Counting Crow’s investment property has a carrying amount of ₱3,600,000 under the fair valuemodel, before adjustment. If the fair value at year-end is ₱3,000,000, how much should be thegain or loss on transfer if Counting Crow would shift to cost model?

Counting Crow’s investment property has a carrying amount of ₱3,600,000 under the fair valuemodel, before adjustment. If the fair value at year-end is ₱3,000,000, how much should be thegain or loss on transfer if Counting Crow would shift to cost model?

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: An asset used in a 4-year project falls in the 5-year MACRS class (refer to MACRS table on page…

A: The objective of the question is to calculate the after-tax salvage value of an asset. The after-tax…

Q: A project has the following net profit after tax set out below. The average book value of the assets…

A: ARR is one of the capital budgeting tools that can be used by an investor to evaluate a proposed…

Q: Calculate the total of CFADS over the lifetime of the project.

A: Cash Flow Available for Debt Service (CFADS) measures the cash generated by a project or investment…

Q: At 31 March 2021, a valuation export informed the directors of Super that the property owned and…

Q: $2,000,000, what percent of the IRR can be attributed to the operating income only?

Q: An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an…

A: The after-tax salvage value is the amount of cash a company receives from selling an asset at the…

Q: How do you calculate the goodwill value of $94,700?

A: Lets understand the basics.When one entity acquires another entity then concept of goodwill or gain…

Q: Tanaka Company has land that cost $15,000,000. Its fair value on December 31, 2017, is $20,000,000.…

A: Assets are carried at the fair value on the date of revaluation under revaluation model for…

Q: You have entered into an agreement for the purchase of land. The agreement specifies that you will…

A: The total cost is the total amount of expenses incurred by a business in order to produce a given…

Q: Clarke Inc. owns an investment property with the following data: |Cost - January 1, 2015 Fair value…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an…

A: After tax salvage value is the amount after tax that is received at the end of project and end of…

Q: after tax WACC: 10.10% investment related cash flows: invoice price of machinery: $500,000…

A: Here, WACC is 10.10% Selling Price per unit is $250 with 2.5% inflation Cost per unit is $185 with…

Q: Consider an asset with upfront cost of $46,184. The cost associated with it during the first year of…

A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

Q: An asset that costs $97,600 and has accumulated depreciation of $82,000 is sold for $18,000. What…

A: Accumulated Depreciation - The amount of depreciation that is charged on an asset from the…

Q: Class], [Year, Three-Year, Five-Year, Seven - Year ],[1,33.33%, 20.00 %, 14.29% The asset has an…

Q: An asset used in a 4-year project falls in the 5-year MACRS class, for tax purposes. The asset has…

A: Book value= (purchase price)*(1-sum of MACR rates from beginning to current date)= 20349349 *(1-(20%…

Q: An asset used in a four-year project falls in the five-year MACRS class (MACRS schedule) for tax…

A: after tax salvage value of the asset is calculated as follows:-after tax salvage value of the asset…

Q: A comparable property recently sold for $65,000. the only difference between the comparable property…

A: Property is the asset to the owner of the respective asset. Given in the question: Comparable…

Question

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

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

1. A special manufacturing and handling device was purchased by Alfonso Manufacturing for $200,000 and is depreciated over MACRS. CFBT is estimated to amount to $800,000 for the first 2 years followed by $600,000 thereafter until the asset is retained. The effective tax rate, Te is 35% and interest is 10% per year. In present worth dollars determine the CFAT and determine if it was a viable purchase. (Note answer must be in a tabular format)
An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $9,300,000 and will be sold for $2,760,000 at the end of the project. If the tax rate is 22 percent, what is the aftertax salvage value of the asset? Refer to (MACRS schedule) (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567) Aftertax salvage value 4
Suppose the subject's net operating income is $100,000, the direct capitalization rate of the land is 3.5%, the direct capitalization rate of the improvements is 6.0%, and the value of the improvements is $750,000. What is the overall value of the subject property (round to the nearest thousand)? A. $2,321,000 ⒸB. $2,036,000 OC. $1,571,000 OD.$1,286,000
ABC bought a piece of land in a highly developing area for a purchase price of P4,000,000. Directly attributable costs incurred was P250,000. If ABC were to resell this land now, it would incur cost to sell of P400,000. The following rates were gathered. Weighted average cost of capital 15% Land average price increase per year 18% Inflation rate 4% Required: Assuming that ABC plans to sell the asset by the end of the fifth year, compute the following: 1. Intrinsic value
If an asset cost £27,000 with no scrap value, and the annual depreciation charge calculated using the straight-line method is £6,750 per annum, then depreciation is being charged at the rate of(SLM depreciation rate)?
An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $18,720,000 and will be sold for $4,160,000 at the end of the project. If the tax rate is 22 percent, what is the aftertax salvage value of the asset?
2
In a like - kind exchange, Greyland exchanged investment - use real property (FMV $210,000, adjusted basis $190,000) for a smaller piece of investment - use property (FMV $200,000) plus $10,000. They will report a $10,000 gain on the exchange. What is their basis in the replacement property? $170,000 $180,000 $190,000 $200,000
In some commercial property operating agreements, investors are scheduled to receive their “pro rata” share of all cash flow distributions. Based on your understanding of what is meant by a “pro rata” distribution, an investor that contributed 1/10 of the required equity investment would be entitled to receive what proportion of all future cash flows?
Blossom Company is considering the acquisition of Splish, Inc. To assess the amount it might be willing to pay, Blossom makes the following computations and assumptions. A. Splish, Inc. has identifiable assets with a total fair value of $6,014,000 and liabilities of $3,728,000. The assets include office equipment with a fair value approximating book value, buildings with a fair value 25% higher than book value, and land with a fair value 50% higher than book value. The remaining lives of the assets are deemed to be approximately equal to those used by Splish, Inc. B. Splish, Inc's pretax incomes for the years 2020 through 2022 were $470,600, $572,300, and $371,100, respectively. Blossom believes that an average of these earnings represents a fair estimate of annual earnings for the indefinite future. However, it may need to consider adjustments for the following items included in pretax earnings: Depreciation on Buildings (each year) 384,800 Depreciation on Equipment (each year) 31,100…
An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,000,000 and will be sold for $1,200,000 at the end of the project. If the tax rate is 34 percent, what is the aftertax salvage value of the asset? Refer to the MACRS schedule. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Aftertax salvage value S