Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $828100 cash. The land was appraised at $199,986 and the building at $752,329 Required a. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. b. Would the company recognize a gain on the purchase? c. Record the purchase in a horizontal statements model.

Q: Describe rules-based accounting standards.

A: Financial accounting is the process of recording, summarizing, and reporting all the transactions in…

Q: Accounting equation system

A: The answer is provided as follows:

Q: What is data reliance on a task? (relative to Accounting Information Systems)

A: Introduction: Accounting Information system: Accounting An information system is a collection of…

Q: Distinct features between management accounting and financial accounting

A: The objective of this question is to distinguish between management accounting and financial…

Q: Classify the Costs for Financial Statements?

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Basic purpose of accounting

A: There are two basic purpose of Accounting they are 1. Ascertaining Financial results (Profit ans…

Q: Explain principal (agency relationships)

A: Answer: Agent: An agent is one who provides work on principal’s behalf.  Principal approves agent to…

Q: Management accounting is used by  A. Internal managers B. Shareholders  C. External users D.…

A: Accounting is the process of recording and reporting the monetary transactions in the books of…

Q: Accounting as a social science is viewed as information system.

A: Accounting is a social science because it employs a set of knowledge and methods to describe recent…

Q: Briefly define accounting.

A: This question explains about accounting.

Q: differentiate internal user from external user of accounting information

A: Accounting is the detailed process of recording, classifying, summarising and reporting accounting…

Q: How does accounting provide important data to a. Internal users b. External users

A: The process by which financial transactions of the business are recorded and communicated with the…

Q: WHAT IS AN ACCOUNT TITLE?

A: An account title is a descriptive name or label given to an account to help identify and classify it…

Q: which internal users need the accounting information

A: Accounting information data is the data that emerges from business exchanges. When distinguished,…

Q: Which of the following is a fundamental characteristic of accounting information? Select one: O A.…

A: Fundamental characteristics of accounting information include relevance, which ensures it is useful…

Q: Principles of professional accountancy? Expalin

A: Professional accounting may be defined as an accounting field that would be defined by a statutory…

Q: termediate goods in manage

A: In the context of management accounting, intermediate goods are products that are not quite finished…

Q: state the accounting equation and itss components - pls explain in details with examples

A: Accounting refers to the process of recording, posting, analyzing, and reporting the transactions of…

Q: What is management accounting information used for? taking example

A:

Q: Importance of cost accounting to an Accounting student

A: Cost accounting is an essential part of every business. This will help you to make better financial…

Q: How different in management accounting from cost accounting? Provide a brief commentary in two…

A: Definition: Accounting: Accounting is the process of recording, summarizing, and reporting all the…

Q: Define Debit

A: Accounting depends on double entry system. As per dual aspect principle of accounting, each and…

Q: accounting and auditing

A: Accounting is started when the bookkeeping is completed. Whereas, auditing is started when…

Q: Distinguish between Accounting Information System (AIS) and Management Information System (MIS).

A: Accounting Information System means the system to record financial transactions of any business…

Q: Range of services provided by accounting

A: Accounting is a process of identifying and recording the financial transactions of an organization…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.