The accounting policy is to depreciate the asset over 4 years on a straight line basis and to treat the grant as deferred income. What amount of income from the government grant is recognized in 2017?
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Queen Company purchased a varnishing machine for P3,000,000 on January 1, 2017. The entity received a government grant of P500,000 in respect of this asset. The accounting policy is to
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- A company purchased new mining equipment in year 2014 by paying $500,000 cash. The company used MACRS-GDS depreciation for tax purposes and sold the asset in year 2016. Note that MACRS depreciations are based on calender years. what is the depreciation that company claimed on the asset for 2017? * explain in full detailWHITE started constructing a building to be used for producing its goods in January 2021, WHITE incurred interest of $100,000 from its borrowings to finance the construction. In 2021, the Company also earned interest income of $20,000 and dividend income of $30,000 from its temporary placement of the proceeds According to IAS23, how much borrowing cost should be capitalized by in 2021?ndustrial Development Corporation (IDC) granted Naseer Pty(Ltd) R20 000 on 01 January 2021 to assist in the purchase of a manufacturing plant.The grant was conditional upon Naseer Pty(Ltd) purchasing the plant and manufacturing for a period of at least two unbroken years. If the conditions of the grant were not met, the terms of the grant required that the grant be repaid in full, immediately.The plant was purchased on 3rd January 2021 for R200 000 and was depreciated on the straight-line basis over its useful life of 4 years to a nil residual value.Other information:- Naseer ceased manufacturing on 31 March 2022 due to unforeseen circumstances.- The asset was not considered to be impaired and Naseer intended to resume manufacturing on the next year.- Ignore the effect of tax and VAT.- Assume that Naseer Pty(Ltd) recognises grants as grant income.- The year end is 31 December. Accounting for the above transactions in books for the financial year ended 31 December should be completed…
- Pearl Limited purchased an asset at a cost of $20,000 on March 1, 2023. The asset has a useful life of seven years and an estimated residual value of $2,200. For tax purposes, the asset belongs in CCA Class 8, with a rate of 20%. (a) Calculate the CCA for each year, 2023 to 2026, assuming Pearl's asset is eligible for the Accelerated Investment Incentive, and that this is the only asset in Class 8. 2023 2024 2025 2026 2024 2025 CCA 2026 $ TA (b) How would the calculation for each year from 2024 to 2026 change if the asset had been purchased in 2024? $ $ $ tA tA $ CCAMuskoko Inc. purchased a property for $1.800,000 in 2022. The carrying value of property was $1,500,000 when it was required to be tested for impairment at December 31, 2026. The fair value at December 31, 2026 is $1,250,000 and the present value of future cash flows from the production facility was calculated as S1.056.000 at December 31, 2026. What is the total impairment of the production facility. if any? Answers A-E A impairment gain of $ 5S0.000 B Impairment loss of $ 250.000 No impairment gain or loss D Impairmenit gain of $300.000 E mpairment loss of $ 444,000Chaz Corporation has taxable income in 2021 of $312,000 for purposes of computing the §179 expense and acquired the following assets during the year: Asset Placed in Service Basis Office furniture September 12 $ 780,000 Computer equipment February 10 930,000 Delivery truck August 21 68,000 Qualified improvement property September 30 1,500,000 Total $ 3,278,000 What is the maximum total depreciation deduction that Chaz may deduct in 2021?
- (Disposition of Assets) On April 1, 2017, Gloria Estefan Company received a condemnation award of $430,000 cash as compensation for the forced sale of the company’s land and building, which stood in the path of a new state highway. The land and building cost $60,000 and $280,000, respectively, when they were acquired. At April 1, 2017, the accumulated depreciation relating to the building amounted to $160,000. On August 1, 2017, Estafan purchased a piece of replacement property for cash. The new land cost $90,000, and the new building cost $400,000.InstructionsPrepare the journal entries to record the transactions on April 1 and August 1, 2017.1. On November 4, 2020, GT Corporation sells a piece of its equipment. GT Corporation had initially purchased the equipment for $350,000. The company had recorded $230,000 in depreciation for this piece of equipment as of the date of sale. If GT Corporation receive $150,000 cash when they sell the equipment, they will report a November 2020 Income Statement; if they instead receive $100,000 cash when they sell the equipment, they will on their report a a. $150,000 gain; $100,000 gain. b. $80,000 gain; $130,000 loss. c. $30,000 loss; $20,000 gain. d. $30,000 gain; $20,000 loss.On March 1, 2022, Wildhorse Company acquired real estate, on which it planned to construct a small office building, by paying $98,000 in cash. An old warehouse on the property was demolished at a cost of $ 11,000; the salvaged materials were sold for $ 3,100. Additional expenditures before construction began included $ 2,000 attorney's fee for work concerning the land purchase, $ 6,300real estate broker's fee, $ 10,800 architect's fee, and $ 18,200 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land. Cost of the land $ enter the Cost of the land in dollars
- On September 1, 2019, NATSU DRAGNEEL Company paid P2, 000, 000 for the purchase price of the equipment acquired. NATSU DRAGNEEL also paid P20, 000 for nonrefundable sales taxes and P130, 000 for installation cost. The equipments estimated useful life is 10 years and residual value of P300, 000. On January 1, 2023, NATSU DRAGNEEL revised the total useful life of the asset to 15 years from acquisition date and residual value to P150, 000. Compute: Using the half-year convention & double-declining balance method what is the depreciation expense for 2021?Prepare a schedule showing the intangible assets section of Cheyenne's balance sheet at December 31, 2020. CHEYENNE CORPORATION Intangible Assets Prepare a schedule showing all expenses resulting from the transactions that would appear on Cheyenne's income statement for the year ended December 31, 2020. CHEYENNE CORPORATION Expenses Resulting from Selected Intangible Assets Transactions < <On July 1, 2021, Catlyn Company sold a parcel of undeveloped land to a construction company for $540,000. The book value of the land on Catlyn's books was $140,000. Terms of the sale required a down payment of 10% of the selling price and 9 annual payments of 10% of the selling price plus interest at an appropriate interest rate due on each July 1 beginning in 2022. Catlyn has no significant obligations to perform services after the sale. Calculate the balance in the deferred gross profit account in 2022 applying the installment sales method. (Please round answer to the nearest dollar, i.e. $86,666.67 should be interested as 86667).
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