Question Content Area Kansas Company acquired a building valued at $163,000 for property tax purposes in exchange for 12,000 shares of its $4 par common stock. The stock is widely traded and selling for $15 per share. At what amount should the building be recorded by Kansas Company? a. $48,000 b. $131,500 c. $180,000 d. $163,000

Question Content Area Kansas Company acquired a building valued at $163,000 for property tax purposes in exchange for 12,000 shares of its $4 par common stock. The stock is widely traded and selling for $15 per share. At what amount should the building be recorded by Kansas Company? a. $48,000 b. $131,500 c. $180,000 d. $163,000

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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D Question 10 An entity reported the following assets and liabilities at year end: Amount Property Inventory 7M Plant and Equipment 4M Liabilities 4M Tax base Accounts receivable 3M 5.5M Carrying 10M 5M 2.5M 2.4M 6M The entity had made a provision for inventory obsolescense of 1.5M. Further, an impairment loss against accounts receivable of 600,000 has been made. the tax is 30% What amount should be reported as deferred tax liability?
Problem 6 Purchased building by issuing 15%, P1, 500, 000 face value bonds. On the date of acquisition, the fair value of the building is P2, 200, 000 while the bonds are quoted at 109.Journal entry to record the purchase:what is the rule in solving the problem?
PROBLEM 1 On January 1, 2020 Multinational Company was organized with an authorized share capital of P10,000,000 consisting of 100,000 shares of P100 par value, one half of which was immediately sold for cash at P110 per share. In February, the entity acquired a tract of resource land at a cost of P3,000,000 which was paid in cash. Also, the entity purchased for cash mining equipment of P800,000. The geological survey of the resource property indicated an estimated content of 1,000,000 units. During the year ended December 31, 2020, the entity mined 90,000 units of which 85,000 units were sold for a cash price of P50 per unit. The entity paid the following during the year: Mining labor and other direct costs 2.268,000 Administrative expenses 500,000 Determine: (1)Depletion expense reported in 2020 statement of profit or loss (2)Depreciation expense reported in 2020 statement of profit or loss (3)Dividend declared per share for 2020
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QUESTION 17 The following information is for SQU Company: Not yet answered Trademark 70,000, Share Capital 120,000; Land 90,0003; Marked out of 1.0o Retained Earnings 250,000; Building 100,000%3; Accumulated Depreciation 20,00o; Land held for investment 75,000; Accounts Payable 60,000; Prepaid P Flag question Insurance 30,00o; Salaries Payable 10,000; Inventory 70,000; Mortgage Payable 90,000; Accounts Receivable 50,000; Cash 65,000. The total amount of assets to be classified as current assets and non-current assets is Select one: a. R.O.550,000. b. R.O.75,000. c. R.O.180,000. d. R.O.530,000.
QUESTION 4 Jones Company purchases a piece of land for $300,000. Jones Company paid $3,000 in brokerage commissions, $10,000 to clear and remove an unwanted building, $5,000 for building permits to construct a new building, $500,000 to construct a new building, and $5,000 in delinquent property taxes What is the amount to be capitalized (debited) to the Land account from this purchase? ANSWER $300,000 SU8,000 S821000 $30,000 DON'T KNOW YET
Question No. 17
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Multiple Choice a. $900. b. $1,400. c. $1,900. d. $2,400. e. $2,600.
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