Phillips Corporation sold a fixed asset used in its operations for greater than its carrying amount. Phillips should report the transaction in the income statement using the:   A. Gross concept, showing the proceeds as part of revenues and the carrying amount as part of expenses in the continuing operations section of the income statement.   B. Net concept, showing the total amount as a component of other comprehensive income, net of taxes.   C. Net concept, showing the total gain as part of discontinued operations, net of taxes.   D. Net concept, showing the total gain as part of continuing operations , not net of taxes.

Q: Statement I: Under accrual accounting the computation of the entity’s net income is by deducting the…

A: Under accrual accounting, expense are recognized even if they are not actually paid and income is…

Q: A gain on the disposition of Section 1245 property is treated as ordinary income to the extent of:…

A: Section 1245 properties are defined by IRS includes any personal property whether tangible or…

Q: Question 3 Which of the following varies between the equity, initial value, and partial equity…

A: Question 3Which of the following varies between the equity, initial value, and partial equity…

Q: Which accounting principle requires that interest expense, or any expense for operations during a…

A: Since there are multiple question asked, Answer will be given for first question only, to get all…

Q: 1. Directly attributable costs include: I. Interest Expense when the asset is ready for use II.…

A: Directly attributable costs refer to costs that can be directly linked or traced to a specific…

Q: (R) The balance sheet elimination for an intercompany profit in land involves the deduction of the…

A: The Balance sheet, also known as the statement of financial position, is one of the three primary…

Q: NOTE 1-SUMMARY OF ACCOUNTING POLICIES Property, Plant and Equipment We review long-lived assets for…

A: This question appears to belong to the topic of accounting, specifically the accounting treatment of…

Q: Assume an income statement with the following classifications: Exercise 3 A. Revenues B. Cost of…

A: Income statement is the part of financial statement prepared to know the profits or losses of the…

Q: Any amount by which capital at the end of a period exceeds the amount required to maintain opening…

A: Any amount by which capital at the end of a period exceeds the amount required to maintain opening…

Q: TRUE OR FALSE? 1. Assets of the component held for sale shall be depreciated. 2. The income or loss…

A: The assets are treated as held for sale when the company intends to sell the assets in the near…

Q: Net operating loss carryforwards in the year of the loss Increase a pretax loss on the income…

A: Comment- Multiple Question Asked. Question 2  A deferred tax asset is an item in the Company's…

Q: 1. Which of the following are recognized as a liability? I. Cash dividends payable II. Scrip…

A: Note:- Since you have asked multiple questions, we will solve the first question for you. If you…

Q: Initial operating loss related to Property, Plant and Equipment should be A. Capitalized as part of…

A: Answer:-  Operating loss:- If a company's operational expenditures surpass its gross earnings, the…

Q: If the value implied by the purchase price of an acquired company exceeds the fair values of…

A: Goodwill on acquisition = Purchase consideration paid - Fair value of net identifiable assets…

Q: Which of the following is not considered in the determination of Total Assets after business…

A: In business combination , following are considered for determination of total assets : 1. Fair…

Q: When nonmonetary assets are exchanged, a company records the cost of the nonmonetary asset acquired…

A: When a non monetary assets is exchanged for another non monetary assets. Asset shall be organised.…

Q: Q7 How are transaction costs associated with the acquisition of financial assets recognized in the…

A: The transaction costs associated with the acquisition of financial assets depends on the…

Q: Contributions to capital from company's owners are

A: Contributions to capital from a company's owners represent the equity or ownership interest that…

Q: Which of the following statements is correct? Statement 1. Asset utilization ratios describe how…

A: Assets can be defined as the objects which are held by a firm for the purpose of generating future…

Q: What is depreciation? A) The process of allocating the cost of a tangible asset over its useful life…

A: ANSWER : 7 ​(A) Depreciation is the process of allocating the cost of a tangible asset over its…

Q: hen a firm disposes of a capital asset, the difference between the net book value of the asset and…

A: Basic Accounting Concept Capital gain or loss on transfer of assets

Q: Sitra Company, assuming that the exchange lacks commercial substance. Prepare the necessary journal…

A: 1. In case there is exhange of one asset with another Asset and the  Exchange lacks commercial…

Q: for the following intercompany transaction  state the principle to be used in accounting for…

A: In this question we have been given the current or the future event of transaction. We have to…

Q: entity discontinued an operation and disposed of the discontinued operation the transaction should…

A: Discontinued Operations are a part of the company operation which have been discontinued or shut…

Q: classify the given items as (operating / investing / financing), share the correct classification…

A: Statement of cash flows is prepared with a view to ascertain the flow of cash into and out of the…

Q: 5. S1: For the results of a component of an entity to be classified as discontinued operation,…

A: Answer:- 5 A is correct because both the statements are true. 1. For the result of component of an…

Q: Please answer with reason for all why the option is correct and why the other options are…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Under PFRS 3, when is a gain recognized in consolidating financial information? a. In a combination…

A: Introduction:- The merger and purchase of several smaller enterprises into a few considerably bigger…

Q: wo main ways are relevant to compare an entity's capital at the beginning and end of an accounting…

A: The right answer is option b. i & iv

Q: Which of the following indicates that a decision has precedential value for future cases?

A: Temporary book-tax differences arise when there is a difference between the amount of income or…

Q: Return on Assets, or ROA, can be expressed as the product of two ratios.  Which two? Select one: a.…

A: Return on Assets (ROA) is an important financial ratio that indicates a company's efficiency in…

Q: 5- The ratio of Profit Before Tax Assets is known as? a-Net Profit after Taxes b-Return on assets…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Harkey Corporation's balance sheet and income statement appear below: Comparative Balance Sheet…

A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…

Q: Gem Company classifies a portion of its retained earnings as appropriated for loss contingencies.…

A: Retained earning is the earning accumulated over a period of time. It is used for various purposes…

Q: 5. How should accounting fees for acquisition be treated? A. Expensed in the period of acquisition…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: How would a property dividend declared before end of reporting period and to be distributed in the…

A: Dividend is distribution of profits to shareholders from retained earnings. Retained earnings is the…

Q: Which are segments are reportable segments?  Is there a sufficient number of reportable segments…

A: As per US GAAP, a segment should pass the following test to become a reporting segment: -(1) 10%…

Q: None of the above Indicate by letter how each of the following should be classified: Advertising…

A: 1. Advertising expense - General and Administrative expense 2. Amortization of a patent held as an…

Q: if the value implied by the purchase price of an acquired company exceeds the fair values of the…

A: Acquisition refers to purchase of a company by another company by paying purchase consideration in…

Q: While calculating operating profit which will be added to net profit a. Profit on Sale of Asset b.…

A: Operating profit is the net income generated from the operating activities of the business. Any non…

Q: Flag question: Question 32   What is discontinued operation? Group of answer choices -no longer…

A: In financial term, discontinued operations defined as some parts of the business or products that…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.