On October 31, 2022, ABC Inc. declared a building held as owner-occupied property with an original life of 10 years as dividend distributable to stockholders on January 31 of the following year. This was acquired at P800,000 on October 31, 2021. The property had fair market value P900,000 on October 31, 2022. On December 31, 2022 the value of the property declined to P700,000. The property was transferred to shareholders on January 31 when the prevailing fair value was at P800,000. What is the gain or loss to be recognized in the profit or losses as a result of the distribution of the property dividends on January 31? O 100,000 O 200,000

On October 31, 2022, ABC Inc. declared a building held as owner-occupied property with an original life of 10 years as dividend distributable to stockholders on January 31 of the following year. This was acquired at P800,000 on October 31, 2021. The property had fair market value P900,000 on October 31, 2022. On December 31, 2022 the value of the property declined to P700,000. The property was transferred to shareholders on January 31 when the prevailing fair value was at P800,000. What is the gain or loss to be recognized in the profit or losses as a result of the distribution of the property dividends on January 31? O 100,000 O 200,000

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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On October 31, 2022, ABC Inc. declared a building held as owner-occupied property with an original life of 10 years as dividend distributable to stockholders on January 31 of the following year. This was acquired at P800,000 on October 31, 2021. The property had fair market value P900,000 on October 31, 2022. On December 31, 2022 the value of the property declined to P700,000. The property was transferred to shareholders on January 31 when the prevailing fair value was at P800,000. What is the gain or loss to be recognized in the profit or losses as a result of the distribution of the property dividends on January 31? A.300,000 B. None C.200,000 D.100,000
Cred Company’s board of directors declared a property dividend to its incorporators in the form of the company’s equipment and machinery that had a carrying amount on June 30, 2020, the date of declaration of P5,000,000. The fair value less cost to distribute of these assets on the same date amounted to P5,500,000. The date of distribution was scheduled on January 31, 2021. On December 31, 2020, the fair value less cost to distribute of the machinery and equipment was estimated at P4,800,000 and further declined on the date of distribution on January 31, 2021, at a fair value less cost to distribute of P4,300,000. - What is the amount to be recognized in profit or loss for the year ended December 31, 2020? - What is the amount to be recognized in profit or loss in 2021 for the distribution?
H1.
On January 1, 2020, Peasy Corporation acquired 60 percent of Squeezy Corporation's voting common stock. On that date, Peasy reported buildings and equipment on its general ledger at a book value of $66000. 01/01/20, the fair value of the Peasy's buildings & equipment was $59000. On 01/01/20, Squeezy reported buildings and equipment on its general ledger at a book value of $63000. On that same date, the fair value of the Squeezy's buildings & equipment was $90000. What will be the amount at which buildings and equipment will be reported in consolidated balance sheet immediately following the acquisition? BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE,
On October 31, 2022, ABC Inc. declared a building held as owner-occupied property with an original life of 10 years as dividend distributable to stockholders on January 31 of the following year. This was acquired at P800,000 on October 31, 2021. The property had fair market value P900,000 on October 31, 2022. On December 31, 2022 the value of the property declined to P700,000.The property was transferred to shareholders on January 31 when the prevailing fair value was at P800.000. The entry to record the declaration of the property dividends would include a debit to retained earnings of:a. 900,000 b. 800,000 c. 700,000 d. 1,000,000
Cred Company’s board of directors declared a property dividend to its incorporators in the form of the company’s equipment and machinery that had a carrying amount on June 30, 2020, the date of declaration of P5,000,000. The fair value less cost to distribute of these assets on the same date amounted to P5,500,000. The date of distribution was scheduled on January 31, 2021. On December 31, 2020, the fair value less cost to distribute of the machinery and equipment was estimated at P4,800,000 and further declined on the date of distribution on January 31, 2021, at a fair value less cost to distribute of P4,300,000. - What is the carrying amount of the machinery and equipment to be distributed as property dividends on December 31, 2020? - What is the dividend payable recognized on June 30, 2020?
Fullerton Corporation owns 100% of Irvine Corporation's common stock. On January 2, 2020, Fullerton sold machinery with a carrying amount of $30,000 to Irvine Corp for $50,000. Irvine Corp is depreciating the acquired machinery over a 10-year life using the straight-line method. The related net adjustments to compute the 2020 and 2021 consolidated income (gain, loss, depreciation expense, etc.) before income tax would be an increase (decrease) of: Select one: a. $(16,000) for 2020 and $4,000 for 2021 b. $(18,000) for 2020 and $2,000 for 2021 c. $(20,000) for 2020 and $2,000 for 2021 d. $(20,000) for 2020 and $0 for 2021
P Pea X Revi X Bb C5 X Bb Exa X Bh Cha X ome/chronos/u-19f83004173f0d834b7abbd296f8794680a04cd4/MyFiles/Downloads/The%20Accounting%20Cycle.pdf Required: 1. Journalize and post the November transactions for Ruiz Consulting. 2. Prepare a Trial Balance as of November 30. 3. Prepare and post adjusting entries for the month ended November 30. a. Expired insurance, $80 b. Supplies on hand at November 30, $900 C. Monthly depreciation of computer, $250 d. 20% of advance fee from Bryant Brokerage was earned by November 30 e. Accrued 3 days wages, $360 4. Prepare an Adjusted Trial Balance. 5. Prepare the following Financial Statements a. Income Statement for the month ended November 30. b. Statement of Owner's Equity for the month ended November 30. C. Balance Sheet as of November 30. 6. Prepare and post the closing entries.
On October 31, 2022, ABC Inc. declared a building held as owner-occupied property with an original life of 10 years as dividend distributable to stockholders on January 31 of the following year. This was acquired at P800,000 on October 31, 2021. The property had fair market value P900,000 on October 31, 2022. On December 31, 2022 the value of the property declined to P700,000. The property was transferred to shareholders on January 31 when the prevailing fair value was at P800,000. What is the gain or loss to be recognized in the profit or losses as a result of the distribution of the property dividends on January 31? 200,000 None 300,000 100,000
Assume that, on January 1, 2021, Carnival Corporation paid $2,320,000 for its investment in 33,000 shares of Sphinx Inc. Further, assume that Sphinx has 110,000 total shares of stock issued and estimates an eight-year remaining useful life and straight-line depreciation with no residual value for its depreciable assets. At January 1, 2021, the book value of Sphinx's identifiable net assets was $7,340,000, and the fair value of Sphinx was $10,000,000. The difference between Sphinx's fair value and the book value of its identifiable net assets is attributable to $1,850,000 of land and the remainder to depreciable assets. Goodwill was not part of this transaction. The following information pertains to Sphinx during 2021: Net Income $ 400,000 Dividends declared and paid $ 240,000 Market price of common stock on 12/31/2021 $ 80 /share What amount would Carnival Corporation report in its year-end 2021 balance sheet for its investment in Sphinx Inc.?