On January 1, 2021, ABC Co. traded in an old equipment with carrying amount of P,1680,000 for a new equipment with a cash price of P2,050,000. ABC Co. paid a cash difference of P600,000 to acquire the new equipment.

Q: The difference between book value of the asset with the proceeds receive from its sale, with result…

A: Assets:   It refers to the economic value of all resources owned by the business at a given point in…

Q: Demonstrates the difference between depreciation costs as expenses and the cash flow generated by…

A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…

Q: what is Intangible Asset ? what is  Wasting Assets ?  what is  Asset Cost ? what is  Residual…

A: In the world of finance and accounting, there are key concepts that businesses use to manage their…

Q: A To adjust CAPEX for taxable income B To isolate changes due to buying or selling of CAPEX C To…

A: The net capital expenditures are the difference between capital investments and depreciation, and…

Q: What entry is made when selling a fixed asset?

A: Following entry is passed when selling the fixed assets:

Q: Which of the following is (are) acceptable valuation(s) for reporting of assets on the balance…

A: The objective of the question is to identify the correct methods of asset valuation for reporting on…

Q: Explain what effect will an upward asset revaluation have on subsequent periods’ profits

A: The revaluation of assets means the change in the value of assets over a period of time this made…

Q: Which of these is not part of the historical cost of an asset? O training costs sales tax on…

A: Historical cost in accounting encompasses the original cost incurred to acquire an asset, which…

Q: Do I have to include depreciation when computing net present value?

A: Depreciation is said to be none cash expense so there is no out flow of cash when depreciation…

Q: According to the historical cost principle, assets are measured at the exchange price at the time…

A: Introduction: As per the historical cost principle is one of basic accounting principle, is a…

Q: What is the current market view on USD/JPY? (Will it appreciate and which depreciate? and why?)

A: USD/JPY will be reflecting the exchange rate of Japanese currency with respect to 1 American dollar.…

Q: Explain the historical cost concept as it applies to long-term operational assets. Why is the book…

A: The cost of a fixed asset include every expenses incurred in bringing the asset into present…

Q: Fixed assets are ordinarily presented on the balance sheet OO at their current market value under…

A: Fixed assets are ordinarily presented in balance sheet at their cost less accumulated depreciation.…

Q: Which one of the following is not one of the factors in computing depreciation? Cost price…

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

Q: what are some pros and cons of holding high level of current assets in relation to sale?

A:

Q: why are inventories considered a current asset and not part of long-term assets

A: Inventory is one of the important asset being used in business. It includes inventory of raw…

Q: hat is the amount realized in a transaction? The gain on the sale of an asset The proceeds less the…

A: Capital gain is realized from the sale of fixed assets.

Q: Assuming interest costs related to an asset qualify for interest capitalization, which of the…

A: Option 4 is correct The amount that should be capitalised is the lower of actual interest cost…

Q: What are the economic benefits of leasing vs ownership of assets?

A: MEANING:- Leasing of Assets - The leasing of assets refers when the owner gives the right to use…

Q: What are depreciation and its purpose? Does the book value of a fixed asset (cost minus accumulated…

A: Depreciation is an expense which shows the decrease in the asset's value over the life of the asset…

Q: How should goodwill be amortized?

A: Goodwill is an example of intangible assets which has no physical identity.

Q: the equation for book value is: book value = cost of an asset minus its accumulated depreciation.…

A: Asset: Asset is a resource owned by a company from which future economic benefits are expected to…

Q: What costs are included in determining the total cost of an asset? Why would a company include more…

A: Asset refers to the resources used by the company in order to run operations effectively and…