What amount of fair value gain should the company report in profit or loss resulting from reclassifying its land and building to investment property?
Q: You Company owns land and building classified as investment property . The land and building is…
A: When company owns land and building classified as investment property and company uses the fair…
Q: Required information [The following information applies to the questions displayed below) Solich…
A: Amortization expense for a patent refers to the gradual expensing of the cost of acquiring or…
Q: At December 31, 2023, Cord Company's plant asset and accumulated depreciation and amortization…
A: A fixed asset's component that is regarded to have been used up in the current period gets…
Q: Total value of land and building is OMR 360,000 as on June 2021.The company uses only OMR 300,000…
A: Property , plant and equipments means the asset which is used by company for many years to come for…
Q: Investment Property Determine the cost of the following items of investment acquired by Sasha…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The balance sheet of Alpha Ltd on 31/12/21 is the following ASSETS Plot of land Building…
A: Balance sheet is one of the financial statement that is prepared to know the financial position of…
Q: Determine the Depreciation Expense for the calendar year 2019 on the following non - current assets…
A: Lets understand the basics. In straight line basis, depreciation is calculated in equal installment…
Q: On January 1, 2020, the historical balances of the land and building of Twang Company are:…
A: Appraised value of building (Fair value) = P350,000,000 Salvage Value…
Q: The ending net book value of Property. Plant&Equipment (PP&E) in year 1 and year 2are $5000 and…
A: If there was no capital expenditure, PP&E would be $410,000 ($500,000 - $90,000). But the…
Q: D. AMORTIZATION OF INTANGIBLE ASSETS Harper Company, established in 2019, has the following…
A: Journal entry: It can be defined as the recording of financial events and transactions that have…
Q: The following data relate to store equipment of Swift Company:…
A: Amount of assets that is acquired during the year can be calculated as: = Book value at closing +…
Q: a. What is the maximum amount of §179 expense ACW may deduct for 2023? b. What is the maximum total…
A: Deduction:- A deduction is a cost that a business can subtract from its revenue. It lowers the…
Q: Determine the Depreciation Expense for the calendar year 2019 on the following non - current assets…
A: Cost = P120,000 Salvage Value = P4,000 Estimated life = 5 years Depreciation per year =…
Q: The following data relate to store equipment of Swift Company:…
A: Net book value of Store equipment sold = Sales value + Loss on sale Accumulated depreciation on…
Q: P10.5A Journalise a series of equipment transactions related to purchase, sale, retirement, and…
A: Depreciation :— It is the decline in the value of asset due to continuos use of asset. Straight Line…
Q: The following items were listed at cost by Cake Company and are depreciated according to the…
A: Property, plant, and equipment (PP&E) are tangible, long-term assets that are used to generate…
Q: [The following information applies to the questions displayed below.] Togo's Sandwich Shop had the…
A: An asset is depreciated when its value is expected to decrease over a period of time or its use.…
Q: DEF Company owns land and building being used for its operations and administrative functions. The…
A: Difference between the fair value and Book value would be reported as gain or loss on property to be…
Q: 1. Calculate the accumulated depreciation on the equipment at December 31, 2023.
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: A company provided the information below on January 1, 2022. Land Building Accumulated depreciation…
A: Revaluation Surplus :— Whenever the Value of Any Capital Assets changes then the increased amount in…
Q: On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which…
A: Particulars Current Appraised Value Original Cost Land P2,200,000 P1,800,000 Warehouse…
Q: Determine the Depreciation Expense for the calendar year 2019 on the following non - current assets…
A: Introduction:- Depreciation is non cash expenditure. Depreciation charged on fixed asset over a…
Q: Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated…
A: TANGIBLE ASSETS Tangible are shown under the Non Current Assets in the Asset section of the…
Q: The following information relates to Absolute Company for the year 2020: Determine the accounts and…
A: Investment property is initially measured at cost, including transaction costs. Such cost should not…
Q: The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances…
A: calculation of depreciation are as follows
Q: The intangible assets and goodwill reported by Sunland Corporation at December 31, 2020, follow:…
A: Intangible Assets It is important for the business entity to record the intangible assets and its…
Q: They Company owns land and building classified as investment property . The land and building is…
A: They Company owns land and building classified as investment property . The land and building is…
Q: of January 1, 2020 its carrying amount of the assets and liabilities of the plant are as follows:…
A: Disposal group refers to a set of assets and liabilities that are planned to be disposed of in some…
Q: The T-accounts for Equipment and the related Accumulated Depreciation-Equipment for Oriole Company…
A: Cash flow from investing activity includes transactions like the purchase and sale of long-term…
Q: Concord Corp's statement of financial position at the end of 2022 included the following items:…
A: An alternative name for the balance sheet is the statement of financial position. As such, it offers…
Q: Exercise 8-21 (Algorithmic) (LO. 2) Lopez acquired and placed in service a building on June 1, 2018,…
A: Modified Accelerated Cost Recovery Syatem or the MACRS is a method of applying depreciation expense…
Q: quipment (note 3). R3 000 000 Motor vehicles (note 4).…
A: 1. Land (at cost) = 1,000,000 Revaluation of land = 500,000 2. Factory Building = 2,400,000…
Q: Service Revenue Salaries and Wages Expense Depreciation Expense Rent Expense Total 3,700 1,000 2,000…
A: The financial statements are prepared using the adjusted trial balance of the business. The income…
Q: Clinton Company has provided information on Intangible assets as folows: 1. A patent was purchased…
A: Intangible assets are the non-current assets that cannot be be touched. Some of the examples are…
Me Company owns land and building being used for its operations. Data relating to the land and building at January 1, 2021 follows:
Land Building
Cost ----------------------------- P 10,000,000 P 20,000,000
Fair Value ------------------------ 14,000,000 9,000,000
On this date the company decided to vacate the land and building and reclassify the assets to investment property. The company uses the fair value model for all its other investment property.
What amount of fair value gain should the company report in profit or loss resulting from reclassifying its land and building to investment property?
Step by step
Solved in 3 steps
- Investment PropertyDEF Company owns land and building being used for its operations and administrative functions. The land and building are carried in its books using the cost model and have the following data at January 1,2023.Land:Cost - P10,000,000Fair value - 14,000,000Building:Cost -P20,000,000Accumulated depreciation -13,500,000Fair value - 9,000,000On this date, the company vacated the old building and occupied a newly constructed one located in the commercial area of the Central Business District. The old building is then reclassified as investment property using the fair value model. The company uses the fair value model in all of its other investment property.What is the amount of fair value gain reported in profit/loss resulting from the reclassification from owner occupied to investments property due to change in use of the property? a. P0 b. P2,500,000 c. P4,000,000 d. P6,500,000answer pleaseThe balance sheet of Alpha Ltd on 31/12/21 is the following ASSETS Plot of land Building Depreciation Vehicle Depreciation. Furniture Depreciation Participations Total fixed assets. Goods Goods in pledge Customers Downpayment to suppliers Prepaid expenses Available Funds Circulating Assets Total assets 31/12/2021 40.000 200.000 -40.000 80.000 -75.000 95.000 -72.000 85.000 313.000 60.000 20.000 30.000 20.000 20.000 107.000 257.000 570.000 31/12/2022 Liabilities Equity (stock price 3€) Statutory Reserves Premium Reserve New result Total Foreign Capitals Long term Loan Bills payable Suppliers Loan with pledged goods Customers' downpayments Expenses payables Prepaid revenues Total Predictions Total liabilities 31/12/2021 180.000 60.000 20.000 -30.000 230.000 120.000 40.000 50.000 14.000 20.000 30.000 20.000 294.000 46.000 570.000 During the use of 2022, the following transactions took place. Sale of goods with value EUR 80,000 and cost EUR 35,000, 80% of them paid by cash and the rest with…
- Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets April 1 May 1 June 1 Tig as platit assets. July 1 Dec. 31 $29,770,000 During 2023, the following selected cash transactions occurred. 12,500,000 47,890,000 4,870,000 $4,360,000 17,270,000 43,020,000 $64,650,000 Purchased land for $2,030,000. Sold equipment that cost $1,110,000 when purchased on January 1, 2019. The equipment was sold for $666,000. Sold land purchased on June 1, 2013 for $1,490,000. The land cost $391,000. Purchased equipment for $2,580,000. Retired equipment that cost $489,000 when purchased on December 31, 2013.The property, plant, and equipment section of the Jasper Company's December 31, 2023, balance sheet contained the following: Property, plant, and equipment: Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Total property, plant, and equipment Machine 101 102 103 Cost $ 48,400 79,000 20,000 Date Acquired 1/1/2021 6/30/2022 9/1/2023 $ 780,000 (150,000) 147,400 Residual Value $ 6,000 7,000 2,000 ? The land and building were purchased at the beginning of 2019. Straight-line depreciation is used and a residual value of $30,000 for the building is anticipated. The equipment is comprised of the following three machines: $ 110,000 Life (in Years) 8 9 8 630,000 ? ? The straight-line method is used to determine depreciation on the equipment. On March 31, 2024, Machine 102 was sold for $54,000. Early in 2024, the useful life of machine 101 was revised to five years in total, and the residual value was revised to zero. Required: 1. Calculate the accumulated…Hiii please help me answer all of the questions. Thanks
- They Company owns land and building classified as investment property . The land and building is being leased out under operating leases. The company uses cost model for its other investment property. Data relating to the land and building follows: Cost FV Dec. 31, 2020 FV Dec. 31, 2021 FV Dec. 31, 2021Land -------- P 10,000,000 -- P14,000,000 -------P15,500,000 ------- P 17,000,000Building ----- 20,000,000 --- 9,000,000 -------- 9,500,000 ------- 10,000,000 How much fair value gain should They company report in profit or loss for year 2021?note: uses cost modelBased on the data provided, what is the debit to accumulated depreciation recorded in 2023? * The following items were listed at cost by Cake Company and are depreciated according to the straight-line method: Land Building Machinery & Equipment Total Accumulated Depreciation Net Book Value 12/31/2022 P 2,000,000.00 10,560,000.00 5,560,000.00 P 18,120,000.00 3,200,000.00 P 14,920,000.00 12/31/2023 P 2,000,000.00 10,560,000.00 5.200.000.00 P 17,760,000.00 3,200,000.00 P 14,560,000.00 Cake depreciation expense for 2023 and 2022 were P 440,000 and P 400,000, respectively. Based on the data provided, what is the debit to accumulated depreciation recorded in 2023?Do not give answer in image
- rrAssume that ACW Corporation has 2023 taxable income of $1,820,000 for purposes of computing the §179 expense. The company acquired the following assets during 2023 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5.) Placed in Service 12-September 10-February Delivery truck 21-August Qualified real property (MACRS, 15 year, 02-April 150% DB) Total Asset Machinery Computer equipment a. What is the maximum amount of $179 expense ACW may deduct for 2023? b. What is the maximum total depreciation that ACW may deduct in 2023 on the assets it placed in service in 2023? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. Maximum §179 expense for 2023 b. Maximum total deductible depreciation for 2023 Basis $ 502,000 102,000 125,000 1,412,000 $ 2,141,000 $ $ 1,160,000 1,304,408 XYou Company owns land and building classified as investment property . The land and building is being leased out under operating leases. The company uses the fair value model for all its other investment property. Data relating to the land and building follows: Cost FV Dec. 31, 2020 FV Dec. 31, 2021Land -------- P 10,000,000 ----- P14,000,000 -------P15,500,000Building ----- 20,000,000 ------ 9,000,000 -------- 8,500,000 On December 31, 2021, the company decided to use the land and building for its operations. At what amount should the land and building be recorded on December 31, 2021?