Which method will produce the highest charge to income in year 4? Which method will produce the highest book value for the asset at the end of year 3? If the asset is sold at the end of year 3, which method would yield the highest gain (or lowest loss) on disposal of the asset?
Q: a. What is the amount of the MACRS-GDS depreciation taken in the 3rd year? Depreciation = $ b. What…
A: The modified accelerated cost recovery system (MACRS) is a depreciation system used for tax purposes…
Q: In solving for the annual cost of an asset, yearly depreciation is considered an expense. During the…
A: Depreciation is defined as the reduction in the value of fixed asset due to normal wear & tear,…
Q: Mr. Briggs purchased an apartment complex January 10, 2016 for $6,000,000 with 20% of the price…
A: Answer:
Q: A fixed asset with a cost of $31,737 and accumulated depreciation of $28,563.30 is sold for…
A: Carrying value of the asset is the value after deduction of accumulated depreciation from the…
Q: Which of the following is not a requirement for an asset to be depreciable?a. It must have a life…
A: Depreciation: A gradual reduction in the value of any asset or a normal wear and tear of the asset…
Q: Which one of the following states a requirement or characteristic of special use valuation under IRC…
A: An estate to use special use valuation must be a farm or business or trade. Hence A) is false c)…
Q: Maxine Corporation purchased an investment property on January 1, 2017 for a cost of $2,200,000. The…
A: Depreciation expense is related to the drop in the value of an asset periodically because of the…
Q: True or false SL depreciation assumes that an equal share of the total depreciation is not taken…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: In which method depreciation is charged on the book value of asset and book value is decreased each…
A: The depreciation expense is charged on fixed assets as reduction in value with the passage of time.
Q: Using the formulas, determine the depreciation charge for year 2 and the book value at the end of…
A: The term depreciation refers to an accounting method which is used to allocate the cost of asset…
Q: Which of the following statements is true with respect to intangible assets with indefinite lives? O…
A: As per IAS 36 Intangible assets, For Intangible assets with indefinite useful, Intangible assets not…
Q: An asset that costs $34,000 and has accumulated depreciation of $11,800 is sold for $18,700. What…
A: Given: Assets cost =$34000Accumulated depreciation =$11800Sold =$18700
Q: Which of the following statements are TRUE? a. MACRS-GDS uses a half-year convention, whereas…
A: MACRS stands for Modified Accelerated Cost Recovery System. It is a system by which the cost of the…
Q: or loss on disposal of the fixed asset? Select the correct answer. A. $2,251.69 loss
A: Correct answer is a . Explain Calculate the book value of the asset: Book value of the asset…
Q: The sale of a depreciable asset resulting in a gain indicates that the proceeds from the sale were…
A: Depreciable assets are those fixed assets on which depreciation is charged over the years and net…
Q: What are some of the potential problems with using a “going-in” capitalization rate that is…
A: Going-in-capitalization rate: Going-in-cap rate is the cap rate originated on the ratio of the…
Q: A fixed asset with a cost of $28,567 and accumulated depreciation of $25,710.30 is sold for…
A:
Q: Which of the following will maximize net income by minimizing depreciation expense in the first year…
A: In the first year of asset's life, depreciation expense can be minimised by maximising net income by…
Q: Assume that a company buys another business and pays for its goodwill. If the company plans to incur…
A: Goodwill is a intangible asset which is recorded during purchase of a entity by deducting market…
Q: Which of the following transactions and events would result in a deterioration in Net Tangible Asset…
A: Tangible assets are which can be touch felt and can be seen, Whereas intangible assets we cannot…
Q: In depreciation analysis, the method that will yield the highest book value at the end of n years is…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: CALCULATE the amount, if any, of recapture of depreciation, ordinary loss, or capital gain on the…
A: Given Cost = $ 20,000, Asset was sold at the end of year 1 for $ 18,000. depreciation method is…
Q: To calculate the amount of increase to the property, pland and equipment, do I need to minus…
A: Expenditures which increase the operating efficiency of the fixed assets should be capitalised with…
Q: Many companies use an accelerated depreciation method because: A. It is required by the tax code. B.…
A: Depreciation is the allocation of cost of asset over the useful life of the asset.
Q: An asset that was originally purchased for $60,818 is being depreciated straight-line over its…
A: Cost = $ 60818 Depreciated value = 83% Book value at the time of sale = Cost*(1-Depreciated value)…
Q: Match the concept that closely describes a particular depreciation method. Choose the correct answer…
A: Lets understand the basics. Double declining balance method is a accelerated depreciation method…
Q: What are the two major treatments of a superficial loss on a sale and repurchase of identical…
A: The capital gain and loss are realized when the non-registered security is sold in the market at a…
Q: The use of accelerated depreciation for tax purposes and straight-line depreciation for accounting…
A: Solution: The use of accelerated depreciation for tax purposes and straight line depreciation for…
Q: A fixed asset with a cost of $33,769.00 and accumulated depreciation of $30,392.10 is sold for…
A: The gain on disposal of asset is calculated as salvage value minus book value of asset
Q: Which one of the following would correctly describe the net realisable value of a two year old…
A: Net realizable value is the amount that can be recovered on selling an asset, after deducting the…
Q: What is proper time or time period over which to match the cost of an intangible asset with revenues…
A: An intangible asset is an asset which cannot be identified physically, but its value to the…
Q: an item is capitalized why do you think different depreciation methods are allowed? Does the…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The book value of a plant asset is the difference between the Question 20 options: replacement…
A: According to the IFRS - property, plant & equipment, Non-current asset is shown as net of…
Q: Determine the amount of any depreciation recapture (DR), capital gain (CG), or capital loss…
A: The answer is stated below:
Q: Which of the following are subjected to Value Added Tax (VAT)? A Sale by a real estate dealer…
A: Applicability of VAT relating to real estate Type of Property Threshold limit for VAT exemption…
Q: The MACRS depreciation system is used for tax purposes, and the straight-line depreciation method is…
A: Deferred tax liability: Deferred tax liability arises when taxes paid under accounting records are…
Q: A fixed asset with a cost of $31,365.00 and accumulated depreciation of $28,228.50 is sold for…
A: Given cost of asset = $31,365 Accumulated depreciation = $28,228.5 Therefore carrying value = Cost…
Q: of the VLN, acquisition cost would NOT include: A. Purchase price. B. Transportation cost to get the…
A: operating assets are the assets which are used in the day to day activities of the business. the…
Q: 1. $ land for the next year" should be capitalized in the Land How much of the "property taxes on…
A: Solution:- 1)Calculation of the "property taxes on the land for the next year" should be capitalized…
Q: There is impairment loss if the carrying amount of the asset held for sale is P5,000,000 and the…
A: The correct answer is False.
Q: 2. According to PAS 16, items of PPE are initially measured at 1. PAS 16 defines depreciation as…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: An asset which costs $25,000 and has accumulated depreciation of $6,000 is sold for $11,000. What…
A: The value of gain or loss on the sale of the asset is determined by deducting the carrying value of…
Q: In which financial statement this land should be reported and which part specifically? Do we need to…
A: Definition: Assets: These are the resources owned and controlled by business and used to produce…
Q: Which of the following statements is true regarding the use of an accelerated depreciation method?…
A: Depreciation is charged on assets due to decrease in its value with respect to passage of time and…
Q: An assets is classified as a fixed asset when ______________ a. It has life less than one year b. It…
A: Assets are classified into two types 1. Current assets 2. Non current or fixed assets These are…
Q: You acquire a grinder priced al $65,000 by trading in a similar grinder andpaying cash for the…
A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…
Q: On the basis of the data provided at question 6, what is the overall gain during the sale of the…
A: Profit is a sole objective for which any organisation works.Gain is somewhat same or referred to as…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- What amount should be recorded as initial measurement of the right of use asset? **see attached pica. 5,600,000b. 4,088,000c. 3,912,000d. 3,288,000On anuary 1.2023, piant assets cet ere 5190.000 and un Decenber at, 2023. plart assets. et are Sz00.000. Depredation eperise for he yeraS10.000 Ne plant ets wrs soid or ehenget during the year What is the coet af the plant asts acqured dung the year OA 10 OR S000 OG. 100.000 OD 0.0001 Select the best answer for the question. 11. What is the process by which the cost of a fixed asset over its estimated useful life is periodically charged to an expense a O A. Hypothecation B. Accretion C. Liquidation D. Depreciation O Mark for review (Will be highlighted on the review page) > O Hi Fu
- The information below was extracted from the books of Let Your Light Shine Enterprise: Non-current Asset Cost (GH¢) Date of Acquisition Date of Disposal Proceed from Disposal (GH¢) Machine A 30,000 03/01/15 31/08/17 18,000 Machine B 40,000 01/07/15 - - Machine C 60,000 30/09/15 01/07/17 50,000 Machine D 80,000 01/04/16 - - Additional information: a) As per the enterprise’s accounting policy, depreciation charged is pro-rated on the basis of months of use. All acquisitions and disposals are on cash basis; b) Machines A and B are depreciated at a rate of 20% on reducing balance basis while Machines C and D at 10% on straight line basis; and c) Accounts are prepared to 31st December every year. You are required to: I. Show the relevant accounts for machinery for years to 31st December, 2017; II. Show the Income statement and the statement of financial position for each of the…Research and development costs are while of the following? are classified as intangible assets. should be included in the cost of the patent they relate to. must be expensed when incurred under generally accepted accounting principles. are capitalized and then amortized over a period not to exceed 40 years.Which of the following amortization methods is most likely to evenly distribute the cost ofan intangible asset over its useful life?A. Straight-line methodB. Units-of-production methodC. Double-declining balance method
- Which of the following formulas for the capital expenditure on intangibles is correct? Assume the current time (now) is t1 and last year is to, and that 'Intangible assets' is a carrying value net of accumulated amortisation. Select one: a. CapExOnIntangibles(t1) = IntangibleAssets (t1) + IntangibleAssets (t0) + Amortisation ExpenseOnIntanglibles (t1) b. CapExOnIntangibles(t1) = IntangibleAssets (t1) - IntangibleAssets(t0) + Amortisation ExpenseOnIntanglibles(t1) c. CapExOnIntangibles (t1) = IntangibleAssets(t1) - IntangibleAssets(t0) - Amortisation ExpenseOnIntanglibles (t1) d. CapExOnIntangibles(t1) = IntangibleAssets (t1) + AmortisationExpenseOnIntanglibles (t1) e. CapExOnIntangibles (t1) = IntangibleAssets (t1) - Amortisation ExpenseOnIntanglibles (t1)80% ... https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker3D&ta geNOWv2 | Assi. QuickBooks Login eBook Amortization and depletion entries Instructions Chart of Accounts First questions Journal Instructions Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows: a. Timber rights on a tract of land were purchased for $1,600,000 on February 22. The stand of timber is estimated at 5,000,000 board feet. During the current year, 1,100,000 board feet of timber were cut and sold. b. On December 31, the company determined that $3,750,000 of goodwill was impaired. C. Governmental and legal costs of $6,600,000 were incurred on April3 in obtaining a patent with an estimated economic life of 12 years Amortization is to be for three-fourths of a year Required: 1. Determine the amount of the amortization, depietion, or impairment for the current year for each of the foregoing items 2. Journalize the…The acquisition of a new machine with a purchase price of $96,072, transportation costs of $7,638, installation costs of $6,963, and special acquisition fees of $2,105, would be journalized with a debit to the asset account for a.$96,072 b.$112,778 c.$105,140 d.$103,035
- Select the most correct answer: A vehicle, which is classified as property plant and equipment (IAS 16) and measured using the cost model, is to be transferred to the ‘held for sale’ classification. It has a cost of R220 000 and its accumulated depreciation to date of transfer is R44 000. This asset has never before been impaired. On date of transfer: its fair value is R154 000 with estimated costs to sell of R11 000, and its value in use is R198 000. The impairment consequences are as follows: a. The asset is impaired in terms of IAS 36 Impairment of assets but is not impaired in terms of IFRS 5 Non-current assets held for sale and discontinued operations. b. The asset is not impaired in terms of IAS 36 Impairment of assets but is impaired in terms of IFRS 5 Non-current assets held for sale and discontinued operations. c. The asset is impaired in terms of both IAS 36 Impairment of assets and IFRS 5 Non-current assets held for sale and discontinued operations. d. The…The acquisition of a new machine with a purchase price of $80,545, transportation costs of $9,221, installation costs of $6,311, and special acquisition fees of $2,597, would be journalized with a debit to the asset account for Oa. $80,545 Ob. $89,453 Oc. $86,856 Od. $98,674given up. Exchanges Busic steps in recording nonmonetary asset exchanges: Step 1: Record the new aset af fuir value, Step 2. Remove the book yalueof the nonmoctary asset given. Step 3: Record any eash received or paid. Step 4: Record any guin or loss. Knowledge Check 01 If a company exchanges an asset with a book value of $260,000, an original cost of $500,000, and a fair value of $300,000 plus cash of $100,000 for a new asset, what is the gain or loss recognized on the transaction? 9 of 13 Next >SEE MORE QUESTIONS