Salmyia bought land, buildings and equipment for a combined cash payment of $800,000. The estimated fair value of the assets are: land: $200,000; buildings, $500,000 and equipment $300,000. The amount capitalized for Equipment is: Select one: O a. $300,000 O b. None of the these answers O c. $200,000 O d. $160,000 O e. $240,000
Q: In one month, a c credit accounts a recorded in the s OA. $250, OB. $320, OC. $180, OD. $70,0
A: Cash Flow Statement- A cash flow statement is an important component of the company's financial…
Q: Learning Task 3: Prepare Adjusting Entries in a two-column journal: 1. On June 30, 2018, Mr. De…
A: Journal entries are required to record the transactions of a business in a chronological manner.…
Q: a) Discuss the procedures to be followed by you at the time of examining the evidences? b) How can…
A: Audit inquiry: An auditor questions management about specific business transactions or occurrences…
Q: Ending retained Earnings balance to be?
A: Introduction: Retained earnings: Retained earnings are shareholders funds. Part of profit is…
Q: in November 4, 2019, Blue Company acquired an asset (27.5-year residential real property) for…
A:
Q: On April 10, 2019, Shen paid $48,650 for corporate stock. Shen died on July 14, 2021, when the stock…
A: Given data, Purchase price of stock =$48,650 On July 14, 2021, when the stock was worth $29,190 For…
Q: Journal entry? Direct labor expense for Job C15 was $24,128. Actual overhead was incurred on account…
A: Factory overhead applied = 200℅ of direct labor Direct labor= $ 24128 Applied factory overhead =$…
Q: O.K. Company uses a job order cost acc asis of direct labor costs. O.K. expects to incur $1,400,000…
A: Overhead application rate = (Budgeted overhead cost/ Budgeted direct Labor cost) x 100
Q: Daube Industries’ operations for the month of October are summarized as follows: Provided $2,500…
A: Introduction: A journal entry is often used to record a business recorded in the accounting records…
Q: Company Y has the following inventory data: August 1 Beginning inventory 20 units at $10 Purchases 8…
A: When average cost method is used in perpetual system average unit cost is calculated each time a…
Q: ginning work in process in the finishing department was 75% complete as co conversion. Direct…
A: Units Accounted for =Beginning WIP units + Units started this period…
Q: How will the increase in the price of soft drinks affect the demand for soft drinks? How much…
A: Prices affect the business revenue as it is directly associated with the revenues which are…
Q: Sheffield Corp. expects direct materials cost of $5 per unit for 110000 units (a total of $550000 of…
A: Standard material cost is based on the per-unit rate of material and the budgeted material cost is…
Q: For many years, Manama Corporation has used a straightforward absorption costing approach to…
A: Manama Corporation has been following absorption based costing approach. Absorption costing is the…
Q: Question 3 Which of the following OA. Determining OB. Provides time OC. Encourages in O D. Promotes…
A: Capital Allocation involves use of different investment strategies to generate maximum benefits from…
Q: Journal entries? February 2 February 7 February 14 February 15 Pay $600 for radio advertising for…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: G, Total Asset Turnover Sales/ Total Assets g. Asset Turnover h. Comment on the…
A: Ratios Analysis- Fundamental equity analysis includes ratio analysis. Analysts and investors use…
Q: Assuming that total assets were $5,660,000 at the beginning of the current fiscal year, determine…
A: (Note: Since you have posted a multi-part question, we will solve the first three sub-parts for you.…
Q: View Policies Show Attempt History Current Attempt in Progress K. Decker, S. Rosen, and E. Toso are…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: The Goods in Process Inventory account for the AB Corp. follows: Goods in Process Inventory…
A: This question requires us to calculate the Cost of units transferred to finished goods. Cost of…
Q: What effect will this adjustment have on the accounting recor Unearned Fees 6,375 Fees Earned 6,37 O…
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.
Q: A payment of $4,500 was made into an account at the end of every 3 months for 12 years. a. If the…
A: a) P = 4,500 + 4,500 = 9,000 r= 6% t= 5 n= 12 Future value = P1+rnnt= 9,0001+0.061260=…
Q: Sheridan Company manufactures a product with a standard direct labor cost of two hours at $14 per…
A: Variances are calculated to determine the deviation of actual data from the standard data. The…
Q: Profitability Analysis Alex Enterprises reports the following information on its year-end income…
A: The gross profit is calculated as difference between sales and cost of goods sold. The operating…
Q: 3. Prepare a worksheet for the month of July from the following trial balance. k 1. Gereluk Trial…
A:
Q: Secret recipe Company shows $130,000 worth of assets on its December 31, 2009, balance sheet if the…
A: Accounting equation states that assets equals to sum of liabilities and shareholders equity. Assets…
Q: ow much must be invested now to receive $23,000 for 10 years if the first $23,000 is received one…
A: Present value of annuities would give the amount required today considering the interest rate and…
Q: PA4-4 (Algo) Identifying and Preparing Adjusting Journal Entries [LO 4-1, LO 4-2, LO 4-3, LO 4-6]…
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period. The…
Q: n August 31, 2020, Southampton Co. acquired all of the common stock of Brighton Company, which…
A: Impairment Loss- An impairment loss is defined as a decline in an asset's carrying value caused by a…
Q: takeover is the acquisition of control over a corporation through a purchase of sub O True O False
A: Takeover means when one company purchase another company's majority or substantially all of its…
Q: Question 12 At the 15 January 2019, the amount of Retained earnings reported by Moon Corporation is…
A: Retained earning is the accumulation of the net income earned by the organization after deduction of…
Q: The following information is relevant to the calculation of the sales figure for Ruben, a sole…
A: Under the sales revenue in the profit or loss statement, the aggregate of cash sales and credit…
Q: In 2012, an apartment building was purchased. The depreciation on the building was $236,510, and it…
A: Aging is an accounting phrase that refers to a manner of allocating the price of a tangible or…
Q: $1500 is invested semi-annually for 3 years into a fund that pays 6.8% per year, compounded semi-…
A: i= interest Interest = 6.8%*1/2= 3.4%
Q: View Policies Current Attempt in Progress Ivanhoe Company purchased a new machine on October 1,…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: Question Content Area Based on the following data, what is the accounts receivable turnover? Sales…
A: Accounts receivable: It refers to the funds owed by the customer for the purchase of goods and…
Q: Perform a horizontal analysis for the balance sheet entry "Cash" given below. That is, find the…
A: In Horizontal Analysis, the comparison is made between different periods of the business entity. In…
Q: Service Revenue 233,900 Office general expense 2,500 Salaries and wages expense 20,000 Utility…
A: The requirement is to record journal entries and prepare financial statements i.e., income…
Q: n integrated report is intended to be more than a summary of information in other communications…
A: It is a report to communicate how an enterprise's planning, strategies, governance, efficiency and…
Q: Learning Task 2: Journalize the entries for the following adjustments on December 31, the ed a the…
A: At the end of each accounting period, business wants to report its incomes, expenses, assets and…
Q: Finance professionals rely more on cash than accounting earnings for decision making purpose because…
A: The Accounting are calculated as per the financial reporting framework and prepare by the accountant…
Q: Net income? Accounts Debit Credit (OMR) Cash Capital 100,000 (OMR) 120,000 1600
A: Introduction: Income statement: All revenues and expenses are to be shown in Income statement. It…
Q: Below are four levels of ERP value realization:
A:
Q: Complete the following manufacturing cost schedule (a through j) for Lazer Tag. Parts Produced…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: 1. Materials were purchased on account for $35,425. 2. Materials were requisitioned to begin work on…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
Q: Presented below is information related to Muharraq Company. Cost $484,000 Retail $500,000 Beginning…
A:
Q: Bad account inc. sold $10000000, 5 year, 3%, semi-annual bonds for $9124794 on Jan 1, 2022. From its…
A: Interest expense is 456239.7 Amount paid to Lawyers would not affect the carrying amount.
Q: Lucent Technology maintains a gross margin of 40% on all of its merchandise. In April the company…
A: The total of all costs utilized to manufacture a product or service that has been sold is known as…
Q: The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal…
A: A trial balance is the summary of the general ledger balances. And the total of debits and credits…
Q: The following balances are extracted from the books of a commercial establishment on 31/12/2021…
A: Financial statements are the summaries showing net and gross losses and profits, assets and…
Step by step
Solved in 3 steps
- Suppose the subject's net operating income is $100,000, the direct capitalization rate of the land is 3.5%, the direct capitalization rate of the improvements is 6.0%, and the value of the improvements is $750,000. What is the overall value of the subject property (round to the nearest thousand)? A. $2,321,000 ⒸB. $2,036,000 OC. $1,571,000 OD.$1,286,000A purchased B, paying $850,000 cash. The books values and fair values of acquired assets and liabilities were: Book asset - Fair Value Current assets net: $130,000 - $125,000 Property, plant, equip: 600,000 - 750,000 Liabilities: 175,000 - 175000 A would record goodwill of: A. $0. B. $150,000 C. $345,000 D. $850,000A SE company has on its books for its proved property: P/P- tangible assets $50,000 Well and E&F $220,000 Accumulated DD&A $32,000 If the entire proved property is sold for $220,000, what will be any gain or loss? Accouinting
- OCD exchanged old realty for new like-kind realty. OCD’s adjusted basis in the old realty was $31,700 ($60,000 initial cost − $28,300 accumulated depreciation), and its FMV was $48,000. Because the new realty was worth only $45,000, OCD received $3,000 cash in addition to the new realty. Required: a-1. Compute OCD's realized gain. a-2. Determine the amount and character of any recognized gain. b. Compute OCD’s basis in its new realty.Calculate and allocate basis for the following problems. 1. A property is acquired for a purchase price of $230,000 cash plus acquisition costs of $20,000. The tax assessment for this property is as follows: Assessed Value Land Improvements Total assessments $40,000 160,000 $200,000 a. What is the acquisition basis for this property? b. What is the allocation for land? c. What is the allocation for improvements?Malik Edson has the following assets: • Land with ACB of $60,000 Building with a cost of $105,000, and UCC of $79,000. Malik sells both of land and building in a single transaction for $219,000. The estimated FMV of each was: • Land: $146,000 • Building: $73,000 How much capital gain and terminal loss will Malik realize on this transaction? Choose the correct answer. A. capital gain of $73,000, terminal loss of $32,000 B. capital gain of $73,000, terminal loss of $6,000 C. capital gain of $54,000, terminal loss of $0 D. capital gain of $80,000, terminal loss of $0
- amount of P650,000 and a fair value P500,000. any exchanged a delivery truck costing Bronze Co P1.000,000 for a parcel of land. The truck had a carrying a The entity gave P600,000 in cash in addition to the truck as part of this transaction. It is expected that the cash flows from the assets will be significantly different. The previous owner of the land had listed the land for sale at P1,200,000. At what amount should Bronze record the land? a. 1,100,000 b. 1,250,000 c. 1,150,000 d. 1,200,000Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book valueof $500,000 and a fair value of $700,000. Kapono paid $50,000 cash to complete the exchange. The exchangehas commercial substance.Required:1. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value ofthe new land?2. Repeat requirement 1 assuming that the fair value of the farmland given is $400,000 instead of $700,000.3. Repeat requirement 1 assuming that the exchange lacked commercial substance.A Ltd purchases the B Ltd for the following consideration of: Cash : $150 000 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?
- Assume the total sales price and cost of a property are $2,000,000 and $1,100,000, respectively, so that the total profi t to be recognized is $900,000. Th e amount of cash received by the seller as a down payment is $300,000, with the remainder of the sales price to be received over a 10-year period. It has been determined that there is signifi cant doubt about the ability and commitment of the buyer to complete all payments. How much profi t will be recognized attributable to the down payment if: 1 . Th e installment method is used? 2 . Th e cost recovery method is used?Carlos Company purchased a building and land for $400,000 in total. Individually, the landappraised for $84,000 and the building appraised for $336,000. How much of the purchaseprice should be allocated to the cost of the land?a. $75,000b. $80,000c. $84,000d. $400,000A 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.