Carla Vista Ltd. received a $270000 grant from the federal government to help buy equipment as an incentive for them to establish manufacturing operations in Ottawa. The company assumes the equipment has a 10-year useful life and uses straight-line depreciation. If Carla Vista uses the cost reduction method for such transactions, it should record this transaction as a O credit to Equipment for $270000. O memo entry only. O credit to Deferred Revenue for $270000. O credit to Contribution Revenue for $270000.

Carla Vista Ltd. received a $270000 grant from the federal government to help buy equipment as an incentive for them to establish manufacturing operations in Ottawa. The company assumes the equipment has a 10-year useful life and uses straight-line depreciation. If Carla Vista uses the cost reduction method for such transactions, it should record this transaction as a O credit to Equipment for $270000. O memo entry only. O credit to Deferred Revenue for $270000. O credit to Contribution Revenue for $270000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

New energy-efficient windows were installed for a total cost of $375,000. The company received a government grant, in the form of cashback for 15% of the total cost. The windows have a 15-year useful life and are depreciated on a straight-line basis. Prepare the journal entries required in the year of purchase using the: 1) Net method 2) Deferral method
Zebra SA is carrying out its annual impairment review. The carrying amounts of its cash generating unit are as follows:Goodwill 90000Office Headquarters 450000patents and software 120000 equipment 89000 total CA = 749000 There are indications that the CGU may be impaired. The net selling price of the CGU is estimated at €550,000. Value in Use has been calculated at €593,100.Further Information:Lion BV has recently sought to purchase Zebra’s patents and software. They were willing to pay €110,000. An office similar to the headquarters recently sold for €420,000.1. calculate the amount of the impairment loss and show how this should be allocated between the assets of the CGU (firstly without the further information about the Lion BV purchases and then finally incorporating that further information). Explain your workings
Green Pastures received a grant of P60 million to compensate it for costs incurred in planting Narra trees over a period of 5 years. Green Pastures will recur such costs in this manner: Year Costs 1 2M 2 4M 3 6M 4 8M 5 10M Total costs thus incurred will aggegate P30 M. Required: Based on the provisions of PAS 20, Government Grants, how should Green Pastures treat the “grant” in the books?
Stoney Run Construction Company (U.S. GAAP) enters into a 3-year contract to build a new warehouse facility. Information for Years 1, 2, and 3 is shown below: Year 1 Year 2 Year 3 Sale price $2,800,000 $2,800,000 $2,800,000 Estimated costs 1,600,000 2,000,000 2,000,000 Costs incurred to date (paid in cash) 400,000 900,000 2,000,000 Billed to date 250,000 1,150,000 2,800,000 Received in cash to date 190,000 950,000 2,800,000 Record the necessary journal entries for Years 1-3.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Pls prepare journal entries for both and show solutions
Your Question: Hua Fat Technology Ltd Case Hua Fat Technology Ltd (Hua Fat) is a global telecommunication equipment manufacturer. The company was granted a piece of land by the government to develop its 5G business. On 1st January 2018, the company started to construct a property at the site. The property was used as a testing laboratory (the laboratory) to serve the company’s customers. The construction costs relating to the laboratory were: $000 Cost of construction materials before trade discount of 10% 50,000 Salary of construction workers for six months to 30 June 2018 4,800 Overheads related to the construction 3,600 Payment to external consultants related to the construction 2,000 Expected dismantling and restoration costs (note 3) 400 Notes: Hua Fat…
of Take me to the text Higgins Ski Resort spent several years developing a new snow-making machine. Its lawyer suggested patenting the machine. The company obtained the patent on January 1, 2021. The company paid $190,000 to the lawyer, $15,000 to the government for the patent and $10,000 in additional fees. Required a) Prepare the journal entry to record the full cost of the patent. Do not enter dollar signs or commas in the input boxes. Date Account Title and Explanation Jan 1 Debit Credit To record the total relevant patent fees b) The patent has an estimated life of 20 years. Prepare the journal entry to record amortization for one year on December 31, 2021. Round your answers to the nearest whole number. Date Account Title and Explanation Dec 31 Check To record amortization for the year Debit Credit
ABC company installed a plant useful life 8 year costing Rs1 Million and 200000 on its instalation,there is a legal requirment to restore the place after useful life.it is estimated that 200000 have incurred on 31 december using technology as they have past practiced,however if existing techonology on this time of restoration it would cost 100000 only the entity uses discount rate 10% where applicable. Requirement :calculate the amount of provision ?
Please do not give solution in image format thanku