for 2,000,000. It transferred ownership thereto to its managerial employee for 1,200,000 when its fair value was 3,000,000. What is the monetary value of the benefit? O 3,000,000 O 2,000,000 O 1,800,000 O 800,000

for 2,000,000. It transferred ownership thereto to its managerial employee for 1,200,000 when its fair value was 3,000,000. What is the monetary value of the benefit? O 3,000,000 O 2,000,000 O 1,800,000 O 800,000

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: This year, the Jackson Miller Trust earned the following: . $4,000 in ordinary dividends. • $500 in…

A: When there is no income from municipal bond then fiduciary fees are 100% deductible. When there…

Q: . Taxpayer incurred the following for the taxable period: Supplies purchased P80,000 Supplies used…

A: Under Cash basis, expenses shall be Deductible only when actually paid. Amortization and unpaid…

Q: Provide answer the question

A: Key InformationAdjusted basis of old machine: $9,000Fair market value of new machine: $6,000Cash…

Q: Employer purchased a residential property on installment basis and had the same used by its…

A: If the employer purchases a residential property on installment basis and allows his employee to use…

Q: Julia has invested her profits from thq last several years with BF Dutton Inc. and has provided the…

A: Taxable income is the portion of an entity's total income that is subject to taxation by the…

Q: 24. The entity has the following asset during the year Building 5,000,000 Land 2,000,000…

A: Impairment loss is the amount by which carrying amount of a firm's assets exceeds it's recoverable…

Q: Vergo Company acquired a motor vehicle for P1,000,000 for the use of one of its on-call employees.…

A: If the Employer owns and maintains a motor vehicle for the use by employee for the business…

Q: Helene Corporation owns manufacturing facilities in States A, B, and C. A uses a three-factor…

A: Business transactions are defined as the dealings that take place between the business and its…

Q: Taxpayer: Domestic Corporation engaged in manufacturing business Taxable period data: Item IN…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: P20,000,000. The supplier provides the entity one additional truck of the same kind with a fair…

A: whenever a company purchase it's asset is recording is done in the balance sheet at historical cost…

Q: Thank you for your response. Can you please show calculations on how you arrived at the $72,560…

A: Goodwill is calculated by subtracting fair value of all assets takes from liabilities taken and…

Q: The following information were provided by Hokaido Company: Income, P2,700,400; Bonus rate, 12%; Tax…

A: Bonus is the extra amount that are paid to employees in the form of a financial reward or an…

Q: Jordon Corporation obtains the following information from its actuary. All amounts given are as of…

A: The projected benefit obligation represents the future pension liabilities. It is the actual…

Q: Mai is going to contribute the following assets to a business entity in exchange for an ownership…

A: Business entity-: An Business entity is an institution built by one or additional individuals to…

Q: 4.2. The following information relates to Machine Productive at 31 December 2020: Historic Carrying…

A: When the fair market value of an asset is less than the book or carrying value of asset, the asset…

Q: I sol my property for $5,000,000. I purchased the property for $4,900,000 with partial sale of…

A: To calculate your adjusted basis, you need to start with the original purchase price and add any…

Q: 19. Shaquille transfers two assets to a newly-created corporation. The first asset has an adjusted…

A: A recognized gain occurs when an investment or item is sold for a higher price than it was…

Q: The company has the opportunity to engage in a transaction that will generate a total cash of…

A: The present value of receipts is computed by multiplying the gross receipts with the discounting…

Q: On January 1, 2020, Blue company purchased X company for P25 Million. At such date, X Company had…

A: Answer:- Definition of meaning:- Goodwill is a kind of an intangible asset generally related with…

Q: The president of Plain Corp., Joyce Lima, is thinking of purchasing Blue Spruce Corporation. She…

A: Goodwill is an intangible asset which arises out of transactions like business combinations, mergers…

Q: Richelle Company provided the following information during the current year: 1-Jan 31-Dec…

A: Projected Benefit Obligation The purpose of using the projected benefit obligation which describes…

Q: Which of the following assets would be treated as a capital assets A. A painting that the taxpayer…

A: Capital Assets:- It is any kind of property held by an assessee, whether or not connected with the…

Q: 8 Chester Company has a defined benefit plan. The fair value of plan assets on January 1, 2002, was…

A: Actual return on plan assets = Ending fair value of plan assets - contribution made + benefits paid…

Q: Y Corp. had Net Receipts of 1,000,000.0o. The actual entertainment, amusement and recreation expense…

A: The entertainment, amusement and recreation expenses are the expenses which are incurred in the…

Q: value on the improvement on the lot was 1,500,000. The lot was purchased at a cost of 2,000,000.…

A: Annual value to be considered = 5% of zonal value of land & improvement or 5% of market value,…

Q: A non-profit organization received $80,000 as the entrance fee of a new member. If 10% of the fee…

A: The entrance fee received by non-profit organizations may be divided into two parts namely that need…

Q: Felix Ltd. uses the percentage-of-completion method to account for work performed on its contracts…

A: Price of contract = $ 3,000,000 Cost till date = $ 1,000,000 Total estimated cost = $ 1,750,000

Q: Johanne transferred investment property to S&J Corporation in exchange for 60 percent of the S&J…

A: Answer f) An investment property is bought with the hope of profiting from either: Rental income or…

Q: COMPUTE: Taxable Gross gift/donation

A: A taxable gift or donation refers to the transfer of money, property, or assets for which the donor…

Q: Company G, which has a 30 percent marginal tax rate, owns a controlling interest in Company J, which…

A: After-Tax Cash CalculationsScenario A: Company G performs the contractGross Revenue: $90,000Taxable…

Q: Corporation owns a residential house with a fair market value of $10,000,000 and a carrying amount…

A: Fringe benefits tax refers to the tax levied by the authoritative government over the perks received…

Q: 19. Shaquille transfers two assets to a newly-created corporation. The first asset has an adjusted…

A: When an investment or object is sold at a higher price than it was originally paid, a recognized…

Q: Fillon operates manufacturing facilities in States A and B. Fillon has nexus with both states;…

A: The taxable income in both the states would be based on the apportionment factors of total income.

Q: Compute taxable income of a charitable trust for the A.Y 2023-24 under the following cases:…

A: A charitable trust is a legal entity created with the primary purpose of managing and distributing…

Q: Sunny receives a property distribution from Cloudy Corp. The distributed property had a FMV of…

A: What is Gain to Cloudy Corp?The difference between the distributed property's adjusted basis and…

Q: Assume that a company buys another business and pays for its goodwill. If the company plans to incur…

A: Goodwill is a intangible asset which is recorded during purchase of a entity by deducting market…

Q: In 2021, Peter Quill had a 5 179 deduction carryover of $40,000. In 2022, Peter elected $ 179 for an…

A: Section 179 is a section used to claim a deduction for business expenses. According to this section,…

Q: A product and service are bundled together and sold to customers for $450. The fair values of the…

A: The question is related to Residual method for allocation. Under the residual method requires the…

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…

Q: Taxpayer: Domestic Corporation engaged in manufacturing business Taxable period data: Item IN…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: How much is the employee benefit expense taken to profit or loss during 2021?

A: Employee benefit expenses will include : 1. Current service cost 2. Past service cost 3. Net…

Question

Celebes, Inc. owns a
residential property it acquired
for 2,000,00O. It transferred
ownership thereto to its
managerial employee for
1,200,000 when its fair value
was 3,000,000. What is the
monetary value of the benefit?
3,000,000
O 2,000,000
O 1,800,000
800,000

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Federal Insurance Contributions Act (FICA)

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

it says answer is wrong
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
The following information is made available in relation to the defined benefit plan of Marcos Company for the year 2022: Current service cost 200,000 Fair value of plan assets, 12/31/22 4,000,000 Asset ceiling, 1/1/22 200,000 Fair value of plant assets,1/1/22 2,000,000 Contribution to the plan 700,000 Discount rate 12% Defined Benefit obligation, 12/31/22 3,440,000 Asset ceiling, 12/31/22 340,000 Benefits paid to retirees 400,000 Defined benefit obligation, 1/1/22 1,700,000 What is the remeasurement gain/loss related to the change in the fair value of plan assets? O 108,000 1.736,000 O 384,000 O 1,460,000
11. In 2021, ABC Corporation which is subject to MCIT has the following records: Sales: net of discounts and allowances 9,500,000 Cost of sales 5,000,000 Gain on sale of building 150,000 Allowable deductions 4,420,000 Compute the MCIT of ABC Corporation. P46,000 P46,500 P93,000 P95,000
57
Actuarial gain or loss - plan assets Fair value of plan assets (1 July 2013) Plus: Return on plan assets (6% x $94 356 000) Contributions Minus: Benefits paid Actuarial Fair value of plan assets (30 June 2014) Required: Select a correct answer for each blank. $94 356 000 5 661 360 8 640 000 (15 552 000) $95 832 000
Carding received the following during the year: 200,000 car as donation; 50,000 income of donated property before donation; 30,000 income from donated property after donation; 100,000 inherited properties. How much is excluded from gross income? P380,000 P350,000 P50,000 P30,000
An S-Corporation has ownership of a piece of land with an adjusted basis of $10,000 and a FMV of $100,000. It distributes this land to a shareholder, what basis would the shareholder have in this land? a. $0 b. It would depend on the shareholder's inside basis c. $90,000 d. $100,000 e. $10,000
15. Richelle Company provided the following information during the current year: January 1 December 31 Fair value of plan assets 6,000,000 8,500,000 Projected benefit obligation 5,000,000 6,500,000 Prepaid/accrued benefit cost - surplus 1,000,000 2,000,000 Asset ceiling 700,000 1,200,000 Effect of asset ceiling 300,000 800,000 During the year, entity recognized current service cost of P1,000,000, actual return on plan assets of P400,000, and contribution to plan of P2,100,000. The discount rate is 10%. What is the employee benefit expense for the current year? Group of answer choices 900,000 930,000 870,000 800,000
Sh4 Please help me. Solution Thankyou
1. How much is the additional allowable training expenses, if any?2. How much is the taxable net income of the company?
12 Richelle Company provided the following information during the current year: January 1 December 31 Fair value of plan assets 6,000,000 8,500,000 Projected benefit obligation 5,000,000 6,500,000 Prepaid/accrued benefit cost - surplus 1,000,000 2,000,000 Asset ceiling 700,000 1,200,000 Effect of asset ceiling 300,000 800,000 During the year, entity recognized current service cost of P1,000,000, actual return on plan assets of P400,000, and contribution to plan of P2,100,000. The discount rate is 10%. What is the net remeasurement loss for the current year? Group of answer choices 670,000 700,000 270,000 730,000 PreviousNext