In 2018 an asset was purchased for $2,000,000. The asset qualified for Initial Allowance. The Initial Allowance (I.A) Rate was 20%. Annual Allowance (A.A) Rate was 10%. The asset was sold in 2020 for $1,000,000. Capital allowance is on the reducing balance basis. The balancing adjustment is: a.A Balancing Charge of $260,000 b.A Balancing Allowance of $134,000 c. ABalancing Allowance of $260,000 d. A Balancing charge of $200,000
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In 2018 an asset was purchased for $2,000,000. The asset qualified for Initial Allowance. The Initial Allowance (I.A) Rate was 20%. Annual Allowance (A.A) Rate was 10%. The asset was sold in 2020 for $1,000,000. Capital allowance is on the reducing balance basis. The balancing adjustment is: a.A Balancing Charge of $260,000 b.A Balancing Allowance of $134,000 c. ABalancing Allowance of $260,000 d. A Balancing charge of $200,000
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- In 2018 an asset was purchased for $2,000,000. The asset qualified for Initial Allowance. The Initial Allowance (I.A) Rate was 20%. Annual Allowance (A.A) Rate was 10%. The asset was sold in 2020 for $1,000,000. Capital allowance is on the reducing balance basis. Calculate the balancing adjustment.In 2018 an asset was purchased for $2,000,000. Initial Allowance (I.A) Rate was 20%. Annual Allowance (A.A) Rate was 10%. The asset was sold in 2020 for $1,000,000. Capital allowance is on the reducing balance basis. The balancing adjustment is: a. $200,000 b. $260,000 c. $740,000 d. $134,000In 2018 an asset was purchased for $2,000,000. Initial Allowance (I.A) Rate was 20%. Annual Allowance (A.A) Rate was 10%. The asset was sold in 2020 for $1,000,000. Capital allowance is on the reducing balance basis. The balancing adjustment is:
- In 2018 an asset was purchased for $8,000,000. It was not eligible for initial allowance. annual allowance rate was 10%. The asset was sold in 2022 for $8,500,000. Capital allowance is on the straight-line basis. The balancing adjustment is: a. $3,700,000 b. $4,500,000 c. $4,000,000 d. $3,200,000Equipment with a cost of R500 000 is purchased and R200 000 is paid immediately on 1 January 2016. The balance will only be paid on 31 December 2016, which exceeds normal credit terms. An after-tax discount rate is 9% per annum. Assume a tax rate of 28%. Calculate the cost of the asset at initial recognition.The Slow company has started the construction of an asset on September 1, 2019and finished it on November 1, 2020. The weighted average expenditure ascalculated at the end of the construction in 2020 was: $725,456. In 2020, thecomp had the following outstanding indirect debts:DebtOne-year loan payable taken out on March 31, 2019Two-year note payable Faken out on June 1, 2020Amount$67,000$120,000Annual rate5%7%Assuming there is no direct debt related to this construction, the interest that will becapitalized on indirect debt in 2020 is (calculate ratios to 2 decimal places):a) $47,980b) $45,130Oc) $7,133d) $5,737
- Acruni Co. had the following loans in place at the beginning of 2019. 1 January 2019 GHC m 10% Bank loan repayable 2020 9.5% Bank loan repayable 2021 8.9% debenture repayable 2024 120 80 100 On 1 January 2019, Acruni Co began construction of a qualifying asset, a piece of machinery for a hydroelectric plant, using existing borrowings. Expenditure drawn down for the construction was GHC30 million on 1 January 2019, and GHC20 million on 1 October 2019. Surplus funds were invested temporarily at a rate of 2%. Required a) Calculate the borrowing costs that can be capitalized for the piece of machinery. b) Compute the cost of the machinery that will be reported in the statement of financial position as at December, 2019 ATES)solve both a and b Acruni Co. had the following loans in place at the beginning of 2019. 1 January 2019 GHC m10% Bank loan repayable 2020 1209.5% Bank loan repayable 2021 808.9% debenture repayable 2024 100On 1 January 2019, Acruni Co began construction of a qualifying asset, a piece of machinery for a hydroelectric plant, using existing borrowings. Expenditure drawndown for the construction was GHc30 million on 1 January 2019, and GHc20million on 1 October 2019. Surplus funds were invested temporarily at a rate of 2%. Requireda) Calculate the borrowing costs that can be capitalized for the piece ofmachinery. b) Compute the cost of the machinery that will be reported in the statementof financial position as at December ,2019On July 1, 2020, Marin Inc. made two sales: 1. It sold excess land in exchange for a four-year, non–interest-bearing promissory note in the face amount of $1,165,880. The land’s carrying value is $640,000. 2. It rendered services in exchange for an eight-year promissory note having a face value of $480,000. Interest at a rate of 2% is payable annually. The customers in the above transactions have credit ratings that require them to borrow money at 11% interest. Marin recently had to pay 7% interest for money it borrowed from British Bank. 3. On July 1, 2020, Marin also agreed to accept an instalment note from one of its customers in partial settlement of accounts receivable that were overdue. The note calls for four equal payments of $21,000, including the principal and interest due, on the anniversary of the note. The implied interest rate on this note is 9%. Required: 1. Prepare the journal entries to record the three notes receivable transactions of Marin…
- For the next 3 questions.. What amount should be recognized as pretax revaluation surplus on January 1, 2019? A. 125,000,000 B. 385,000,000 C. 105,000,000 D. 315,000,000 What amount should be recorded as depreciation for 2019? A. 15,000,000 B. 27,500,000 C. 22,500,000 D. 15,750,000 What amount should be reported as pretax revaluation surplus on December 31, 2019? A. 125,000,000 B. 117,500,000 C. 119,750,000 D. 105,000,0001) A certain property was offered on an instalment basis wherein the buyer needs to pay 15% of the cash price as down payment and remaining balance be paid by a beginning of a quarter payments for a period of 5 years. First quarterly payment amounts to P 175,000 and happens six months after purchased. Quarterly payments increases an amount of P1, 200 every quarter thereof until the last payment with an interest rate of 8% effective. a) What was the cash price of the said property? b) What equivalent equal-end of a monthly payments would the remaining balance be for just a period of four years, assuming the first monthly payment happens after a year of purchased? c) Find the sum of all of the payments.On January 1, 2022, ABC Company buys three hectares of land for exactly P800,000 with the amount to be paid on December 31, 2024. Interest of 3% will be paid each December 31 although a 10 percent annual rate is viewed as reasonable. Use PV factors rounded to TWO decimal places.On December 31, 2022, at what amount should the company report as the liability for this land? On December 31, 2022, what amount of Discount on Notes Payable should be reported by ABC Company on its Statement of Financial Position? Prepare the journal entry on the payment of interest expense on December 31, 2022.