ADVANCED FIN. ACCT.(LL)-W/CONNECT
12th Edition
ISBN: 9781264582129
Author: Christensen
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 7, Problem 7.1.3E
To determine
Depreciation is referred as the fall in the value of fixed assets such as plant, equipment, furniture, etc.
: The percentage which will decrease depreciation expense on the equipment.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Star Company expects to sell Division S next year. Division S meets the criteria to be a component unit of Star Company. At the end of this year, Star Company estimates the fair value of Division S at $320,000, and the net book value of Division S is $280,000. Based on the information, what is Star Company's pretax gain (loss) on the held-for-sale component?
a. $320,000 gain
b. $40,000 gain
c. $40,000 loss
d. $320,000 loss
Company X transfers an asset that originally cost of P10,000 to its wholly
owned subsidiary Company Y in 20X1. The transfer price was P13,000. Both
companies charge straight-line depreciation at 10 per cent per annum. A
full year's charge is made in the year of acquisition and none in the year of
disposal. Company X had owned the asset for five years prior to the period
in which the asset was transferred. Ignoring the effects of deferred tax,
what is the net adjustment required to group profit in 20X1? *
Your answer
Pea Company purchased 70 percent of Split Company's stock approximately 20 years ago. On December 31, 20X8, Pea purchased a
building from Split for $300,000. Split had purchased the building on January 1, 20X1, at a cost of $400,000 and used straight-line
depreciation on an expected life of 20 years. The asset's total estimated economic life is unchanged as a result of the intercompany
sale.
Required:
a. What amount of depreciation expense on the building will Pea report for 20X9?
Answer is complete but not entirely correct.
Annual depreciation expense reported by Pea S 33,333
d. What amount of income will be assigned to the noncontrolling interest in the consolidated income statement for 20X9 if Split
reports net income of $ 40,000 for 20X9?
Income assigned to noncontrolling interest
e. Split reports assets with a book value of $ 350,000 and liabilities of $ 150,000 at January 1, 20X9, and reports net income of $
40,000 and dividends of $ 15,000 for 20X9. What amount will be assigned…
Chapter 7 Solutions
ADVANCED FIN. ACCT.(LL)-W/CONNECT
Ch. 7 - Prob. 7.1QCh. 7 - Prob. 7.2QCh. 7 - Prob. 7.3QCh. 7 - Prob. 7.4QCh. 7 - Prob. 7.5QCh. 7 - Prob. 7.6QCh. 7 - Prob. 7.7QCh. 7 - Prob. 7.8QCh. 7 - Prob. 7.9QCh. 7 - Prob. 7.10Q
Ch. 7 - Prob. 7.11QCh. 7 - Prob. 7.12QCh. 7 - Prob. 7.13QCh. 7 - Prob. 7.14QCh. 7 - Prob. 7.15QCh. 7 - Prob. 7.16QCh. 7 - Prob. 7.17QCh. 7 - Prob. 7.18AQCh. 7 - Prob. 7.1CCh. 7 - Prob. 7.2CCh. 7 - Prob. 7.3CCh. 7 - Prob. 7.4CCh. 7 - Prob. 7.5CCh. 7 - Prob. 7.1.1ECh. 7 - Prob. 7.1.2ECh. 7 - Prob. 7.1.3ECh. 7 - Prob. 7.1.4ECh. 7 - Prob. 7.1.5ECh. 7 - Prob. 7.2.1ECh. 7 - Prob. 7.2.2ECh. 7 - Prob. 7.2.3ECh. 7 - Prob. 7.2.4ECh. 7 - Prob. 7.2.5ECh. 7 - Prob. 7.2.6ECh. 7 - Prob. 7.3ECh. 7 - Prob. 7.4ECh. 7 - Prob. 7.5ECh. 7 - Prob. 7.6ECh. 7 - Prob. 7.7ECh. 7 - Transfer of Depreciable Asset at Year-End Pitcher...Ch. 7 - Prob. 7.9ECh. 7 - Sale of Equipment to Subsidiary in Current Period...Ch. 7 - Prob. 7.11ECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.15ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.17ECh. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.20ECh. 7 - Prob. 7.21ECh. 7 - Prob. 7.22ECh. 7 - Prob. 7.23AECh. 7 - Prob. 7.24PCh. 7 - Prob. 7.25PCh. 7 - Prob. 7.26PCh. 7 - Prob. 7.27PCh. 7 - Prob. 7.28.1PCh. 7 - Prob. 7.28.2PCh. 7 - Prob. 7.28.3PCh. 7 - Prob. 7.28.4PCh. 7 - Prob. 7.29PCh. 7 - Prob. 7.30PCh. 7 - Prob. 7.31PCh. 7 - Prob. 7.32PCh. 7 - Prob. 7.33PCh. 7 - Prob. 7.34PCh. 7 - Prob. 7.35PCh. 7 - Prob. 7.37PCh. 7 - Prob. 7.38PCh. 7 - Prob. 7.41AP
Knowledge Booster
Similar questions
- [The following information applies to the questions displayed below.) Metro Corporation traded Building A for Building B. Metro originally purchased Building A for $50,000, and Building A's adjusted basis was $25,000 at the time of the exchange. What is Metro's realized gain or loss, recognized gain or loss, and adjusted basis in Building B in each of the following alternative scenarios? Note: Loss amounts should be indicated by a minus sign. Input all other amounts as positive values. Leave no answers blank. Enter zero is applicable. d. The fair market value of Building A is $45,000, and Metro trades Building A for Building B valued at $40,000 and $5,000 cash. Building A and Building B are like kind property. Description (1) Amount realized from Building B (2) Amount realized from boot (cash). (3) Total amount realized (4) Adjusted basis (5) Gain realized (6) Gain recognized (7) Deferred gain Adjusted basis in Building Br Amount S $ $ 40,000 5,000 45.000arrow_forwardMetro Corporation traded Building A for Building B. Metro originally purchased Building A for $50,000, and Building A's adjusted basis was $25,000 at the time of the exchange. What is Metro's realized gain or loss, recognized gain or loss, and adjusted basis in Building B in each of the following alternative scenarios? (Loss amounts should be indicated by a minus sign. Input all other amounts as positive values. Leave no answer blank. Enter zero is applicable.) b. The fair market value of Building A and of Building B is $40,000. The exchange qualifies as a like-kind exchange. Description Amount (1) Amount realized from Building B (2) Amount realized from boot (cash) (3) Total amount realized (4) Adjusted basis (7) Deferred gain Adjusted basis in Building Barrow_forwardMetro Corporation traded Building A for Building B. Metro originally purchased Building A for $50,000, and Building A's adjusted basis was $25,000 at the time of the exchange. What is Metro's realized gain or loss, recognized gain or loss, and adjusted basis in Building B in each of the following alternative scenarios? (Loss amounts should be indicated by a minus sign. Input all other amounts as positive values. Leave no answer blank. Enter zero is applicable.) a. The fair market value of Building A and of Building B is $40,000 at the time of the exchange. The exchange does not qualify as a like-kind exchange. Description Amount Adjusted basis in Land Barrow_forward
- Metro Corporation traded Building A for Building B. Metro originally purchased Building A for $50,000, and Building A's adjusted basis was $25,000 at the time of the exchange. What is Metro's realized gain or loss, recognized gain or loss, and adjusted basis in Building B in each of the following alternative scenarios? (Loss amounts should be indicated by a minus sign. Input all other amounts as positive values. Leave no answer blank. Enter zero is applicable.) d. The fair market value of Building A is $45,000, and Metro trades Building A for Building B valued at $40,000 and $5,000 cash. Building A and Building B are like-kind property. Description Amount (1) Amount realized from Building B (2) Amount realized from boot (cash) (3) Total amount realized $ (4) Adjusted basis (7) Deferred gain Adjusted basis in Building %24arrow_forwardMetro Corporation traded Building A for Building B. Metro originally purchased Building A for $50,000, and Building A's adjusted basis was $25,000 at the time of the exchange. What is Metro's realized gain or loss, recognized gain or loss, and adjusted basis in Building B in each of the following alternative scenarios? (Loss amounts should be indicated by a minus sign. Input all other amounts as positive values. Leave no answer blank. Enter zero is applicable.) c. The fair market value of Building A is $35,000, and Building B is valued at $40,000. Metro exchanges Building A and $5,000 cash for Building B. Building A and Building B are like-kind property. Description Amount (1) Amount realized from Building B (2) Amount realized from boot (cash) (3) Total amount realized $ (4) Adjusted basis (7) Deferred gain Adjusted basis in Building Barrow_forwardThank you so much!arrow_forward
- Pea Company purchased 70 percent of Split Company's stock approximately 20 years ago. On December 31, 20X8, Pea purchased a building from Split for $372,000. Split had purchased the building on January 1, 20X1, at a cost of $472,000 and used straight-line depreciation on an expected life of 20 years. The asset's total estimated economic life is unchanged as a result of the intercompany sale. Required a. What amount of depreciation expense on the building will Pea report for 20X9? Annual depreciation expense reported by Pea Annual depreciation expense reported by Split b. What amount of depreciation expense would Split have reported for 20X9 if it had continued to own the building? No A Pea Company purchased 70 percent of Split Company's stock approximately 20 years ago. On December 31, 20X8, Pea purchased a building from Split for $372,000. Split had purchased the building on January 1, 20X1, at a cost of $472,000 and used straight-line depreciation on an expected life of 20 years. The…arrow_forwardCassidy Inc. acquired land, buildings, and equipment from a bankrupt competitor at a lump-sum price of $216,000. An appraisal shows the following fair values: Land: $60,000 Buildings: $132,000 Equipment: $48,000 How should Cassidy allocate the purchase price to the land, buildings, and equipment, respectively? Question 12 options: $72,000; $72,000; $72,000 $66,667; $120,000; $53,333 $60,000; $132,000; $48,000 $54,000; $118,800; $43,200arrow_forwardPea Company purchased 70 percent of Split Company’s stock approximately 20 years ago. On December 31, 20X8, Pea purchased a building from Split for $360,000. Split had purchased the building on January 1, 20X1, at a cost of $460,000 and used straight-line depreciation on an expected life of 20 years. The asset’s total estimated economic life is unchanged as a result of the intercompany sale.a) What amount of income will be assigned to the noncontrolling interest in the consolidated income statement for 20X9 if Split reports net income of $40,000 for 20X9?b)Split reports assets with a book value of $310,000 and liabilities of $130,000 at January 1, 20X9, and reports net income of $40,000 and dividends of $17,000 for 20X9. What amount will be assigned to the noncontrolling interest in the consolidated balance sheet at December 31, 20X9, assuming the fair value of the noncontrolling interest at the date of acquisition was equal to 30 percent of Split Company’s book value?arrow_forward
- Kalibo Company purchased a residential unit for 3,000,000 and transferred ownership to its supervisory employee. The property has a zonal value of 3,500,000. Compute the monetary value * 3,000,000 3,500,000 O 1,750,000 175,000 Celebes, Inc. owns a residential property it acquired for 2,000,000. It transferred ownership thereto to its managerial employee for 1,200,000 when its fair value was 3,000,000. What is the monetary value of the benefit? O 3,000,000 2,000,000 1,800,000 800,000arrow_forwardUse the following information for question 6 and 7: Marksman acquired 100 percent of Tribal Transit for P275,000. At the date of acquisition, Fast Transit had the following book and market values: Book Value Market Value Cash and Receivables P30,000 P30.000 Inventory 100,000 120,000 Plant Assets (net) 210,000 300,000 Current Liabilities (45,000) (45,000) Long-term Debt (115,000) (115,000) Common Stock (10,000) Retained Earnings (170,000) 6. What is the amount of the "Investment in Tribal Transit" account on Marksman's financial records at the acquisition date? 7. What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination?arrow_forwardPea Company purchased 70 percent of Split Company’s stock approximately 20 years ago. On December 31, 20X8, Pea purchased a building from Split for $300,000. Split had purchased the building on January 1, 20X1, at a cost of $400,000 and used straight-line depreciation on an expected life of 20 years. The asset’s total estimated economic life is unchanged as a result of the intercompany sale. Record the entry to eliminate the gain on the equipment and to correct the asset's basis. Record the entry to adjust Accumulated Depreciation.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you