The fair value of the property, plant and equipment of Lamina Coamounted to P710,000 on the date of purchase (tax base P690,000). Inrespect of all the other items book value was equal to fair value and the taxbase. The tax rate is 30 per cent. What is the goodwill arising on thepurchase of Lamina Co? *Layla Co purchased 100 per cent of the equity shares in Lamina Co on 31 March 20X8 for P1,500,000. The statement of financialposition of Lamina Co on 31 March 20X8 disclosed the following.PGoodwill100,000130,000680,000(400,000)1,310,000PatentsProperty, plant and equipmentCurrent assetsCurrent liabilities

Goodwill is the amount which occurs when the purchasing company pays more than the company from whom…

Answered: base. The tax rate is 30 per cent. What…

Business

Accounting

base. The tax rate is 30 per cent. What is the goodwill arising on the purchase of Lamina Co? *

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Given the following tax structure: Salary $ 27,000 $ 45,000 Taxpayer Mae Pedro Required: a. What is…

A: Progressive vs Regressive Tax In contrast to regressive taxes, which have the opposite effect,…

Q: 0. It had been depreciated to $3,000. The original purchase price was $6,000. Your tax rate is…

A: The right answer is option D$4.600

Q: Given an asset with a net book value (NBV) of $47,000. a. What are the after-tax proceeds for a firm…

A: GAIN OR LOSS ON SALE OF ASSETS Gain or Loss on Sale of Assets is the difference between sales value…

Q: Helene Corporation owns manufacturing facilities in States A, B, and C. A uses a three-factor…

A: Business transactions are defined as the dealings that take place between the business and its…

Q: 6. Use the following tax table to answer this question: Taxable Income $0- 50,001- 75,001- 100,001-…

A: Net income refers to the amount earned by the firm from its business operations. It is to be…

Q: Company P must choose between two alternate transactions. The cash generated by Transaction 1 is…

A: The marginal tax rate (MTR) is the rate at which an additional unit of income is taxed. In other…

Q: go.01

A: a. Step 1: Calculate taxable incomeTaxable income = Salary + Net long-term capital gainTaxable…

Q: 1 Suppose the taxpayer received $35,000 in cash, a ring worth $3,000 and the buyer assumed the…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: Use the following information for Taco Swell, Incorporated, (assume the tax rate is 21 percent):…

A: Income and balance sheet statements:

Q: Harris has the following data (VAT exclusive): Taxable sales are P 1,200,000 Exempted sales are P…

A: ANSWER:- VAT payable = P101,818.19. Explanation:- Value Added Tax (VAT) is a tax imposed on the…

Q: 4.2. The following information relates to Machine Productive at 31 December 2020: Historic Carrying…

A: When the fair market value of an asset is less than the book or carrying value of asset, the asset…

Q: Rental House: Purchase price $79,000, ( Remaining Loan Balance: $66,102) Depreciation Costs…

A: The term like-kind exchange means a tax-deferred transaction that allows for the disposal of an…

Q: Gains and losses derived from sale or exchange of all capital assets are subject to capital gains…

A: Tax is the compulsory amount that is paid by the taxpayer from the income derived from their…

Q: is, everyone gets a $10,000 deduction. What are the marginal and average tax rates for each of the…

A: The term "personal income" is sometimes used to refer to an individual's total pay; nevertheless,…

Q: DelemIine the Tollowing. Use the lax table below. ТАX ТАBLE If taxable income: Tax due is: 3 0% Not…

A: Since, taxable income is below $250000, tax due = 150000 * 0% = 0

Q: Solve for the tax due on the given taxable income, Use A. Graduated Income Tax table. And B. OSD…

A: OSD is an abbreviation for the optional standard deduction, which is a deduction from gross taxable…

Q: 1. Assume that you have 100,000 TL annual income which is subject to a progressive taxation.…

A: Annual Income = 100,000 Tax Rates and calculations are provide below:

Q: preciation with respect to the machinery was Lento sold the machinery for $13,000 in cash. Lento's…

A: A gain or loss on the sale of property, plant, and equipment is determined by comparing the original…

Q: A supplier imported goods and then sold them to a distributor for a value of 920,000 riyals…

A: VAT is a value added tax. Tax is charged on the value added amount. Given in the question: Supplier…

Q: A customer purchases $28.14 in products only $12.83 is taxable. How much sales tax is owed if the…

A: Sales tax is a tax levied on the sale and purchase of goods and services. It is typically a…

Q: What are the after tax proceeds of the property sale? Answer is a three digit number with the…

A: Net After-Tax Proceeds means, concerning any asset sale, an amount equal to the net cash proceeds…

Q: e step 2 calculation of IRR, how do you find the tax amount of 114000? th

A: The IRR is internal rate return is one of most used capital budgeting methods used and this is the…

Q: You have some property which has an assessed value of $240,900. If the tax rate is 56.40 mills,…

A: Introduction The mill rate is based on mills which is derived from Latin word millesimal which…

Q: K's Warehouse has a market value of $900,000. The property in K's is assessed at 45% of the market…

A: The market value of the Warehouse is $900,000 The assessment rate is 45% The tax rate is $62.40 per…

Q: Firm E must choose between two alternative transactions. Transaction 1 requires a $13,650 cash…

A: As per tax rules, certain expenses incurred are deductible from total income for the purpose of…

Q: How did you get $12,974.50 for the Marginal tax rate part?

A: Marginal tax rate is the percentage tax paid on each additional dollar of income earned. In other…

Q: Sunny receives a property distribution from Cloudy Corp. The distributed property had a FMV of…

A: What is Gain to Cloudy Corp?The difference between the distributed property's adjusted basis and…

Q: Prance, Inc., earned pretax book net income of $800,000 in 2021. Prance acquired a depreciable asset…

A: Tax expense refers to an amount that is charged by an individual or corporation to the local, state,…

Q: Which passive income is subject to regular tax? Dividend income from resident corporation…

A: Answer: The passive income are those income which are not always regular and there is based on…

Q: Given the tax rate table below. For a person who has a taxable income of $70,000, what is the…

A: Taxable income = $70,000Tax Liability = [$9525 x 10%] + [($38700 - $9525) x 12%] + [ ($70000 -…

Q: A sole proprietorship firm has taxable income of $128,200. Assume this is the sole source of income…

A: Answer Taxable amount = $128,200

Q: In year 1, Firm A paid $47,000 cash to purchase a tangible business asset. In year 1 and year 2, it…

A: Purchase price = $47,000 Year 1 depreciation = $2,920 Year 2 depreciation = $6,400 Tax rate = 21%…

Q: 19. The seller has half a tank of fuel oil worth $325. How is this handled? A. Credit to seller,…

A: Expenses can be described as the costs which are incurred by the business or individual to run the…

Q: 9. Calculate the assessed value (in $) and the property tax due (in $) on the property. Fair Market…

A: Property Tax - Property Tax is tax levied on the property owners against the service provided by way…

Q: A customer makes a taxable purchase of 44,000. Assuming the applicable sales tax rate is 8.75%, how…

A: Taxes are levied on taxable supply. In the question the given details areTaxable purchase =…

Q: 24. Which is TRUE? S1: Representation expense of a seller of goods is subject to limitation of 5%…

A: Representation expense of a seller of goods is subject to limitation of 0.50% of net sales. In…

Q: If the property before tax cashflow (PBTCF) in a given year is $125,000, total debt service is…

A: The Equity after tax cash flow of the investor is that income after deducting all expenses and tax.

Q: Suppose Hampton Corporation sells land for $8,000,000. Hampton paid $5,000,000 for the land several…

A: After-tax cash flow is the amount that is arrived after net of taxes paid on the receipt of any…

Q: Required Answer each of the following questions by providing supporting computations. 1. Assume that…

A: hey there since you have posted multiple questions, we can answer only first question, please…

Q: Want Answer of the following question

A: Step 1:Perkins Manufacturing is considering selling two non-depreciable assets, X and Y. We need to…

Q: Need Help with this Question

A: Step 1: Let's go through the calculations step by step: Part (a): Calculate the amount of capital…

Q: Compute the following. 1. Total gain. 2. Contract price. 3. Payments received in the year of sale.…

A: Capital Gain: A capital gain is any profit from the sale of any asset or an inventory. A capital…

Q: 54. In relation to transaction #1, How much is the capital gains tax due, if any? A. PO C.…

A: Capital gain refers to the concept where the profit earned on the asset sale which has increase in…

Q: 1 Suppose the taxpayer originally purchased the machinery by paying $12.000 in cash and giving the…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Firm E must choose between two alternative transactions. Transaction 1 requires a $9,150 cash outlay…

A: After tax cost refers to the amount that will be deductable from revenue after appliying tax rate to…

Q: A taxable investment produced interest earnings of $2,800. A person in a 26 percent tax bracket…

A: Earning = $ 2,800 Tax Rate = 26% After tax earning = Earning *(1-Tax Rate)

Q: This term refers to an asset sold for more than its original value. Using taxable income, it is…

A: An asset sold for more than its original value is commonly referred to as a "Capital Gain." Capital…

Q: If Hulk has taxable income = $94,000, how much will it pay in taxes? Select one: a. $16,750 b.…

A: Taxable Income = 94,000 Brackets: Up-to 50,000 = 15% tax rate 50,001 to 75,000 = 25% tax rate…

Concept explainers

Filing Federal Income Tax Return

A tax is the amount of money paid to the government on the revenue earned by the individual or business organization. It acts as an income for the government and an expense for the individual or business organization. There are different regulations regarding filing an income tax return in other countries.

Question

The fair value of the property, plant and equipment of Lamina Co
amounted to P710,000 on the date of purchase (tax base P690,000). In
respect of all the other items book value was equal to fair value and the tax
base. The tax rate is 30 per cent. What is the goodwill arising on the
purchase of Lamina Co? *
Layla Co purchased 100 per cent of the equity shares in Lamina Co on 31 March 20X8 for P1,500,000. The statement of financial
position of Lamina Co on 31 March 20X8 disclosed the following.
P
Goodwill
100,000
130,000
680,000
(400,000)
1,310,000
Patents
Property, plant and equipment
Current assets
Current liabilities

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

10.
3) ( Below table shows the calculations for an after-tax analysis of a machine purchase alternative. EOY ВТСР Depreciation Deduction Тахable Income АТCF Income Таxes - 20,000 16,000 16,000 16,000 16,000 16,000 18,000 3,000 3,000 3,000 3,000 3,000 3,000 13,000 13,000 13,000 13,000 13,000 15,000 - 6,500 - 6,500 - 6,500 - 6,500 - 6,500 - 7,500 - 20,000 9,500 9,500 9,500 9,500 9,500 1 3 4 6. 10,500 a) Find answers to the below questions What are the cost basis (price) and "annual revenues less expenses"? What is the terminal market value (or salvage value)? What is the income tax rate? i. ii. iii. iv. What is the method used for depreciation deduction? What is the book value at the end of useful life? V. b) Calculate the equivalent present worth (PW) and the equivalent annual worth (AW) at an after-tax MARR of 11%.
Which of the following is true? (a) Tax rates are based on two flat-rate schedules, one for individuals and one for businesses. (b) When businesses subtract expenses, they always include capital costs. (c) For businesses, taxable income is total income less depreciation and ordinary expenses. (d) When quantifying depreciation allowance, one must always divide first cost by MACRS 3-year life.
KNB sold real property to Firm P for $15,000 cash and Firm P’s assumption of the$85,000 mortgage on the property.Required: What is KNB’s amount realized on the sale?b. Compute KNB’s after-tax cash flow from the sale if its adjusted basis in the realproperty is $40,000 and its marginal tax rate is 35 percent.
10. Calculate the assessed value (in $) and the property tax due (in $) on the property. (Round your answers to the nearest cent.) Fair MarketValue AssessmentRate AssessedValue PropertyTax Rate PropertyTax Due $342,900 72 $ 5.1% $
A customer purchases $28.14 in prodcts only $12.83 is taxable. How much sales tax is owed if the tax rate is 10%?
What are the after tax proceeds of the property sale? Answer is a three digit number with the correct symbol. Tax rate 30% Corporate net income - $200 Depreciated tax value of property sold - $150 Sale proceeds from sale of property - $450 Capital expenditures - $142.25
If you have a taxable income of $372,570.00, what is your total tax bill? $ average tax rate? %
Given the following details, what is the difference in seller net proceeds between the asset sale and the stock sale alternatives (after-tax)? Details ($ in millions): Corporate income tax rate: 30% Capital gains rate: 20% Stock Sale: Purchase price: $4,000 Stock basis: $1,500 Asset Sale: Purchase price: $4,000 Asset basis: $1,500 A. $1,750 B. $600 C. $1,400 D. $2,000
I am confused about this Question
Please do not Give image format
If the tax rates are 15% on the first $50,000 of taxable income, and 20% on the next $25,000, and 25% on the next $25,000, what is the tax liability for an individual with $80,000 of taxable income, what is the marginal tax rate, and what is the average tax rate ? a. $10,250, 15%, and 20% b. $25,122, 22%, and 16% c. $11,345, 15%, and 34% d. $13,750, 25%, and 17.19%