Amal owns the following assets:(1) Two investment properties respectively valued at £674,000 and £442,000. The first property has an outstanding repayment mortgage of£160,000.(2) Vintage motor cars valued at £172.000. (3) Investments in Individual Savings Accounts valued at £47,000, National Savings & Investments savingscertificates valued at £36,000, and government stocks (gilts) valued at £69,000. Amal owes £22,400 in respect of a personal ioan from a bank, andshe has also verbally promised to pay legal fees of £4,600 incurred by her nephew. Her reasonable funeral expenses will amount to f5,500. Amalshusband died on 12 March 2007. On 14 August 2008 Amal had made a gift of £90,000 to her daughter, and on 7 November 2018 she made a gift ofher main residence, worth £220,000, to her son. Based on previous information in the case, answer the following questions4. What is the amount of Amal's own nil rate band for calculating the inheritance tax payable in respect of herestate were she to die on 20 March 2020?

Answered: Amal owns the following assets: (1) Two…

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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Shark Tank plc used general funds to finance the construction of non-current assets. The general funds comprised the following: 9% £60,000 loan 8% £40,000 loan On 1 April 2019, SharkTank plc paid £20,000 to commence the production of a qualifying asset and a further £30,000 on 30 June 2019 to continue with the production. The asset was still being constructed at the end of the year. How much interest should be capitalised for this qualifying asset for the year ended 31 December 2019 (do not round up any of your working - use the exact interest rate)?
How many of the following statements regarding the concepts underlying the financial statements are true? The president of a sole proprietorship purchases a new recreational vehicle (RV) for personal use using their own funds. The RV would be recorded as an asset on the company's current financial statements. Large public companies often round their financial statement dollar amounts to the nearest $1,000 or $1 million. A company purchased land for $1 million in 2010. The land was recently appraised at $1.5 million. The land would be reported on the current balance sheet at $1 million.
Margery Corp. received $100,000 in interest from a bank this year, $80,000 of municipal bond interest. Margery Corp. paid $5,000 of interest expense on loans it secured to purchase the municipal bonds. What is the total, net BTD associated with these investments? Group of answer choices $75,000 favorable, permanent $85,000 favorable, permanent $80,000 favorable, permanent $85,000 favorable, temporary
The president of ACCO 202 Corporation donated a building to Ana G. Méndez Corporation. The building had an original cost of $200,000, a book value of $75,000, and a fair market value of $180,000. To record this donation, Ana G. Méndez would a. Make a memorandum entry b. Debit Building for $75,000 and credit Gain for $75,000 c. Debit Building for $200,000 and credit Gain for $200,000 d. Debit Building for $180,000 and credit Gain for $180,000
Horizons plc had the following bank loans outstanding during the whole of 20X8 which form the company’s general borrowings for the year: £m 10% loan repayable 20X9 250 8% loan repayable 20Y2 750 Horizons plc began construction of a qualifying asset on 1 May 20X8 and withdrew funds of £45 million on that date to fund construction. On 1 September 20X8 an additional £60 million was withdrawn for the same purpose. Calculate the borrowing costs which can be capitalised in respect of this project for the year ended 31 December 20X8. Select one: a. £5,000,000 b. £4,250,000 c. £5,418,750 d. £850,000 e. £8,925,000 f. £3,056,250
X Corporation applied for its rehabilitation and submitted a rehabilitation plan which called for the entry by it into a joint venture agreement with Y Corporation. Under the agreement, Y Corporation was to lend to X Corporation its credit facilities with certain banks to obtain funds not only to operate X Corporation but also for a part thereof in the amount of P1 million as initial deposit in a sinking fund to be augmented annually in amounts equivalent to 10% of the yearly income from its operation of the business of X Corporation. From this fund the creditors of X Corporation were to be paid annually, starting from the second year of operations, with the entire indebtedness to be liquidated in 15 years. The creditors of X Corporation objected to the plan because Y Corporation would be taking over the business and assets of X Corporation. Could the court approve the plan despite the objections of the creditors of X Corporation and could the creditors be compelled to follow the plan
Using the information provided in points bellow "..." calculate the net chargeable gain arising on the disposal of the freehold warehouse and shares in The City Limited, on the basis that any reliefs available are claimed. "On 25 April 2022 The City received proceeds of £250,000 for the sale of a warehouse which had been used for trading purposes. The original warehouse cost £25,000 when it was first acquired in December 1978 and was valued at £55,000 in March 1982. The sale was due to the company downsizing and The City bought a smaller replacement warehouse in October 2021 for £200,000 On 10 March 2022 The City sold its 100% investment in Lisbonnete Limited for £20,000. The expenses associated with the sale amounted to £5,000 and the original cost of the shares (in July 1992) was £80,000. Lisbonnete Limited was an active trading company throughout the period that it was owned by The City Limited."
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $26,000 on the purchase date and the balance in five annual installments of $9,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 11% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment?
What amount of borrowing costs should be capitalized as cost of the asset? *a. P 360,000b. P 310,000c. P 328,750d. P 327,500
Help Wanted. Thanks!
The Roths bought a house for $438,500. They paid the sellers a 20% down payment and obtained a simple interest amortized loan for the balance from their bank for the remainder, at 0.4875 for thirty years. The bank in turn paid the sellers the loan amount, less a 6% sales commission paid to the sellers' and buyers' real estate agents. The bank charged them 2 points plus fees totaling $8,549.15; of these fees, $6,317.55 were included in the finance charge. (a) Find the loan amount (b) Find the "legal loan amount" –the amount borrowed, according to the Truth in Lending Act. (Round your answer to the nearest cent.) (c) Find the Roth's monthly payment. (Round your answer to the nearest cent.) (d) Find the APR (round to the nearest hundredth of 1%). (e) Find the total interest paid. (Round your answer to the nearest cent.) (f) Find the total finance charge. (Round your answer to the nearest cent.) (g) Find the amount that the sellers are paid for their house.
Hw.144.

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