The undepreciated Class 8 fraction (20% depreciable) at the beginning of 2002 is $72,000. In 2002, the company purchased a property of the same class for $100,000. In the same year the company sold equipment for $10,000. The FNACC at the end of 2003 is Answers: a) $138, 600 b) 162,000 c) $110,880 d ) 172,000

The undepreciated Class 8 fraction (20% depreciable) at the beginning of 2002 is $72,000. In 2002, the company purchased a property of the same class for $100,000. In the same year the company sold equipment for $10,000. The FNACC at the end of 2003 is Answers: a) $138, 600 b) 162,000 c) $110,880 d ) 172,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On 1 January 20X8 Davidoff Co decided to revalue its land for the first time. A qualified property valuer reported that the market value of the land on that date was $45,000. The land was originally purchased 6 years ago for $32,000 The required provision for income tax for the year ended 31 December 20X8 is $15,500. The difference between the carrying amounts of the net assets of Davidoff (including the revaluation of the land above) and their (lower) tax base at 31 December 20X8 is $38,000. The opening balance on the deferred tax account was $5,500. Davidoff’s rate of income tax is 30%. Required Prepare extracts of the financial statements to show the effect of the above transactions.
On June 1, 2015, Skylark Enterprises (not a corporation) acquired a retailstore building for $500,000 (with $100,000 being allocated to the land). Thestore building was 39-year real property, and the straight-line cost recovery methodwas used. The property was sold on June 21, 2019, for $385,000.a. Compute the cost recovery and adjusted basis for the building using Exhibit 8.8from Chapter 8.b. What are the amount and nature of Skylark’s gain or loss from disposition ofthe property? What amount, if any, of the gain is unrecaptured § 1250 gain?
Ashvin
Several years ago, a company acquired an asset at a cost of $400,000. Last year, the company recognized an impairment loss of $25,000 and properly reduced the asset's book value from $250,000 to $225,000. Using the asset's new base of $225,000, the company calculates depreciation for the current year to be $10,000, bringing the book value down to $215,000. However, the company has also determined that the asset's fair value has recovered and is now estimated to be $260,000. How should the company measure the asset on its current balance sheet? O The company should reverse the prior impairment and measure the asset at its fair value prior to the initial impairment of $250,000. O The company should not reverse the impairment and should depreciate the asset by $10,000 to a new book value of $215,000. The company should not reverse the impairment and should not depreciate the asset further, leaving the book value at $225,000. O The company should reverse the prior impairment and measure…
Use this information to answer the following 12 questions: Jefferson Company acquired equipment on January 2, Year 1, at a cost of $10 million. The equipment has a five-year life, no residual value, and is depreciated on a straight-line basis. On January 2, Year 3, Jefferson Company determines the fair value of the asset (net of any accumulated depreciation) to be $12 million. Determine the impact the equipment has on Jefferson Company's income in Year 1 using IFRS, assuming the revaluation method is used for measurement subsequent to initial recognition.
DEF Company sells plant assets that originally cost $150,000 for $52,000 on December 31, 2011. The accumulated depreciation account had a balance for $60,000 after the current year’s depreciation of $15,000 had been recorded. The company should recognize a:A) $100,000 loss on disposalB) $40,000 gain on disposalC) $40,000 loss on disposalD) $25,000 loss on disposal