Trading acquired a property intended for future construction of a new building. The following costs were incurred: Acquisition cost of property 10,000,000 Demolition cost of old building 250,000 Transfer of title fees, legal fees 85,000 Surveying fees 30,000 Scrap metals from demolition proceeds 15,000 Grading and leveling of land 20,000 Annual property tax for 2022 paid on Nov. 5 15,000 As of
Q: Required A Required B1 Required B2 Required 83 Required C Because the calculator division is…
A: The Break-even point is the point where the company incurs no profit and no loss. In other words,…
Q: A VEHICLE IS PURCHASED FOR 30,000 AND SOLD ON 03/1/X+2: REQUESTED: a) Calculate the VNC of the…
A: Valeur nette comptable = net book value Date of purchase of vehicle = 1st july, X Cost of purchase…
Q: [The following information applies to the questions displayed below.] O'Brien Company manufactures…
A: An income statement shows a company's revenues, expenses and profitability over a period of time. It…
Q: Autumn Designs & Decorators issued a 120-day, 6% note for $30,000, dated April 13 to Zebra Furniture…
A: Notes receivable is an asset which is a kind of promise from a another party that it will receive…
Q: Common Stock, Par Value $2.00; Authorized 100,000 shs, Issued and Outstanding 50,000 shares =…
A: The stock split is a process in which the company breaks down its share into the number of shares.…
Q: Mingyu, Jun and Wonwoo each engaged in the extraction of oil, agreed to acquire and jointly operate…
A: Operating expense: Operating expenses are those expenses that an organization incurs for its normal…
Q: Sales Cost of goods sold Gross profit LAKER COMPANY For Month Ended January 31 Specific…
A: Inventory Valuation Methods - Inventory can be valued using various methods - FIFO Method - Under…
Q: Fixed administrative expenses for this year remained unchanged at $970,000. Required: 1. Using sales…
A: Introduction:- Showing the allocation of the fixed administrative expenses among the three…
Q: In 2022, Miranda records net earnings from self- employment of $158,500. She has no other gross…
A: Self-employment income is money made by someone who works for themselves. This includes earnings…
Q: What are the potential indicators of earnings quality?
A: Some potential indicators of earnings quality are: 1. Unusual or unexpected items included in…
Q: Suds & Cuts is a local pet grooming shop owned by Collin Bark. Collin has prepared the following…
A: Price variance is the actual unit cost of an item less its standard cost, multiplied by the quantity…
Q: QS 5-13 Shrinkage LO4 Beamer Company's unadjusted ledger on July 31, the end of the fiscal year,…
A: Perpetual Inventory system is an inventory system in which the inventory details are updated on a…
Q: Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three…
A: CONTRIBUTION MARGIN INCOME STATEMENT A contribution margin income statement is an income statement…
Q: The final amounts were in for Bramble Corp's fixed-MOH costs. The total fixed-MOH costs consisted of…
A: Total Fixed Overhead = Insurance + Supervisor's Salary + Factory Related Depreciation + Property…
Q: During the current year, Thrasher (a calendar year, accrual basis S corporation) records the…
A: Separately Stated Items for S Corporation On Schedule K-1 of the form, the S company must also…
Q: BE9.4 (LO 2), AP Gordon Chemicals Company acquires a delivery truck at a cost of $31,000 on January…
A: Depreciation is considered as expense and it is required to be deducted from the revenues in the…
Q: Required: Prepare a Statement of Cash flows from the relevant information provided
A: In the given question it has been asked to prepare cash flow statement of the classic collectors for…
Q: TockTick Company is contemplating increasing salarie: 10% for all salaried employees. No other costs…
A: Break-even point is the level of activity at which there is no profit or loss from the sale of…
Q: Harrison Forklift's pension expense includes a service cost of $23 million. Harrison began the year…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Chester Corp. purchases and develops land to sell in its normal business operations. Its operating…
A: Inventory - Inventory is an assets that will be sold to any customer for a profit. Inventory will be…
Q: The following transactions and adjusting entries were completed by Legacy Furniture Co. during a…
A: Journal entries are recorded on the day to day basis for preparing a proper record of business…
Q: hello this calculation doesn't work for the 2021 version of this same question
A: Tax liability refers to the actual amount due to the revenue collection authority by the income…
Q: Note: You may select more than one answer. Single click the box with the question mark to pro-…
A: The question deals with under absorption and over absorption of the overheads. Over absorption…
Q: The Parent consolidated group reports the following results for the tax year. Entity Income or Loss…
A: a. Let's assume the marginal tax rate is 35% Consolidated taxable income = $37,000 - $3,700 +…
Q: You are an employee of University Consultants, Limited, and have been given the following…
A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…
Q: good comparables
A: Comparing two alternatives is always profitable for any company. It helps to choose the best one and…
Q: How much was Coronado's sales price variance this year? How much was its comprehensive sales…
A: Sale variance is the amount of difference that exists between the budgeted amount of sales and the…
Q: The shareholders equity section of Batangas Corporation Statement of Financial Position at the end…
A: Preference shares are one of the type of shares. These are issued when the company want to raise…
Q: Explain the accounting treatment of intra-group trading and inter-company balances when preparing…
A: Intra-group trading is when two companies that are part of the same group of companies trade with…
Q: Journal Entries
A: Journal entries are the building blocks of financial statements. So, they must be correctly recorded…
Q: A and B formed the equal AB Partnership on January 1 of the current year. A contributed $100,000 of…
A: The primary distinction is that realised gain is actualized, but recognised gain is not. The…
Q: osh Ltd sold inventory to Edie Ltd for $: during the previou
A: Josh Ltd is the subsidiary [wholly owned] of Edie Ltd . So Edie Ltd will prepare…
Q: Fill in the blanks in the following separate income statements a through e. Sales Cost of goods sold…
A: Income Statement - Income Statement includes income earned and Expense incurred during the financial…
Q: Instant Image Inc. manufactures color laser printers. Model J20 presently sells for $455 and has a…
A: Introduction:- Target costing is one of the method to estimate cost of product. It is the maximum…
Q: Morrison Company had the equivalent units schedule and cost information for its Sewing Department…
A: Work in progress is considered as one of the components of the inventory. It refers to those goods…
Q: Allocate the joint cost to the four grades of peaches by finding the average joint cost per pound…
A: Joint cost is the cost that is used to produce one or more products from a same resources. Different…
Q: 1. After all of the account balances have been extended to the Balance Sheet columns of the…
A: Balance sheet: It is the statement which shows the company's assets and liabilities and equity at a…
Q: Following is selected financial information from General Mills, Inc., for its fiscal year ended May…
A: An income statement is a financial statement that shows a company's income and expenses. It also…
Q: What is the total amount of legal capital?
A: Legal capital of the company is that capital which is legally not allowed to leave the company or…
Q: tone: a. The separation of current debt from long-term debt is done on the date of the balance sheet…
A: The question deals with preparation of financial statements and related concepts.
Q: BE10.8-Using Excel to Calculate Direct Labor Variances PROBLEM Rob, the production manager, was…
A: DIRECT LABOUR VARIANCE Direct labour cost variance is the difference between the standard cost…
Q: Required information [The following information applies to the questions displayed below.] BMX…
A: Journal entry is the process of documenting commercial transactions for the first time in the books…
Q: tax
A: Filing correct tax return is essential. Any errors and mistakes can invites fines and penalties. So,…
Q: Darla Sevy purchased merchandise from a supplier and failed to pay the invoice amount ($310) by the…
A: The past due balance method is one way to calculate interest on a loan. Under the past due balance…
Q: a. Should labor variances be based on the planned volume of 8,700 dolls or the actual volume of…
A: Introduction:- Standard costs are estimates of the actual costs in a company’s production process…
Q: what is the difference between feint and gambit strategies?
A: A feint is a fake attack or maneuver designed to deceive an opponent. A gambit is a chess opening in…
Q: Required (kindly explain): 1. Why is it necessary to examine the lapsing schedule for additions and…
A: Why is it necessary to examine the lapsing schedule for additions and disposals of property, plant…
Q: Required: 1. Compute the plantwide overhead rate using direct labor hours as the allocation base. 2.…
A: Solution:- 1)Computation of the plantwide overhead rate using direct labor hours as the allocation…
Q: On December 31. 2020, Paulson company issues a 4-year bond with a par value of $100,000, a contract…
A: Bond issuance is an act in which bond securities are provided by the company in return for cash or…
Q: new equipment and the avoidable cost per unit to produce the bike frames using the old equipment.…
A: Avoidable and unavoidable are the two types of cost. Avoidable cost is the one which can avoidable…
On June 21, 2021, YY Trading acquired a property intended for future construction of a new building. The following costs were incurred: | |
Acquisition cost of property | 10,000,000 |
Demolition cost of old building | 250,000 |
Transfer of title fees, legal fees | 85,000 |
Surveying fees | 30,000 |
Scrap metals from demolition proceeds | 15,000 |
Grading and leveling of land | 20,000 |
Annual property tax for 2022 paid on Nov. 5 | 15,000 |
As of year-end, the above property was valued at P10,385,000. At what amount was the company's income overstated during the year? |
Group of answer choices
15,000
30,000
0
Cannot be determined.
Step by step
Solved in 2 steps
- On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a straight-line basis over a useful life of 10 years and used a residual value of $12,000. Chapmans depreciation expense for 2019 was $11,000. What was the original cost of the building? a. $98,000 b. $110,000 c. $122,000 d. $134,000
- Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used for deliveries, has the following characteristics: Estimated life: 5 years Estimated residual value: 3,000 Depreciation method for financial statements: straight-line method Depreciation for income tax purposes: MACRS (3-year life) From 2019 through 2023, each year, Hunter had sales of 100,000, cost of goods sold of 60,000, and operating expenses (excluding depreciation) of 15,000. The truck was disposed of on December 31, 2023, for 2,000. Required: 1. Prepare an income statement for financial reporting through pretax accounting income for each of the 5 years, 2019 through 2023. 2. Prepare, instead, an income statement for income tax purposes through taxable income for each of the 5 years, 2019 through 2023. 3. Compare the total income for all 5 years under Requirements 1 and 2.Comprehensive: Acquisition, Subsequent Expenditures, and Depreciation On January 2, 2019, Lapar Corporation purchased a machine for 50,000. Lapar paid shipping expenses of 500, as well as installation costs of 1,200. The company estimated that the machine would have a useful life of 10 years and a residual value of 3,000. On January 1, 2020, Lapar made additions costing 3,600 to the machine in order to comply with pollution-control ordinances. These additions neither prolonged the life of the machine nor increased the residual value. Required: 1. If Lapar records depreciation expense under the straight-line method, how much is the depreciation expense for 2020? 2. Assume Lapar determines the machine has three significant components as shown below. If Lapar uses IFRS, what is the amount of depreciation expense that would be recorded?Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
- The following intangible assets were purchased by Hanna Unlimited: A. A patent with a remaining legal life of twelve years is bought, and Hanna expects to be able to use it for six years. It is purchased at a cost of $48,000. B. A copyright with a remaining life of thirty years is purchased, and Hanna expects to be able to use it for ten years. It is purchased for $70,000. Determine the annual amortization amount for each intangible asset.Company H started its operations in 2021 and made the following asset purchases: asset purchase date COST car 10/31/2021 $ 24,000 landscaping 8/25/2021 $ 2,200 office furniture 2/1/2021 $ 2,900 residential building 5/19/2021 $ 245,000 required: Determine the MACRS depreciation deductions for 2021 *and* 2022 for each of these assets.On March 1, 2024, Beldon Corporation purchased land as a factory site for $72,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2024. Costs incurred during this period are listed below: Demolition of old building Architect's fees (for new building) Legal fees for title investigation of land Property taxes on land (for period beginning March 1, 2024) Construction costs Interest on construction loan $ 5,000 11,000 8,000 4,200 620,000 6,000 Salvaged materials resulting from the demolition of the old building were sold for $3,200. Required: Determine the amounts that Beldon should capitalize as the cost of the land and the new building. Complete this question by entering your answers in the tabs below. Cost of Land Cost of New Building Determine the amounts that Beldon should capitalize as the cost of the land. Note: Amounts to be deducted should be indicated with a minus sign. Capitalized cost of land: Total…
- The following costs were incurred by ABCDEFGH, Inc.. during 2020: July 1 Organization fees P120,000 July 2 Land site and old building 1,890,000 July 3 Option payments 250,000 July 20 Broker’s fees on property acquired 110,400 July 30 Cost of remodeling the building 60,000 August 30 Salaries of executives 360,000 December 21 Real property taxes 240,000 Additional information: The building acquired had a fair value of P450,000 while the land was currently appraised at P1,800,000 P50,000 of the option money paid were for properties not acquired. The executives had no participation on the remodeling of the building The property taxes were for the 2020 calendar year. How much is the cost of land? Group of answer choices 1,512,000 1,856,320 2,288,000 1,992,320The following costs were incurred by ABCDEFGH, Inc.. during 2020: July 1 Organization fees P120,000 July 2 Land site and old building 1,890,000 July 3 Option payments 250,000 July 20 Broker’s fees on property acquired 110,400 July 30Cost of remodeling the building 60,000 August 30 Salaries of executives 360,000 December 21 Real property taxes 240,000 Additional information: The building acquired had a fair value of P450,000 while the land was currently appraised at P1,800,000 P50,000 of the option money paid were for properties not acquired. The executives had no participation on the remodeling of the building The property taxes were for the 2020 calendar year. How much is the cost of land? a. 1,856,320 b. 2,288,000 c. 1,992,320 d. 1,512,000On January 1, 2021, EFG Company acquired a building for P1,200,000. Professional fees for legal services and property transfer taxes incurred on the acquisition amounted to P50,000. Start-up costs incurred amounted to P20,000. Operating losses incurred before the planned level of occupancy of the building is achieved amounted to P120,000. Materials labor and overhead incurred for repairs and renovation of the property before it was put to leasable condition amounted to P200,000. Abnormal amounts of wasted material, labor and other resources incurred in developing the property amounted to P60,000. The renovation and repairs were completed on March 31, 2021. The building has an estimated remaining useful life of 10 years with no residual value. EFG Company uses cost model and the straight-line method of depreciation for its investment property. The building has a fair value of P1,400,000 on December 31 ,2021 Required: How much is amount of investment property recognized on…