QUESTION 2 Excel acquired a piece of land for RM200M on 1 January x5. The land was classified as investment property and measured using the cost model. On 1 January x9, Excel changed its accounting policy to fair value measurement for the land. It was able to derive the fair values of the land only from 31 December x8 was RM290m. The fair value of the land on 31 December x9 was RM313m. Retained earnings of Excel was RM250m on 1 January x9. Required: Discuss the effects of the change in accounting policy on the financial statements on 31 December x9

QUESTION 2 Excel acquired a piece of land for RM200M on 1 January x5. The land was classified as investment property and measured using the cost model. On 1 January x9, Excel changed its accounting policy to fair value measurement for the land. It was able to derive the fair values of the land only from 31 December x8 was RM290m. The fair value of the land on 31 December x9 was RM313m. Retained earnings of Excel was RM250m on 1 January x9. Required: Discuss the effects of the change in accounting policy on the financial statements on 31 December x9

Name: QUESTION 2Excel acquired a piece of land for RM200m on 1 Januaryx5. T
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: QUESTION 2Excel acquired a piece of land for RM200m on 1 Januaryx5. The land was classified as investment property andmeasured using the cost model.On 1 January x9, Excel changed its accounting policy tofair value measurement for the land. It was ab

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Zenata Co

A: The modified accelerated cost recovery system (MACRS) is a depreciation system used for tax purposes…

Q: Part A: On November 1, Ellery Corp. purchased land by transferring $50,000 cash and a building to…

A: A journal is a detailed account that records all the financial transactions of a business, to be…

Q: Firm OCS sold business equipment with a $23,000 initial cost basis and $10,015 accumulated tax…

A: calculation of OCS’s recaptured ordinary income and Section 1231 gain or loss on the sale are as…

Q: The revaluation-related entry on the company's income stat Income Statement ($) A -5,700 B -2,100 C…

A: An income statement is one of the three important financial statements used for reporting a…

Q: Firm OCS sold business equipment with a $23,000 initial cost basis and $10,015 accumulated tax…

A: calculation of recaptured ordinary income and Section 1231 gain or loss on the sale are as follows

Q: Impairment of a CGU ✰✰ Bow Ltd reported the following assets in its statement of financial position…

A: The first step is to calculate the carrying amount of the assets. The carrying amount is the…

Q: Prepare the entries on both companies' books, assuming the buildings are similar assets and there is…

A: The exchange of business assets means the transfer of assets between two entities or companies. The…

Q: Sansoni Services exchanged an asset with cost of $20,000 (now 30% depreciated) for a similar asset…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Hayday PLC. Trial Balance as at 31st December 2021 is shown below: £s Revenue Administrative…

Q: I want correct answer

A: The term "commercial substance" refers to the significance of the exchange in terms of future cash…

Q: QUESTION 1 Polycarp Ltd adopts revaluation model for subsequent measurement of its intangible…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Exchange of Assets Nabokov Company exchanges assets with Faulkner Company. Nabokov exchanges…

A: Recording new assets at fair value is a common accounting practice, especially under the fair value…

Q: Question 8.1.25 The following information relates to the sale of a piece of land in the current…

A: Capital Gain Reserve is the reserve that can be utilized when you make a sale of capital property…

Q: A Ltd purchases the B Ltd for the following consideration of: Cash : $150 000 Land: carrying…

A: Solution: Fair value of net asset of B Ltd = ($390,000 + $95,000 - $70,000) - $195,000 =$200,000

Q: Red Corp purchased land for $600,000 some years ago. Fair value was $800,000 at the beginning of…

A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…

Q: China Inn and Midwest Chicken exchanged assets. China Inn received delivery equipment and gave…

A: A gain or loss resulting from an exchange transaction is equal to the difference between the asset's…

Q: Blue Company owns equipment that cost $1,098,000 and has accumulated depreciation of $463,600. The…

A: Impairment loss occurs when the carrying amount of an asset exceeds its recoverable amount. The…

Q: 3M White Ski Resorts operates a series of ski resorts in northern Europe and reports under IFRS.…

A: Answer information:Step 1:Accounting for Land Under IFRS Cost Model and Revaluation…

Q: None

A: Step 1:1.Depreciation Expense: The depreciation expense for 2024 of $6,720 would increase the…

Q: Required: Disclose all information necessary in relation to the plant and factory buildings in the…

A: When discussing a company's financial and non-financial activities, transactions, and positions, the…

Q: Provide solution for this problem

A: Step 1: Introduction to the Exchange valueThe ratio at which one commodity may be swapped for…

Q: White Ski Resorts operates a series of ski resorts in northern Europe and reports under IFRS. On…

A: Journal entries are made to record the transactions as the first process in the books of accounts…

Q: Please given answer

A: Step 1: Calculation of the book value of the old equipment:Original cost of the old equipment:…

Q: OCD exchanged old realty for new like-kind realty. OCD’s adjusted basis in the old realty was…

A: a.When a assets are exchanged like-kind properties it a becomes nontaxable transaction and no gains…

Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

Topic Video

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Calculation

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

(CO F) XYZ Corporation purchased land and an office building for $2,800,000. The real estate contract did not specify the amounts to allocate to the land and to the building. An appraisal determined the fair market value (FMV) of the land to be $1.000,000 and the fair market value (FMV) of the building to be $3.000,000, a) Please calculate the basis of the land. Show your work. b) Please calculate the basis of the building. Show your work.
Sh4 Please help me. Solution Thankyou
Discuss briefly the role unions and government agencies play in the design of procedures for the HR management process.
Item 20 A company exchanged land and cash of $5,800 for similar land. The book value and the fair value of the land were $89,800 and $101,000, respectively. Assuming that the exchange has commercial substance, the company would record land—new and a gain on exchange of assets in the amounts of: Land Gain a. $ 106,800 $ 0 b. $ 106,800 $ 11,200 c. $ 95,600 $ 0 d. $ 95,600 $ 11,200 Multiple Choice
COTB MC Qu. 15-70 (Algo) Assume a company sold a... Assume a company sold a piece of equipment that had an original cost of $500,000 and accumulated depreciation of $300,000. The gain on the sale was $21,000. In addition, the beginning and ending balances in the company's Property, Plant, and Equipment account were $4,700,000 and $4,600,000, respectively. Based solely on the information provided, the company's net cash provided by (used in) investing activities would be: Multiple Choice $(179,000). $(200,000). O $(158,000). $(121,000).
Hw.71.
Questio n 12 On July 1, 2020 , Brandon SE purchased Mills Company by paying $140,000 cash. On July 1, 2020, the fair value of the net assets of Mills Company was as follows. Buildings (net) $ 30,000 Patent 8,000 Land 25,000 Accounts receivable 12,000 Cash 50,000 Accounts payable 10,000 What is the amount of goodwill to be reported at Brandon's statement of financial position on 31/12/2019? 25000 15000 Zero 35000 37°C Haze e to search DELL
A Ltd purchases the B Ltd for the following consideration of: Cash : $150 00 Land: carrying amount of the land is $120 000; fair value is $195 000. The statement of financial position of the B Ltd as at the date of acquisition shows assets of $390 000 and liabilities of $195 000. All assets are fairly valued except the B Ltd's building, which is in the accounts at $70 000 but has a fair value of $95 000. There are no contingent liabilities. Required: Calculate the value of goodwill? Note: Provide all workings. Do not just write the final answer.