Uste Company owns a condominium unit in "The One Residences" which is near the factory andthe plant's administrative building. To make it convenient to its executive, it allowed the latter touse the said property as his residence. The zonal value of the property is P32,000,000 while itsfair market value as shown in its current Real Property Tax Declaration amounts to P25,000,000.Assuming that the acquisition cost of the residential property is P26,000,000 and the remaininguseful life is 12 years. How much is the fringe benefit expense?

Fringe benefit refers to the additional forms of the benefit provided to the employee by their…

Answered: e Company owns a condominium unit in…

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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to 13. The initial cost of an investment property, plus the o purchase a larger house. Based on these facts, the individual(s) entitled to a full exclusion from depreciation, represents the investment's use capital gains on the sale is e the married couple and the single man. * the married couple and the single woman. C. the married couple only. D. the single man only. 12. When calculating the depreciation on an apart- ment building that sits on a valuable piece of land, the person preparing the calculation must under- stand that A. only the building itself can be depreciated. B. both the building and the land can be depreciated. C. the building can be fully depreciated but the land can only be partially depreciated. D. the building and the land are depreciated in direct proportion to their value. ost of any subsequent improvements, minus any depreciation, A. adjusted sales price. R. represents the investment's
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Land was for R1 000 000. The land is currently measured under the revaluation model and the revalued carrying amount is R1 200 000. Parliament has signed the land expropriation without compensation agreement and as a result, the value of land all across the country has declined. The fair value less cost to sell is R800 000 and the value in use is R900 000. Assume a tax rate of 28%.Required: Prepare the journal entries relating to the impairment loss
Rock Properties recently purchased a building that generates Gross Rental Income of $190,000 per year and Net Operating Income of $125,000 per year. Rock paid $250 per square foot for the 3,000 square foot building. What was the capitalization rate based on the purchase price? a. 25.3% b. 65.8% c. 16.7% d. 12.5% e. None of the above.
What is the maximum price you would be willing to pay for the business? If an investor group purchased the restaurant near the campus for $255, 867 and the fair value of the assets they acquired was $202,000, identify the account along with its balance, that is used to record the additional amount paid over the fair value of the assets.
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)
Calculate the Assessed Value (in $) and the property tax due (in) on the Property ? Fair Market Value Assesment Rate 264,000 80 Assesed Value Property Tax Rate Proporty Tax $25.60 Per 1,000 Due (I put 1, 011, 200) It was wrong * (I put 25,886.72 It was wrong
True or False If a property’s market value becomes 0, the owner has no right to sell it at a value > 0 since this will be taxable at avery large rate.
ANSWER ONLY JOURNAL ENTRIES! ANSWER ONLY JOURNAL ENTRIES! ANSWER ONLY JOURNAL ENTRIES! Question: If the sales price is P1,000,000 which is equal to fair value compute the following under the buyer-lessor accounting Gross Investment Net Investment Unearned Interest Income Journal entries on January 1, 20x1
None
A user is considering whether to lease or purchase a 50,000-square-foot, free-standing building. The user is a corporation whose tax rate is 21 percent for all sources of income. The corporation's after-tax discount rate is 9 percent. The following T-bars are the result of an after-tax analysis performed to assist the corporation in making the decision to lease or own the building. Minus Lease Equals Differential ΕΟΥ Purchase 0 ($972,000) ($132,531) ($132,901) 3 ($134,258) ($135,727) ($137,318) 6 ($139,041) 7 ($140,908) 8 ($142,929) 9 ($145,117) 10 ($148,370) + $1,516,391 $0 ($972,000) ($158,400) $25,869 ($158,400) $25,499 ($158,400) $24,142 ($158,400) $22,673 ($158,400) $21,082 ($166,320) $27,279 ($166,320) $25,412 ($166,320) $23,391 ($166,320) $21,203 ($166,320) $1,534,341 What is the after-tax present cost of occupancy for the lease alternative? $1.534.341 X A 30
Sole proprietorship. Limited liability company. When doing a 1031 exchange, how long do you have to purchase the second property after the sale of the first property? AO 90 days. B. 180 days. 60 days. 45 days. Save and Exit Instructions

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