QUESTION 25How long must a capital asset be held to qualify for long term treatment?O A. Six monthsO B. One year and one dayOC. One yearO D. Same trade date one year from purchaseQUESTION 20The following taxes are deductible as itemized deductions with the exception of:O A. Local personal property taxesO B. Foreign real property taxesOC. Social security taxesO D. State income taxes

Name: QUESTION 25How long must a capital asset be held to qualify for long
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Description: QUESTION 25How long must a capital asset be held to qualify for long term treatment?O A. Six monthsO B. One year and one dayOC. One yearO D. Same trade date one year from purchaseQUESTION 20The following taxes are deductible as itemized deductions w

As per IRS An capital asset is qualified for short term or long-term treatment on basis of time…

Answered: QUESTION 25 How long must a capital…

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QUESTION 25 How long must a capital asset be held to qualify for long term treatment? O A. Six months O B. One year and one day C. One year O D. Same trade date one year from purchase

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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Problem 3 At the beginning of the current year, CBX Company sold a building with remaining life of 20 years and immediately leased it back for 5 years. Sales price at above fair value Fair value of building Carrying amount of building Annual rental payable at the end of each year Implicit interest rate Present value of an ordinary annuity of 1 at 12% for five periods 20,000,000 18,000,000 10,800,000 1,500,000 12% 12% 1. What amount should be reported as initial lease liability? 2. What amount should be recognized as cost of right of use asset? 3. What amount should be reported as gain on right transferred to the buyer-lessor? 4. What amount should be recognized as gross rental income of the buyer-lessor? 5. What amount should be recognized as depreciation of the building of the buyer-lessor?
Question 11. C Ltd has a fiscal year end of Sep. 30th. On Oct. 1, 20X8 C Ltd leases an asset to a lessee for a term of five years. The lessee is required to make five lease payments of £27,500, starting with Oct 1, 20X8. The fair value of the asset on Oct 1, 20X8 is £113,500. C Ltd incurs initial direct costs of £421 and the rate of interest implicit in the lease is 12%. At the end of the lease term, ownership of the asset will remain with C Ltd, the asset is expected to have come to the end of its economic life and to have a residual scrap value of £5,100. i) Provide two reasons for why this lease is a finance lease and not an operating lease. ii) Calculate the net investment in the lease at commencement. iii) Prepare lessor's journal entries for the year ending Sep. 30th, 20X9.
Question 19 At the beginning of current year, Don Rashed Company sold a building with remaining life. of 20 years and immediately leased it back for 5 years. Sales price is 20,000,000 for an 18,000,000 fair value. Upon reviewing the books of Don Rashed, the carrying amount of the building per FS is 10,800,000. The agreement consideration is 1500,000 with an implicit interest rate of 12%. What is the cost of right of use of asset?
Problem 25-7 (LG 25-4) Assume an Fl originates a pool of short-term real estate loans worth $39 million with maturities of five years and paying interest rates of 7 percent (paid annually). The loans are amortized. a. What is the average payment received by the FI (both principal and interest) if no prepayment is expected over the life of the loans? b. If the loans are converted into real estate certificates and the Fl charges a 150 basis points servicing fee (including insurance), what are the payments expected by the holders of the securities, if no prepayment is expected? (For all requirements, enter your answers in dollars not in millions. Do not round intermediate calculations. Round your answers to the nearest dollar amount.) × Answer is complete but not entirely correct. Average payment $ 9,511,737 b. Average payment $ 9,369,061 (X)
Question Content Area A six-year operating lease requires annual rent payments of $15,000 for years 1, 2, and 3, and annual rent payments of $10,000 for years 4, 5, and 6. The agreement also requires the lessor to pay a $2,800 annual insurance premium for the leased property. Which of the following amounts should be recognized as the rental revenue in year 1 by the lessor? $10,000 $16,800 $15,000 $13,500
Problem 11-2 On January 1, 2020, Gold Company entered into a 5-year lease of a floor of a building with the following terms: Annual rental for the first two years payable at thend of each year 200,000 Annual rental the next three years payable at the end of each year 300,000 Initial direct cost paid by lease 100,000 Leasehold improvement 250,000 Present value of restoration cost required by contract 50,000 Useful life of building 20 years Implicit interest rate 8% Discount rate for the restoration cost 5% PV of an ordinary annuity of 1 at 8% for two periods 1.783 PV of an ordinary annuity of 1 at 8% for three periods 2.577 PV of 1 at 8% for two periods 0.857 Required: 1.…
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QUESTION 36 Phoenix Agency leases office space. On January 3, Phoenix incurs $72,600 to improve the leased office space. These improvements are expected to yield benefits for 8 years. Phoenix has 6 years remaining on its lease. Compute the amount of amortization expense that should be recorded the first year related to the improvements. $15,675. $9,075. $12,100. $18,700. $6,600.
Question 12 A Php370,000 loan is to be amortized at 10% compounded semi-annually for 3 years. The semi-annual payment is Php67,173.49. From the given table below, what is the interest incurred in the second period? Period 0 1 2 3 4 5 6 Periodic Payment None Php67,173.49 Php67,173.49 Php67,173.49 Php67,173.49 Php67,173.49 Php67,173.49 Php9,250 Php59,371.58 Php252,704.93 Php 7,801.91 Interest Payment None Principal Repayment None Outstanding Balance Php370,000 12
1 pi • Fifty thousand pesos is deposited annually at an interest rate of 6% per annum compounded continuously. How many years will it accumulate to P 524,328?
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