On October 1, 2020, Generosity Company declared a property dividend of machinery payable on April 1, 2021. The carrying amount of the machinery is P4,000,000 on October 1, 2020.The machinery had the following fair value: Oct. 1, 2020 3,800,000 Dec. 31, 2020 3,600,000 April 1, 2020 3,500,000 What id the dividends payable and loss on distribution of property dividend?
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On October 1, 2020, Generosity Company declared a property dividend of machinery payable on April 1, 2021. The carrying amount of the machinery is P4,000,000 on October 1, 2020.The machinery had the following fair value:
Oct. 1, 2020 3,800,000
Dec. 31, 2020 3,600,000
April 1, 2020 3,500,000
What id the dividends payable and loss on distribution of property dividend?
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- On November 1, 2018, Berry Corporation declared equipment as property dividend payable on February 15, 2019. The carrying amount of the equipment is P700,000. Data relating to the fair values of the equipment are as follows: Date Fair value November 1, 2018 600,000 December 31, 2018 800,000 February 15, 2019 760,000 **(assume that the cost to distribute are immaterial) How much is the gain on distribution of property dividends on February 15, 2019 when the dividends were finally distributed?On December 1, 2021, CAF Corporation declared equipment as a property dividend payable on January 15, 2021. The carrying amount of the equipment is P350,000, which approximates its fair value. The fair values of the equipment on December 31, 2021, and January 15, 2022 are P400,000 and P390,000, respectively. What is the balance of property dividends payable on December 31, 2021?On October 31, 2020, Dylan Company declared its non-current asset (land) as a dividend with a carrying value of P2,600,000 and has a current fair value of P2,405,000. On December 31, 2020, the non-current asset has a fair value of P2,730,000. The non-current asset was distributed on March 31, 2021 when its fair value was P2,925,000. a. What amount should be charged to retained earnings at the time the dividend was declared? b. What amount of property dividends payable should the company disclose in their December 31, 2020 statement of financial position? c. What amount of asset held for disposal should the company disclose in their December 31, 2020 statement of financial position?
- The following information was extracted from the records of Jackson Ltd as at 30 June 2020.Asset (liability)Accounts receivableMotor vehiclesProvision for warrantyDeposits received in advanceCarrying amount$150 000165 000(12 000)(15 000)Tax base$175 000125 00000The depreciation rates for accounting and taxation are 15% p.a. and 25% p.a. respectively. Depositsare taxable when received, and warranty costs are deductible when paid. An allowance for doubtfuldebts of $25 000 has been raised against accounts receivable for accounting purposes, but such debtsare deductible only when written off as uncollectable.Required1. Calculate the temporary differences for Jackson Ltd as at 30 June 2020. Justify yourclassification of each difference as either a deductible temporary difference or a taxabletemporary difference.2. Prepare a deferred tax worksheet and the journal entry to record deferred tax for the yearended 30 June 2020 assuming no deferred items had been raised in prior years.Coline has the following capital gain and loss transactions for 2021. a. Short-term capital gain $7,900 b. Short-term capital loss (3,318) c. Long-term capital gain (28%) 9,480 d. Long-term capital gain (15%) 3,160 e. Long-term capital loss (28%) (16,590) After the capital gain and loss netting process, what is the amount and character of Coline's gain or loss?Coline has an overall net short-term capital gain of $ .On 1, 2020, the tax asset Complex of P12,800,000 for P18,300,00 for The income recognized on 31, 2019 in at which The tax was to a of P500,000 The for the tax rent of P6,000,000 on 1, entire is tax Pro Problem 16-13 (IFRS) Complex Company reported pretax accounting inco P6,2 tax rate is 30%. Incl P450,000 and no deferred tax liability. The deferred tax asset was due to a provision of P500. Th of The other reason for the deferred tax asset was res, P1,000,000 collected in 2019 but earned only in 2020 time it was tax deductible. ta: Life insurance premiums of P200,000 were recognized o year on key officers for 2020 and 2021. ye The entity paid for a two-year casualty insurance for P6,000,000 on January 1, 2020. The entire premium is to deductible when paid. The entity collected rent from leasing some of its equipment The rent is recognized as revenue when earned but taxahla when collected. 2020 2021 3,300,000 2,500,000 Rent collected 3,500,000 3,300,000 Rent earned The entity had trading…
- Aqua Corporation purchases nonresidential real property on May 8, 2020, for S1, 630, 000. Straight - line cost recovery is taken in the amount of $163, 000 before the property is sold on November 27, 2023, for S2, 445,000.a. Compute the amount of Aqua's recognized gain on the sale of the realty.b. Determine the amount of the recognized gain that is treated as § 1231 gain and the amount that is treated as § 1250 recapture (ordinary income due to § 291). § 1231 gain:§ 1250 recapture (ordinary income due to §Aqua Corporation purchases nonresidential real property on May 8, 2018, for $2,080,000. Straight-line cost recovery is taken in the amount of $208,000 before the property is sold on November 27, 2021, for $3,120,000. a. Compute the amount of Aqua's recognized gain on the sale of the realty. b. Determine the amount of the recognized gain that is treated as 5 1231 gain and the amount that is treated as 5 1250 recapture (ordinary income due to § 291). § 1231 gain: § 1250 recapture (ordinary income due to § 291):Aqua Corporation purchases nonresidential real property on May 8, 2019, for $1,650,000. Straight-line cost recovery is taken in the amount of $165,000 before the property is sold on November 27, 2022, for $2,475,000. Question Content Area a. Compute the amount of Aqua's recognized gain on the sale of the realty $_______________ Determine the amount of the recognized gain that is treated as § 1231 gain and the amount that is treated as § 1250 recapture (ordinary income due to § 291). b. § 1231 gain: $_____________ § 1250 recapture (ordinary income due to § 291): $_______________________
- 5. Use the following information for the next three (3) questions: On July 1, 2021 Captain Universe Company declared as property dividends 10,000 shares held as investment in associate with carrying amount of P4,000,000. Cost of disposal is immaterial. Information on fair values is shown below: Date Fair Value July 1, 2021 P3,200,000 December 31, 2021 4,400,000 February 1, 2022 3,800,000 Questions: The entries on July 1, 2021 include all of the following except Group of answer choices A debit to retained earnings for P3,200,000 A debit to impairment loss for P800,000 A debit to non current asset held for disposal to owners for P4,000,000 A credit to property dividends payable for P3,200,0001.) On April, 2021, Queen Corporation paid P800,000 for the assets a liabilities of Jack Company. The book value of assets and liabilities of Jack Company on April 1, 2021. follow: (20pts) Cash 80,000 Inventory Plant and Equioment (net of accumulated depreciation of P320,000) 240,000 480,000 180,000 Liabilities On April 1, 2021, it was determined that the inventory of Jack had a fair value of 190,000 and the plant and equipment (net) had a fair value of 560,000. Question: Compute for the amount of goodwill resulting from the Business Combination? 2) On May 31 2021 Dear Company has assets and liabilities with the following fair values:The Verba Company accounts for non-current assets using the revaluation model. On 30 June 2020, Verba classified a freehold property as held for sale in accordance with PFRS5. At that date the property's carrying amount was P290,000 and the balance on the revaluation reserve was P20,000. At that date its fair value was estimated at P330,000 and the costs to sell at P20,000. At 31 December 2020 the property's fair value was estimated at P325,000 and the costs to sell at P25,000. What amount should be included as an impairment loss in Verba's profit or loss for the year ended 31 December 2020?