For the following scenarios, off-set the losses for the appropriate years using the rules as applied in Trinidad and Tobago and those in Jamaica: In the year of assessment 2012, Company McKenzie Incor. Ltd has PYL of $3,800,000 to its disposal. In 2013 the company made net income of $4,700,000 and 3,800,000 in 2014.

For the following scenarios, off-set the losses for the appropriate years using the rules as applied in Trinidad and Tobago and those in Jamaica: In the year of assessment 2012, Company McKenzie Incor. Ltd has PYL of $3,800,000 to its disposal. In 2013 the company made net income of $4,700,000 and 3,800,000 in 2014.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 30CE

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2011 During 2011, its first yearof operations, Eli-Wallace Distributors reported pretax accounting income of $200 million which included thefollowing amounts: 1. Income (net) from installment sales of warehouses ni 2011 of$9 milion to be reported for tax purposes ni 2012 ($5 million) and 2013 ($4 milion). .2 Depreciation si reported by the straight-line method on na asset with afour-year useful life. On the tax return, deductions for depreciation will be more than straightline depreciation the first two years but less than straight-line depreciation the next two years (S in millions): 2011 2012 2013 2014 Income Statement $ 50 50 50 50 $ 2 0 0 T a x R e t u r n •66 88 30 16 $200 Difference $(16) (38) 20 34 0 3. Estimated warranty expense that wil be deductible on the taxreturn when actually paid during the next two years. Estimated deductionsare as follows $( ni millions): 2011 2012 2013 57 : $4 (4) (3) $0 income Statement Tax Return Difference 2012 During 2012, pretax accounting income…
Items 16 and 17 are based on the following information: Nokia Company purchased pressing machinery that cost P54,000 on January 4, 2016. The entire cost was recorded as an expense. The machinery has a nine-year life and a P50,400 depreciable cost. The error was discovered on December 20, 2018. 16. Ignoring income tax considerations, Nokia's statement of comprehensive income for the year ended December 31, 2018 should show depreciation expense in the amount of A. P48,400. B. P32,700. C. P16,800. D. P 5,600. 17. Before the correction was made, the January 1, 2018, retained earnings was understated by A. P54,000. B. P48,400. C. P42,800. D. P37,200.
In the 30 June 2020 annual report of Laverton ltd, the following information was reported for buildings: Building (at cost) $260,000 Accumulated depreciation (60,000) The buildings consisted of one Building – Building A. The building was measured using the cost model and depreciated on a straight-line basis over a 10-year period. On 31 December 2020, the director of Laverton ltd decided to change the basis of measuring the building from the cost model to the revaluation model. Building A was revalued to $168,000 with an expected useful life of 5 years. As of 30 June 2021, Building A was assessed to have a fair value of $160,000 with an expected useful life of 4 years. Required: Prepare the analysis and necessary journal entries during the period 1 July 2020 to 30 June 2021 in relation to the building, note, show all workings. (Ignore tax effects and narrations are not required)
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Sanjay Industries Limited, which depreciates its machinery at 10% according to Diminishing Balance Method, had on 1st January 2016 Rs. 972,000 balance on Machinery Account. During the Year 2016 part of the machinery purchased on 1st January 2014 for Rs. 80,000 was sold for Rs. 45,000. On 1st July 2016 a new machinery at a cost of Rs. 150,000 was purchased and installed on the same date. Installation charges incurred Rs. 8,000. The company wanted to change its method depreciation from Diminishing Balance Method to Straight Line Method with effect from 1st January 2014 and adjust the difference before 31st December 2016. The rate of depreciation remains the same as before. Show Machinery Account and ascertain the amount chargeable to profit and loss account as depreciation and on sale of machinery in the year 2016.
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An organisation's asset register shows a carrying amount of $145,600. The non-current asset account in the nominal ledger shows a carrying amount of $135,600. The difference could be due to a disposed asset not having been deducted from the asset register. Which one of the following could represent that asset? A Asset with disposal proceeds of $15,000 and a profit on disposal of $5,000 B Asset with disposal proceeds of $15,000 and a carrying amount of $5,000 C Asset with disposal proceeds of $15,000 and a loss on disposal of $5,000 D Asset with disposal proceeds of $5,000 and a carrying amount of $5,000
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Ryan Company reported an impairment loss of P2,540,000 in its statement of comprehensive income for the year ended December 31, 2018. This loss was related to long-lived assets acquired on January 1, 2017 with cost of P10,000,000, useful life of 10 years and 200,000 residual value. On the December 31, 2018 statement of financial position, Ryan reported these long-lived assets at P5,500,000 which is the fair value on such date. On December 31, 2019, Ryan determined that the fair value of its impaired long-lived assets had increased to P6,700,000. The straight line depreciation is recorded for the impaired assets. Required: Depreciation expense for 2019.
For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquire at the beginning of 2015 for $2,736,000. Its useful life was estimated to be six years with a $204,000 residual value. At the beginning of 2018, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows (S In 000s): Year Straight-Line Declining Balance 2015 $ 422 2016 422 2017 422 $1,266 No 1 $912 608 405 $1,925 Required: 2. Prepare any 2018 Journal entry related to the change. (Enter your answers in dollars rounded to the nearest thousand. If no entry Is required for a transaction/event, select "No Journal entry required" In the first account field.) Event 1 Difference $490 186 (17) Depreciation expense $659 Answer is complete but not entirely correct. General Journal Accumulated depreciation Debit 211,333 X Credit 211,333