Broad Ltd. decided on July 1, 2023 to dispose of an asset group consisting of land and a building. An active plan of disposal is being carried out, and sale is highly probable within the following year. The assets carrying values and estimated recoverable amounts at July 1.2023 are as follows: Land Building Cost $ 600 Carrying Value Estimated Recoverable Amount $ 600 $ 1,000 3,700 $4,300 2.500 2.400 $3.100 $3.400 On December 1, 2023, the asset group sold for $3,380, net of costs to sell. Required: Prepare journal entries that are appropriate to record the information above.
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- Comprehensive At December 31, 2018, certain accounts included in theproperty, plant, and equipment section of Townsand Company's balancesheet had the following balances: LandBuildingsLeasehold improvementsMachinery and equipment $100,000800,000500,000700,000 During 2019, the following transactions occurred: 1. Land site number 621 was acquired for $1,000,000. Additionally,to acquire the land, Townsand paid a $60,000 commission to a realestate agent. Costs of $15,000 were incurred to clear the land.During the course of clearing the land, timber and gravel were recovered and sold for $5,000.2. A second tract of land (site number 622) with a building wasacquired for $300,000. The closing statement indicated that theland value was $200,000 and the building value was $100,000.Shortly after acquisition, the building was demolished at a cost of $30,000. A new building was constructed for $150,000 plus the following costs: Excavation feesArchitectural design feesBuilding permit fee…Drabinski Ltd. decided on 1 July 20X3 to dispose of an asset group consisting of land, a building, and equipment. An active plan of disposal is being carried out, and sale is highly probable within the following year. The assets’ carrying values and estimated recoverable amounts at 1 July 20X3 are as follows: Cost Carrying Value Estimated Recoverable Amount Land $ 470,000 $ 470,000 $ 498,000 Building 3,400,000 1,640,000 970,000 Equipment 1,040,000 470,000 357,000 $ 4,910,000 $ 2,580,000 $ 1,825,000 On 31 December 20X3, the net recoverable amount of the group is reliably estimated to be $1,859,000. On 1 April 20X4, the asset group is sold for $1,919,000, net of costs to sell. Prepare journal entries that are appropriate to record the information above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Do not give answer in imageMonroe Company is engaged in a number of research and development projects. Its accounting policy with regards to research and development is to capitalize expenditure as far as allowed by PAS 38 Intangible Assets. At June 30, 2024, the following balances existed in the company's accounting records: Project A : Development completed June 30, 2022. Total expenditure P200.000. Being amortized over five years on the straight-line basis in accordance with the company's standard policy. Balance at June 30, 2024: P120,000. Project B: A development project commenced July 1, 2019. Total expenditures in the years ended June 30, 2023 and June 30, 2024 totaled P175,000. During the year ended June 30, 2025, it became clear that a competitor had launched a superior product and the project was abandoned. Further development expenditure in the year ended June 30, 2025 amounted to P55,000. Project C: Development commenced October 1, 2020. Expenditures per year: Year ended June 30, 2025,…
- Selected accounts included in the property, plant, and equipment section of Lobo Corporation’s balance sheet at December 31, 2019, had the following balances. LandLand improvementsBuildingsEquipment $300,000140,0001,100,000960,000 During 2020, the following transactions occurred. 1. A tract of land was acquired for $150,000 as a potential future building site. 2. A plant facility consisting of land and building was acquired from Mendota Company in exchange for 20,000 shares of Lobo’s common stock. On the acquisition date, Lobo’s stock had a closing market price of $37 per share on a national stock exchange. The plant facility was carried on Mendota’s books at $110,000 for land and $320,000 for the building at the exchange date. Current appraised values for the land and building, respectively, are $230,000 and $690,000. 3. Items of machinery and equipment were purchased at a total cost of $400,000. Additional costs were incurred as follows. Freight and…Use this information to answer the following 6 questions. Madison Company acquired a depreciable asset at the beginning of Year 1 at a cost of $12 million. At December 31, Year 1, Madison gathered the following information related to this asset: Carrying value of the asset at 12/31/Y1 $10 million Fair value of the asset at 12/31/Y1 $7.5 million Sum of expected future cash flows at 12/31/Y1 $10 million Present value of expected future cash flows at 12/31/Y1 $8 million Remaining useful life at 12/31/Y1 5 years Determine the impact on Year 1 net income from depreciation and possible impairment under IFRS.Investment Property Determine the cost of the following items of investment acquired by Sasha Corporation during 2022; Land site for capital appreciation was acquired for P8,600,000. The company paid P430,000 commission to a real estate agent. Costs of P 135,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for P 65,000. The cost of investment property is _____________ Land and building were acquired to be held for under operating leases. The company made a de payment of P4,000,000, issued 20,000 P200 par ordinary shares with a market price of P240 per share, and issued a three-year non-interest-bearing note for P6,000.000 note is payable in equal annual installments of P2,000,000 at the end of each year from the date of purchase. The prevailing interest rate for similar notes is 10%. 30% of the purchase price is allocated to the land. Investment property is recorded at __________
- 1. E. Adentwi Enterprises Ltd bought a machine for GH₵ 150,000 on 1st January 2019. It depreciates the machine on cost over four years assuming a nil residual value.The company received a grant of GH₵30,000 from the municipal assembly to support the acquisition of the machines. required :Account for this grant under the netting off method. 2. Polycarp Ltd adopts revaluation model for subsequent measurement of its intangible assets in accordance with IAS 38: Intangible assets. The policy of Polycarp is to revalue its intangible asset at the end of each year. An intangible asset with an estimated useful life of 9 years was acquired on 1 January 2018 for GH¢45,000. It was revalued to GH¢54,400 on 31 December 2018 and the revaluation surplus was correctly recognized on that date. As at 31 December 2019, the asset was revalued at GH¢32,000.Required:Discuss the accounting treatment required in 2018 and 2019 financial statements.In January 1, 2020, the following assets of Company A had the following corresponding values: Carrying amount EUL Sound Value Year acquired 5,400,000 5,750,000 *7.600.000 7,850,000 Machinery Equipment O 3.122.600 O 3.050.000 Ⓒ 2.988.000 Residual Value 3.837.500 500,000 400,000 10 12 The company decided to measure these properties using revaluation model. Full year depreciation is taken on the year of purchase. In January 1, 2022, the replacement cost of equipment was revalued at P5.100.000. What is the amount taken to profit or loss as a result of the revaluation on January 1. 2022? 2017 2016An entity accounted for land using the revaluation model. On October 1,2020, the entity classified the land as held for sale. At that date, thecarrying amount of the land was P5,000,000 and the balance in therevaluation surplus was P1,500,000. At the same date, the fair value of theland was estimated at P5,500,000. The estimated cost of disposal isP100,000. On December 31, 2020, the fair value less cost of disposal ofthe land did not change. On October 1, 2021, the land was sold forP7,000,000.What amount of OCI is classified to retained earnings in 2021? A. 1,500,000B. 2,000,000C. 500,000D. Zero
- During 2015, PJM Bhd incurred further development expenditure of RM3 million on the new process which meets the recognition criteria for capitalization of an intangible asset. Required (a) In the light of MFRS138 Intangible Asset, briefly explain how each of the above transaction should be accounted for in the financial statements of PJM Bhd for the year ended 31 December 2017.On 30 June 2022, the statement of financial position of Brimbank City Council showed the following non-current assets. Buildings (at cost) $ 225 000 Accumulated Depreciation (45 000) 180 000 Commercial Land (at cost) 1 920 000 At 30 June 2022 Brimbank City Council decides to adopt the revaluation model for both these assets. On this date commercial land has a fair value of $1 800 000 and building has a fair value of $150 000 and useful re-estimated to 15 years. On 30 June 2023 Brimbank City Council reviews the value of its assets. The fair value of commercial land is reassessed as $1860 000. Building has no change in value on that date. Prepare the journal entries required to revalue the assets for the year ended 30 June 2023.On January 1, 2020, the historical balances of the land and building of Twang Company are: Accumulated Cost depreciation Land P 50,000,000 Building 300,000,000 90,000,000 The land and building were appraised on same date and the revaluation revealed the following: Fair value Land P 80,000,000 Building 350,000.000