13 the cost of a property is estimated to be 3500000 and the sales price quoted to be 4500000. An 18% downpayment is made by the buyer. The remainder is to be received over a period of 8 years. Furthermore, there is doubt about the buyer's ability to pay. How much profit should be recognized attributable to the downpayment if: 1) the installment method is used and 2) the cost recovery method is used
Q: Use the following Unadjusted Trial Balance for Monroe Entertainment Company for questions 44 - 49:…
A: Solution: Trial balance is the list of all accounts with their balances. Trial balance is prepared…
Q: find the outstanding of pepsi co for year 2019, 2020, 2021?
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: B was an industrial partner. The Articles of Partnership required B that every week he will work for…
A: Partnership: It implies to a contractual agreement between two or more parties who agrees or gives…
Q: Adjusted trial balance Format on the photo attached
A: FALLEN MOON legal services Adjusted Trail Balance on 31, December 20x0 Account no. Account title…
Q: What is the principle under the Corporation Law that allows the court to identify the erring…
A: Corporation means a large company and group of companies authorized to act as a single entity.
Q: Activity IV. Journal Entry Jerome Garcia started a new business and completed these transactions…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: A. FF Co. changed its inventory valuation from the FIFO cost method to the weighted average method…
A: Solution:- Introduction:- As per LIFO, Cost of goods sold is valued at latest price and closing…
Q: ITH THAT ANSWER
A: This question is related to the topic of basics of proof of cash and here there are multiple-choice…
Q: What is the name of the system of accounting for recording transactions, based on recording…
A: Solution: Double entry accounting system is a system of accounting that ensures that every financial…
Q: Choose a major publicly traded corporation, then go to the corporation's site and retrieve the…
A: The company that I have selected is Starbucks Corporation. The company was founded in the year…
Q: How important is a purchases budget and how does it help managers run a company?
A: Purchase Budget: A company's acquisitions budget will outline the total quantity of stock that it…
Q: Expound the following two physical control for cash received by cashiers in a grocery 1) The cash…
A: Since cash is the most liquid of all assets, a business cannot survive and prosper if it does not…
Q: Fox Corporation. has the following information for August: Beginning Work in Process Inventory (70%…
A: When materials are added at the beginning of the process they are considered to be 100% complete as…
Q: Discuss the different types of taxpayers.
A: there are different types of taxpayer in the Philippines it often times causes public confusion…
Q: On January 1, 2021, Byrd and Gates own equally (nfty percent (50W) of the stock of Boudreaux…
A: The answer for the multiple choice question and relevant working are presented hereunder : Byrd and…
Q: How to increase ROA and ROE in a rural bank? Explain thoroughly
A: ROA = NET INCOME /TOTAL ASSETS. NET INCOME. is the net earnings for the period of time that we want…
Q: Calculate Days in Accounts Receivable. Total accounts receivable over 90 days: $18,105.50 A/R :…
A: Days in Accounts receivable is calculated by dividing total Receivables, net of credit by daily…
Q: Problem No. 3 (Ciosing Entries) Same details from Fallen Moon Legal Service Adjusted Trial Balance.…
A: Journal entries refers to the official book of a firm/company which is used to record the day to day…
Q: BBS Corporation is a Resident Foreign Corporation, compute the Taxable Income and the Income Tax…
A: Income tax due is the amount which is due to the taxpayer which have to be paid to the government…
Q: Compute NET Profit margin ratio Income Statement ($M) 2019 Revenue Depreciation Other Operating…
A: In order to determine the Net profit margin ratio, the net income is required to be divided by the…
Q: Which financial statement would indicate whether a business made a net income (net profit) or…
A: Solution: Income statement is the financial statement which reports revenue earned, expenses…
Q: ABC Corporation has recently completed a project to reduce total production costs by 5%. Net income…
A: Part A: Cost of Quality: Cost of quality (COQ) is defined as a methodology that allows an…
Q: The following information is available for a firm:
A: Answer: 1. $85,000 2. $132,750 3. $119,900 4. $217,750 5. $252,650 6. $96,130 Explanation: 1. The…
Q: Suppose a firm's cash inflows and outflows are variable but completely predictable. How are the…
A: 1) Assume that a company's income and expenses are both variable yet predictable. How do the…
Q: - Active Auditor
A: An active auditor is an auditor who issues a list of audit messages related to the data files. The…
Q: dger turo
A: Explanation of Concept Ledger Posting : is the step in the process of preparing the books accounts…
Q: The the chart of accounts for Roth Co. includes the following accounts: Cash, Accounts Receivable,…
A: Solution: Double entry accounting system is system of accounting which ensures that every financial…
Q: True or False: Borrowing and repaying debt principal does not impact net worth. Select one: True…
A: Net worth is the sum of all your assets, including financial and non-financial, less any…
Q: The following information pertains to Havana Corporation's defined benefit penslon plart 2022…
A: Introduction: The process of determining the expenses connected with developing, sustaining, and…
Q: Question 3 The following information was obtained from the financial records of Narrowbeach Ltd for…
A: An income statement refers to a financial statement that portrays the income earned and expenses…
Q: Annual depreciation on equipment at Charmed, Inc.is $2,100. The adjusting entry to record one…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: What is the impairment loss to be allocated to the equipment?
A: An impaired loss is the loss which results to the asset of the company as a result that the market…
Q: 30) If no-par stock is issued without a stated value, then A) the par value is automatically $1 per…
A: There are no par value stock shares issued with no reference of a par value on the front of the firm…
Q: 27) Under the corporate form of business organization, A) stockholders wishing to sell their…
A: Stockholders are holders of shares who are considered the owners of the shares of the company. They…
Q: Problemt No. 1- Fallen Moon Legal Services Below are the details from the books of Fallen Moon Legal…
A: Adjusting entries are passed at the end of an accounting period to record any unrecorded income or…
Q: Bruce Corporation makes four products in a single facility. These products have the following unit…
A:
Q: kindly post the solution to the question thanks
A: Total cost of the product comprises of material cost, direct labor cost, variable as well as fixed…
Q: A corporation purchases 89000 shares of its own $30 par common stock for $47 per share, recording it…
A: Introduction: A share is a percentage of a company's ownership. You own a piece of the issuing firm…
Q: True or False: Borrowing and repaying debt principal does not impact net worth. Select one: O True…
A: Introduction: The net worth of a firm is that the total of its assets minus its liabilities as…
Q: The following information has been extracted from the financial statements of Muggie Pty. Ltd., a…
A: Net profit is the net income of the business after considering all the expenses and all the incomes…
Q: Generally accepted guidelines formulated by FASB for the preparation of financial statements are…
A: Financial statements are prepared to show the summarized view of the economic transactions of the…
Q: what is the amount of owner’s equity (also known in "real-life" as net worth) for this business?
A: Accounting equation refers to an equation which shows that the both the debit side as well as credit…
Q: reate a new company in Microsoft office Accouting
A: STEP.1 OPEN MISCROSOFT OFFICE ACCOUNTING SOFTWARE. STEP2. SELECT START A NEW COMPANY STEP3.A NEW…
Q: On January 1, 2021, ABC Company enters into a 4-year lease of a machinery. Annual rental is P200,000…
A: The lease is a type of financing in which the owner of the asset provides the right to use the asset…
Q: Explain how accounting principles are used to analyze a business’s financial health, What accounting…
A: Introduction: Financial analysis based on accounting standards entails both analysis and…
Q: Assume a company is considering adding a new product. The expected cost and revenue data for this…
A: Contribution margin per unit = Selling price - Variable Cost
Q: The four major financial reports that summarize the effects of economic events (like the results of…
A: Economic events are the financial transactions that are occurring in the regular course of business.…
Q: In 2021, Dan Davis, age 85 and single, received Social Security benefits of $14,000, dividend and…
A: Social Security Benefit: It is the benefit which an individual get at the time or retirement or for…
Q: QUESTION 28 During the year of 2021, Johnson Corporation, an S Corporation has a recognized Built-in…
A:
Q: operating income will increase by
A: Due to increase in sales, only variable expenses would increase. There would be no change in fixed…
13
the cost of a property is estimated to be 3500000 and the sales price quoted to be 4500000. An 18% downpayment is made by the buyer. The remainder is to be received over a period of 8 years. Furthermore, there is doubt about the buyer's ability to pay. How much profit should be recognized attributable to the downpayment if:
1) the installment method is used and
2) the cost recovery method is used
Step by step
Solved in 2 steps
- Tony Industries plan to sell a machine in the current tax year. The cost basis presented is RM500,000 and the accumulated depreciation is RM450,000. The effective income tax rate is 0.30. Determine: the minimum sold price required of the machine to gain on the disposal and (i) (ii) the revised minimum sold price required of the machine to gain on the disposal if the effective income tax rate adjusted to 0.50 while accumulated depreciation increased 10 %.A depreciable asset has a cost of P120,000, estimated useful life of 8 years, and an estimated residual value of P20,000.1. What is the depreciation rate if you are using the straight line method?2. What is the depreciation rate if you are using 150% declining balance method?3. What is the depreciation rate if you are using double declining balance method?Note: For nos. 1 to 3, the rate must be rounded off to two decimal places. Ex: 10.00%, 12.30%, 15.55%4. What is the depreciation rate if you are using the declining balance method?Note: For no. 4, the rate must be rounded off to 6 decimal places. Ex: 10.123456%5. Using SYD method, what is the depreciation expense for the 1st year?6. Using SYD method, what is the carrying amount at the end of the 6th year?7. Using double declining balance method, what is the carrying amount at the end of the 3rd year?A depreciable asset has a cost of P120,000, estimated useful life of 8 years, and an estimated residual value of P20,000.1. What is the depreciation rate if you are using the straight line method?2. What is the depreciation rate if you are using 150% declining balance method?3. What is the depreciation rate if you are using double declining balance method?Note: For nos. 1 to 3, the rate must be rounded off to two decimal places. Ex: 10.00%, 12.30%, 15.55%4. What is the depreciation rate if you are using the declining balance method?Note: For no. 4, the rate must be rounded off to 6 decimal places. Ex: 10.123456%5. Using SYD method, what is the depreciation expense for the 1st year?6. Using SYD method, what is the carrying amount at the end of the 6th year?7. Using double declining balance method, what is the carrying amount at the end of the 3rd year? Subparts 4-5 only
- Southern inc. purchases an asset for 98,000. Thus asset qualifies as a 3 year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1= 33.33% year 2: 44.45% year 3= 14.81% and year 4 = 7.41%. Southern has a tax date of 25%. If the asset is sold at the end of 2 years for 29,000 what is the cash flow disposal ? 17,404 11,129 13,923 21,755 27,194The market value of a presently owned machine in a wind turbine manufacturing plant is $130,000. It has annual operating costs of $64,000 with no salvage value after its remaining life of 3 years. The depreciation for the next 3 years will be $69,960, $49,960, and $35,720. Assume the effective tax rate is 25% and its after-tax MARR is 12%. A PW relation for comparing the defender against a challenger that also has a 3-year life is being developed. Determine the after-tax cash flow value for year 2 only used in the PW relation. The after-tax cash flow value for year 2 only used in the PW relation is $-A certain machinery costs P 50,000 lasts 12 years with a salvage value of P 5,000. If the owner decides to sell it after using for 5 years, what should be his price be so that he will not lose or gain financially in the transactions? Use double declining balance method for depreciation.
- A depreciable property costing P1,400,000 with original residual value of P80,000 after 10 years, had been revalued at a replacement cost of P1,680,000 with residual value of P20,000. The age of the asset is four years when it was revalued. What is the revaluation surplus? Please answer it complete using good accounting form. Thank youAne barcode reading device has an instated cost basis of $21,760 and an estimated service life of seven years it will have a zero salvage valun at that time. The 150% deckning balance method is used to depreciate this asset a. What will the depreciation charge be in yearseven? b. What is the book value at the end of years? e What is the gain (or loss) on the disposal of the device if it is sold for $900 after six years? a. The depreciation charge in year soven will be $(Round to the nearest dollar) CETTEA certain machinery costs P 1,021,778 which will last for 18 years with a salvage value of P 144,755. Money is worth 20%. If the owner decides to sell it after using it for 6 years, what should his price be so that he will not lose or gain financially in the transaction?
- XMohan & Co. is considering the purchase of machine. Two machines X and Y each Costing Rs.50, 000 are available. Earnings after taxes before depreciation are expected to be as under: Year 1 2 3 4 5 Machine 'X' 15000 20000 25000 15000 10000 (Rs.) Machine 'Y' (Rs.) 5000 15000 20000 30000 20000 Estimate the two alternatives according to: (a) Payback method, and (b) NPV method a discount rate of 10% is to be used.A new barcode reading device has an installed cost basis of $21,700 and an estimated service life of seven years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset a. What will the depreciation charge be in year seven? b What is the book value at the end of year six? c What is the gain (or loss) on the disposal of the device if it is sold for $3,000 after six years? a. The depreciation charge in year seven will be (Round to the nearest dollar.) b The book value at the end of year six is $ (Round to the nearest dollar.) c The on the disposal of the device if it is sold for $3,000 after six years is $1. (Round to the nearest dollar.) gain lossKeating Co. is considering disposing of equipment with a cost of $74,000 and accumulated depreciation of $51,800. Keating Co. can sell the equipment through a broker for $33,000, less a 7% broker commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $49,000. Keating will incur repair, insurance, and property tax expenses estimated at $12,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative is Oa. $4,417 Ob. $7,572 Oc. $9,465 Od. $6,310 Previous Next 7:36 PM 12/13/2020 CP DELL