On April 12, 2023, Prism Ltd., a camera lens manufacturer, paid cash of $558,200 for real estate plus $30,000 cash inclosing costs. The real estate included land appraised at $216,000; land improvements appraised at $84,000; and abuilding appraised at $300,000. (a) (b) (c) PPE Asset Appraised Values Ratio of Individual Appraised Value to TotalAppraised Value (a) + Total Appraised Value Cost Allocation (b) x Total Actual Cost Present the journal entry to record thepurchase. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)

Answered: On April 12, 2023, Prism Ltd., a camera…

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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In its first year of business, Coronado purchased land, a building, and equipment on March 5, 2023, for $636,000 in total. The land was valued at $269,400, the building at $336,750, and the equipment at $67,350. Additional information on the depreciable assets follows: Asset Building Equipment (a) Land Residual Value Building Your answer is correct. $ $25,200 $ 4,000 Equipment $ Useful Life in Years Allocate the purchase cost of the land, building, and equipment to each of the assets. 60 8 254400 318000 Depreciation Method 63600 Straight-line Double diminishing-balance
Assume that Timberline Corporation has 2022 taxable income of $246,000 for purposes of computing the §179 expense. It acquired the following assets in 2022: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Asset Purchase Date Basis Furniture (7-year) December 1 $ 432,000 Computer equipment (5-year) February 28 96,000 Copier (5-year) July 15 36,000 Machinery (7-year) May 22 486,000 Total $ 1,050,000 What would Timberline's maximum depreciation deduction be for 2022 assuming no bonus depreciation?
3
The records for AC3220 Ltd. show the following data for calendar 2023: 1. Golf club dues were $3,800. 2. Machinery was acquired in January 2023 for $300,000. AC3220 uses straight-line depreciation over a ten-year life (no residual value). For tax purposes, AC3220 claimed 42,000 of CCA on the equipment for 2023. 4. Total meals and accommodations expensed for the year was 8,000. 5. 6. The estimated warranty liability related to 2023 sales was $19,600. Warranty repair costs paid during 2023 were $13,600. The remainder will be paid in 2024. Pre-tax accounting income is $250,000. The enacted income tax rate is 25%. Instructions Prepare a schedule (starting with pre-tax accounting income) to calculate taxable income. a) b) Prepare the required adjusting entries to record income taxes for 2023.
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Bonita Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $371,700. The estimated fair values of the assets are land $70,800, building $259,600, and equipment $94,400. At what amounts should each of the three assets be recorded? (Do not round intermediate calculations and round final answers to O decimal places e.g. 58,971.) Recorded Amount Land Building $ Equipment $
Chaz Corporation has taxable income in 2022 of $312,600 for purposes of computing the $179 expense and acquired the following assets during the year: Asset Office furniture Computer equipment Delivery truck Qualified real property (MACRS, 15 year, 150% DB) Total Placed in Service September 12 February 10 August 21 September 30 Maximum total depreciation deduction What is the maximum total depreciation deduction that Chaz may deduct in 2022? (Use MACRS Table 1. Table 2. Table 3, Table 4 and Table 5.) Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Basis $ 786,000 936,000 74,000 1,505,000 $ 3,301,000 =
Rodriguez Company pays $373, 815 for real estate with land, land improvements, and a building. Land is appraised at $180,000; land improvements are appraised at $40,000; and the building is appraised at $ 180,000. Allocate the total cost among the three assets. Prepare the journal entry to record the purchase.
Rodriguez Company pays $384,345 for real estate with land, land improvements, and a building. Land is appraised at $234,000; land improvements are appraised at $52,000; and the building is appraised at $234,000.1. Allocate the total cost among the three assets.2. Prepare the journal entry to record the purchase.
Whispering Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $396,900. The estimated fair values of the assets are land $75,600, building $277,200, and equipment $100,800. At what amounts should each of the three assets be recorded? (Round intermediate percentage calculations to 5 decimal places e.g. 18.25124 and final answers to O decimal places, e.g. 5,275.) Land Building Recorded Amount $ LA Equipment $ LA

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