On January 1, 2020, Anderson Inc. has a balance in its Class 53 UCC of $390000. During 2020, assets with a capital cost of $130000 are added to the Class. There are no disposals during the year. Determine the maximum Class 53 CCA for 2020.
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- On May 1, 2020, Vaughn Manufacturing began construction of a building. Expenditures of $620400 were incurred monthly for 5 months beginning on May 1. The building was completed and ready for occupancy on September 1, 2020. For the purpose of determining the amount of interest cost to be capitalized, the weighted-average accumulated expenditures on the building during 2020 were O $2481600. O $3102000. O $517000. O $620400.The Slow company has started the construction of an asset on September 1, 2019and finished it on November 1, 2020. The weighted average expenditure ascalculated at the end of the construction in 2020 was: $725,456. In 2020, thecomp had the following outstanding indirect debts:DebtOne-year loan payable taken out on March 31, 2019Two-year note payable Faken out on June 1, 2020Amount$67,000$120,000Annual rate5%7%Assuming there is no direct debt related to this construction, the interest that will becapitalized on indirect debt in 2020 is (calculate ratios to 2 decimal places):a) $47,980b) $45,130Oc) $7,133d) $5,737On May 1, 2020, Goodman Company began construction of a building. Expenditures of $600,000 were incurred monthly for 5 months beginning on May 1. The building was completed and ready for occupancy on September 1, 2020. For the purpose of determining the amount of interest cost to be capitalized, the weighted-average accumulated expenditures on the building during 2020 were?
- Crane Company is constructing a building. Construction began in 2020 and the building was completed 12/31/20. Crane made payments to the construction company of $2982000 on 7/1, $6192000 on 9/1, and $5800000 on 12/31. Weighted-average accumulated expenditures were $14974000. $9174000. $3555000. $3039000.Rottweiler Obedience School's December 31, 2021, balance sheet showed net fixed assets of $1,785,000, and the December 31, 2022, balance sheet showed net fixed assets of $2,160,000. The company's 2022 income statement showed a depreciation expense of $333,000. What was the company's net capital spending for 2022? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Net capital spendingXavier Corporation begins business on March 1, 2021. The corporation incurs start-up expenditures of $38,000. Round your final answers to the nearest dollar. a. If Xavier elects amortization under § 195, the total start-up expenditures that Xavier may deduct in 2021 is b. Assume the same facts except the start-up costs totaled $52,000.The total start-up expenditures that Xavier may deduct in 2021 is
- R. Wilson Corporation commenced operations in early 2020. The corporation incurred $60,000 of costs such as fees to underwriters, legal fees, state fees, and promotional expenditures during its formation. Prepare journal entries to record the $60,000 expenditure and 2020 amortization, if any.At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the following three situations: 1. Machine X was purchased for 100,000 on January 1, 2015. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 45,000. The estimated residual value remains at 10,000, but the service life is now estimated to be 1 year longer than originally estimated. 2. Machine Y was purchased for 40,000 on January 1, 2018. It had an estimated residual value of 4,000 and an estimated service life of 8 years. It has been depreciated under the sum-of-the-years-digits method for 2 years. Now, the company has decided to change to the straight-line method. 3. Machine Z was purchased for 80,000 on January 1, 2019. Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value is 8,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry for each situation to record the depreciation for 2020. Ignore income taxes.Early in 2020, ACY Limited engaged a contractor to design and construct a new warehouse. The warehouse was completed and ready for use in early 2021. ACY Limited incurred the following expenditures for the construction. March 1, 2020 $ 90,000 April 1, 2020 May 31, 2020 July 1, 2020 December 31, 2020 72,000 75,000 70,000 200,000 ACY Limited had the following debt outstanding on December 31, 2020. 1. 12%, 3-year note to finance the construction of this warehouse, dated January 1, 2020, with interest payable annually on December 31 2. 12%, 10-year bonds issued at par on December 31, 2015, with interest payable annually on December 31 3. 9%, 3-year note payable, dated January 1, 2019, with interest payable annually on December 31 S 150,000 400,000 200,000 Requirement: A. Advise ACY Limited how to account for the interest incurred related to the warehouse in 2020. Support your answers with detailed calculation.
- The undepreciated capital cost balances at January 1, 2023 were as follows: - Class 13 $37,500 Improvements on its leased head office premises which were rented in 2021 for four years with two successive options to renew for five years and five years. Improvements had originally been made in 2021 in the amount of $45, 000. Additional improvements were made in 2023 at a cost of $28,000. 2021: 45000 / (4+5) : = 5000 2023: 28000 / (2+5) = 4000 x 1.5 = 6000 You multiply by x 1.5 in 2023 because it is a net addition. What does that mean? Explain clearly.The following information is available for Victoria Inc. for calendar 2020: 1. Instalment sales recorded on the books was $ 100,000. Collections of instalment receivables was $ 50,000. Installment sales are taxed when cash is received. 2. Golf club dues were $ 3,800. 3. Machinery was acquired in January 2020 for $ 300,000. Victoria uses straight-line depreciation over a ten-year life (no residual value). For tax purposes, Victoria uses CCA at 14% for 2020 after considering the half-year rule. 4. Dividends received from a Canadian corporation were $ 4,000. 5. The estimated warranty liability related to 2020 sales was $ 19,600. Warranty repair costs paid during 2020 were $ 13,600. The remainder will be paid in 2021. 6. Pre-tax accounting income is $ 250,000. The enacted income tax rate is 25%. Required: ( a ) Calculate taxable income for 2020. Calculate current income taxes payable for 2020. Calculate the balance of any deferred income taxes asset and deferred income tax liability at…On January 1, 2021, Raquel Company purchased a machine for 3,000,000. The entity received a government grant of 500,000 in respect of this asset. The policy is to depreciate the asset over 5 years on a straight line basis and to treat the grant as deferred income. On January 1, 2023, the grant became fully repayable because of non compliance with conditions. Required: Prepare journal entries for 2021, 2022 and 2023.
