ABC adheres to IFRS and applies the revaluation model to account for its Patents. Prior to 2009, there was no balance in the company's Revaluation Surplus (OCI) accounts relating to its long-lived assets. The following year-end data refers to the company's patents (the table values are in 000's): Carrying Value Fair Value 2009 $100 2010 $90 2011 $80 $120 $60 $100 The 2009 revaluation journal entry would include Select one: O a. $20,000 OCI gain on the Statement of Comprehensive Income. O b. $20,000 credit to the revaluation surplus account. O c. $20,000 credit to the retained earnings. O d. $20,000 credit to amortization expense

ABC adheres to IFRS and applies the revaluation model to account for its Patents. Prior to 2009, there was no balance in the company's Revaluation Surplus (OCI) accounts relating to its long-lived assets. The following year-end data refers to the company's patents (the table values are in 000's): Carrying Value Fair Value 2009 $100 2010 $90 2011 $80 $120 $60 $100 The 2009 revaluation journal entry would include Select one: O a. $20,000 OCI gain on the Statement of Comprehensive Income. O b. $20,000 credit to the revaluation surplus account. O c. $20,000 credit to the retained earnings. O d. $20,000 credit to amortization expense

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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Dazzle Corporation purchased a patent for P7,140,000 on January 2014. The patent is being amortized over the remaining legal life of 15 years expiring on January 2029. During 2017, Dazzle Corporation determined that the economic benefits of the patent would not last longer than ten years from the date of acquisition. Using the same information on number (33), what amount should be charged to patent amortization expenses for the year ended December 31, 2017, assuming there is no change in the patent's useful life? OP816,000 O P476,000 O None of the above OP571.200 OP4,896,000
ABC (S) Pte Ltd, incorporated in 2010, is in the business of manufacturing tyres. For the year ended 31 December 2020, the company's net profit of $100,000 included the following, in addition to the profit from sale of tyres: Interest income from OCBC Bank $5,000Dividend income from DBS Bank $3,000Rental from investment property $20,000 What is ABC's taxable income for the Year of Assessment 2021? Group of answer choices a) $100,000 b) $97,000 c) $92,000 d) None of the above
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HE Ltd is a company incorporated in SG and prepares its financial accounts based on the Singapore Financial Reporting Standards. It purchased a machine on 1/1/20X1 for $150,000. The machine has a useful economic life of 10 years and zero residual value. On 1/1/20X4, the company revalued the machine to its current fair value of $180,000. Assume that the current gross carrying amount of the machine as at 1st Jan 20X4 by reference to observable market data is $255,000. Illustrate with journal entries to show the revaluation of the machine by restating the gross carrying amount of the machine by reference to observable market data.
The land that Martin Company paid $81,000 to purchase in the prior year had an appraised market value of $112,000 at the end of the current reporting period. Which of the following shows how the change in market value will affect the company's accounting equation? The letters "NA" indicate that the component of the equation is not affected. A. B. C. D. Assets $ 81,000 $ 31,000 NA $ 112,000 =Liabilities + NA NA ΝΑ ΝΑ = = = = Common Stock NA NA NA ΝΑ Retained Earnings $ 81,000 $ 31,000 ΝΑ $ 112,000
6. Joel Company
A company owns a patent for which it paid $75 million. At the end of 2024, it had accumulated amortization on the patent of $15 million. Due to adverse economic conditions, the company's management determined that it should assess whether an impairment loss should be recognized for the patent. The estimated undiscounted future cash flows to be provided by the patent total $40 million, and the patent's fair value at that point is $30 million. Under these circumstances, the company would repor
MNO Ltd adopts fair value for subsequent measurement of its intangible assets. An intangible with an estimated useful life of 9 years was acquired on 1 January 2012 for GHC90,000. It was revalued to GHC108,800 on 31 December 2012 and the revaluation surplus was correctly recognized on that date. As at 31 December 2013, the asset was revalued at GHC64,000. Required: State the accounting treatment required in 2012 and 2013 financial statements
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