ABC Company declared on December 1, 2021 its 10 brand new fleet of cars costing P500,000 each as property dividends to be distributed on February 1, 2022 to its ten shareholders. The following fair value less cost to distribute of the cars was determined to be: December 1, 2021....................4,800,000 December 31, 2021....................4,000,000 February 1, 2022....................4,000,000 What is the net decrease of retained earnings in 2021?

Q: Korean Short Ribs Company sold a tract of land with carrying amount of P3,000,000 to Instant Pot…

A: Formula: Notes receivable amount = Principal amount - Interest with installment amount.

Q: Xavier Corporation begins business on March 1, 2021. The corporation incurs start-up expenditures of…

A: Note: Immediate Deduction Under § 195=$5,000Any start-up costs over $50,000 is deducted from $5,000.

Q: C3 Nelson Co has a taxation year end of December 31. On January 1, 2022 the UCC of Class 8 was…

A: Assets    An asset is a resource having economic worth that a person, organization, or nation…

Q: On January 1, 2020, CANDICE Company acquired an equipment for P5,000,000. The estimated useful life…

A: Introduction: Depreciation: Deceasing value of fixed assets over its useful life period called as…

Q: Assuming the company receives P40,000 upon retirement of the machinery at the end pf 5th year, how…

A: Annual Depreciation = Total Cost - Residual ValueUseful Life

Q: 8) On January 1, 2019, Seabreeze Construction Company owned 4 dump trucks, 2 excavators and other…

A: The assets of the company will be used by the company for a long period of time, hence the…

Q: On January 1, 2022, ABC Company buys three hectares of land for exactly P800,000 with the amount to…

A: The notes payable is the financial instruments recorded as liability on the balance sheet, the…

Q: 2023 P 60,000 P 5,000 2024 72,000 3,000 2025 84,000 - 2026 92,000 4,000

A: B. - 4,874,000

Q: property dividend to be recognized on Fe

A: Answer = 0 Loss or gain on distribution of property is recorded on the date of declaration of…

Q: Wayne Co. buys land for $145,000 in 2021. As of 3/31/22, the land has appreciated in value to…

A: Cost concept is the important concept to maintain the Assets accounts  of the organization.…

Q: On October 1, 2021, Loving Company approved a formal plan to sell a business segment. The sale will…

A: As per IFRS 5 , Non current assets held for sale and discontinued operations  An entity shall…

Q: 6. Rich Company leased equipment to Snead Company on July 1, 2033, for a one-year period expiring…

A: Income (expense) before income taxes=Total Revenues-Total Expenses

Q: arket value of

A: Depreciation is a demunition [reduction] in the value of an asset on…

Q: On January 1, 2022. Plantitos Company purchased a vineyard costing P 12.000,000 which is determined…

A: Solution Given Purchase cost of vineyard 12,000,000 Fair value less cost to dispose…

Q: Jerabek Inc. decided to sell one of its tangible capital assets that had a cost of $55,000 and…

A: Net Book of assets = Cost -  accumulated depreciation = $55,000 - $35,000 = $20,000

Q: Sylvie Co. purchased a piece of equipment on January 1, 2016 for $259,000. Its estimated useful life…

A: Depreciation expense:— It is the allocation of depreciable cost of asset over the estimated useful…

Q: 7. In 2020, Lihim na Pagtingin Designs Corp. sold a layout design to Masaya Inc. and will receive…

A: Revenue - Revenue is the income earned during the financial year. It is not on the receipt basis it…

Q: B on 6/30/2021 for $660,000. The useful life of the patent is estimated to be six years. On…

A: Given that Fair market value = $250,000 Carrying value = $275,000

Q: teel Corporation buys equipment in January of the current year with a seven-year class life for…

A: The deduction in the year of purchase for E&P purposes due to the acquisition and expensing of…

Q: how much borrowing cost should be capitalized by ISKOLAR in 2021?

A: Borrowing cost can be defined as interest and other costs incurred by an enterprise in relation to…

Q: 42. How much is capitalized cost of borrowing?

A: When funds are borrowed specifically for a qualifying asset, costs in relation to that borrowing are…

Q: 7. Mr. Y acquired his business' building with a 10-year useful life on October 1, 2010. As of…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: On May 12, 2020, calendar year Corp. A purchased residential real estate (apartment complex) at a…

A: MACRS Depreciation : Basis: $200,000 Recovery Period: 27.50 years Depreciation Method- Straight Line…

Q: Rambo Manufacturing Co. purchased $2,885,000 in new production equipment during 2022.  All of the…

A: Section 179 of the IRS Code of the United States seems to be an instant cost deduction that company…

Q: ABC Company has equipment acquired on January 1, 2018, at a cost of P2,200,000 with an estimated…

A: Given, On 1 Jan 2018 Purchase price of equipment = P 2,200,000 Residual Value = P 200,000 Useful…

Q: In order to boost the sales of ABC & Co., the board of directors approved a share appreciation plan…

A: In Year 2020, Sales is more than 100 million, so the COO is entitled to 10,000 shares. Compensation…

Q: Armando Corporation incurred the following expenses: 2022 2023 Salaries 515,000 614,000 Materials…

A: The objective of the question is to calculate the amount of research and experimental expenditures…

Q: 4. The following information pertains to Our Company's self-constructed building project Our Company…

A: NOTE : As per BARTLEBY guidelines, when multiple sub parts are given, then first three sub parts are…

Q: On January 1, 2021, ABC Company sold machinery with carrying amount of P550,.000 for P800,000, which…

A: Present value of lease liabilities = present value of lease payments made  Since payment are made in…

Q: s

A: Gross profit Sheridan Construction Company should recognize in 2024 is $3,660,000.Explanation:How to…

Q: Tokwa't Baboy Company prepared the following reconiliation of income per books with income per tax…

A: Solution: Total provision for Income tax = Book income before taxes * Tax rate

Q: In 2021, ABC Corporation which is subject to MCIT has the following records: Sales: net of…

A: The MCIT is 2% of the gross income of the corporation at the end of the taxable year.   Computation…

Q: On Jan. 1, 2010, ABC entered into an insurance contract covering the life of its founder. The…

A: Cash surrender value to be recognized at the end of December 31, 2014 is P 80,000 On that date the…

Q: Loma Linda, Incorporated sells a long-lived asset that originally cost $202,000 for $52,000 on…

A: Depreciation is considered an expense that is charged on the value of the Asset. It can be…

Q: The amount of depreciation expense for this machine in 2022 would be

A: The unit of production method for calculating depreciation considers an asset's practical usage in…