the investment property after one year?a. 914,850b. 968,350с. 923,100d. 872,100ed the answer?Get it-with an expla186 tutors online. Answers in as fast as 15 minutes.

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Answered: 6. Entity A acquires an investment…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11EA: The following intangible assets were purchased by Goldstein Corporation: A. A patent with a...

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The following intangible assets were purchased by Goldstein Corporation: A. A patent with a remaining legal life of twelve years is bought, and Goldstein expects to be able to use it for seven years. B. A copyright with a remaining life of thirty years is purchased, and Goldstein expects to be able to use it for ten years. For each of these situations, determine the useful life over which Goldstein will amortize the intangible assets.
Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
9. Entity A acquires an investment property for ₱1,000,000 cash. Additional costs incurred are as follows: • Repairs and remodeling before occupancy, ₱50,000. • Legal costs of transferring title to the property, ₱20,000. • Repairs after occupancy, ₱15,000. The investment property is estimated to have a remaining useful life of 10 years and a residual value equal to 5% of the initial cost. Entity A uses the straight-line method of depreciation. How much is the carrying amount of the investment property under the cost model after one year? a. 923,100 b. 968,350 c. 872,100 d. 914,850
Smitty Inc. wishes to use the revaluation model for this property: Before Revaluation • Building Gross Value 120,000 • Building Accumulated Depreciation 40,000 • Net carrying value 80,000 The fair value for the property is $150,000. Assuming this is the first year of using the revaluation model, what amount would be booked to the Accumulated Depreciation account, if Smitty chooses to use the proportional method to record the revaluation? $75,000 Credit O None of the above. O $35.000 Credit $35.000 Debit $40,000 Debit
Investment Property Determine the cost of the following items of investment acquired by Sasha Corporation during 2022; Land site for capital appreciation was acquired for P8,600,000. The company paid P430,000 commission to a real estate agent. Costs of P 135,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for P 65,000. The cost of investment property is _____________ Land and building were acquired to be held for under operating leases. The company made a de payment of P4,000,000, issued 20,000 P200 par ordinary shares with a market price of P240 per share, and issued a three-year non-interest-bearing note for P6,000.000 note is payable in equal annual installments of P2,000,000 at the end of each year from the date of purchase. The prevailing interest rate for similar notes is 10%. 30% of the purchase price is allocated to the land. Investment property is recorded at __________
Entity A acquired an asset that had a cost of P130,000. The asset is being depreciated over a 5-year period using the sum-of-the-years’ digit method. It has a salvage value estimated at P10,000. The loss/gain if the asset is sold for P38,000 at the end of the third year is ?
Alabama Corp. acquired an investment property on January 2, 2022, at a total cost of P8 million. The property has a useful life of 25 years. Its fair value on December 31, 2022, is P9.6 million. The entity used the fair value model to account for its investment property. What is the depreciation expense to be recognized for the year 2022? a. 384,000 b. 0 c. 256,000 d. 320,000 What is the carrying amount of the investment property on December 31, 2022? a. 8,000,000 b. 9,216,000 c. 9,600,000 d. 7,680,000 What is the gain or loss on fair value change to be recognized for the year 2022? a. 1,600,000 b. 1,920,000 c. 1,536,000 d. 0
1. Suppose you have purchased land, a building, and some equipment. At the time of the acquisition, the land has a current fair value of $75,000, the building’s fair value is $60,000, and the equipment’s fair value is $15,000. Journalize the lump-sum purchase of the three assets for a total cost of $140,000. Assume you sign a note payable for this amount. Show all steps please.
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Entity A acquires equipment on January 1, 20x1. Information on costs is as follows: Purchase price, gross of P10,000 trade discount 800,000 Non-refundable purchase taxes 20,000 Delivery and handling costs 40,000 Installation costs 30,000 Present value of decommissioning and restoration costs 10,000 1.) How much is the initial cost of the equipment? A. P 890,000 B. P 820,000 C. P 900,000 D. P 870,000
A SE company has on its books for its proved property: P/P- tangible assets $50,000 Well and E&F $220,000 Accumulated DD&A $32,000 If the entire proved property is sold for $220,000, what will be any gain or loss? Accouinting
On January 1, 2022, Edson Company acquired three investment properties: Initial cost Fair value,12/31/2022 Fair value, 12/31/2023 Property 1 Property 2 Property 3 2,700,000 3,200,000 3,500,000 3,450,000 3,300,000 3,000,000 3,900,000 2,800,000 3,400,000 Each property had an estimated useful life of fifty years. The accounting policy is to use the fair value model for investment property. What is the gain or loss to be recognized for the year ended December 31, 2023? A. 250,000 loss B. 400,000 loss C. 300,000 gain D. 700,000 loss

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