A company has the following expenditures during the year Advertising Employee training Customer outreach and consultation The company believes that these efforts have increased the fair value of the entire company by $137,500 How much goodwill can the company recognize at the end of the year associated with these expenditures? Mutiple Choice O O $1,300,000 $137.500 $68750 $ 550,000 68,750 481,250 10
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- government in order to defray safety and environmental incurred over four years, respectively, P2,000,000, Prepare journal entries for the first year to record each An entity received a government grant under the following 1. An entity received a grant of P30,000,000 from the British Problem 24-1 (PAS 20) An entity received a government grant under the follo independent situations: costs within the area where the entity is located. The safety and environmental costs are expected to be P4,000,000, P6,000,000 and P8,000,000. 2. An entity received a grant of P40,000,000 from the American government for the construction of laboratory and research facility with an estimated cost of P50,000,000 and useful life of 20 years. 3. An entity is granted a large tract of land in Cordillera by the Philippine government. The fair value of the land is P50,000,000. The grant requires that the entity shall construct a factory and employ only personnel residing in the Cordillera region. The cost of the…During the past two years, through extensive advertising and improved customer relations, jEAN Corporation estimated that it had developed customer goodwill worth $500,000. For the current year, determine the amount of goodwill Orange may amortize. a.$26,667 b.$-0- c.$16,667 d.$33,333Accounting for Contribution Revenue Hannon University, a private, nonprofit university, receives a letter from an alumnus who pledges $2,800,000 for the establishment of a center for public service. The donor expresses the wish that the amount be used in the next fiscal year, but the donor's letter does not identify any barriers to be overcome or identify a right of release. Based on history, Hannon University expects to collect 95% of the pledged amount. 1. Record the journal entry that would be recorded upon receipt of the letter. Enter accounts in order of magnitude (largest to smallest amounts), debits first. Account Debit To record the pledge from an alumnus. くくく 0 0 0 Credit 0 0 0 2. How would the pledge have been recorded if Hannon University were a public university? ◆
- A company receives a government grant of $500,000 on 1 April 20X7 to facilitate purchase on the same day of an asset which costs $750,000. The asset has a five year useful life and is depreciated on a 30% reducing balance basis. Company policy is to account for all grants received as deferred income. What amount of income will be recognised in respect of the grant in the year to 31 March 20X9?Accounting for Contribution Revenue Hannon University, a private, nonprofit university, receives a letter from an alumnus who pledges $4,400,000 for the establishment of a center for public service. The donor expresses the wish that the amount be used in the next fiscal year, but the donor's letter does not identify any barriers to be overcome or identify a right of release. Based on history, Hannon University expects to collect 95% of the pledged amount. 1. Record the journal entry that would be recorded upon receipt of the letter. Enter accounts in order of magnitude (largest to smallest amounts), debits first. Account Debit To record the pledge from an alumnus. 0 0 0 Credit Revenue would have been recorded for the full pledge amount. The pledge would not have been recorded. The revenue would not have been recorded as restricted. 0 0 0 2. How would the pledge have been recorded if Hannon University were a public university? →A non-profit organization received S80,000 as the entrance fee of a new member. If 10% of the fee has to be capitalized, what is the amount of fee needs to be shown in the income and expenditure account? O a. S72,000 O b. $82,000 O . S80,000 O d. $62,000
- Question Content Area The president of Christmas Corporation donated a building to Tuesday Corporation. The building had an original cost of $675,000, a book value of $255,000, and a fair market value of $475,000. The journal entry by Tuesday Corporation to record this donation will include a debit Building for $675,000 and credit Gain for $200,000. debit Building for $255,000 and credit Gain for $255,000. debit Building for $475,000 and credit Gain for $200,000. debit Building for $475,000 and credit Gain for $475,000.QUESTION 1 In January, 2020, Harmony Inc. has the following expenditures related to manufacturing a new generation of widgets. Match each expenditure to the appropriate accounting treatment on the right. V V Takes possession of a widget- manufacturing machine. The vendor sends an invoice for $550,000. Pays sales tax of $33,000 on the machine to the government. Pays employees $95,000 for research and development to finalize the widget design. Receives an invoice for $4,250 from the company that shipped the machine. Pays employees $16,500 to install, customize, and test the widget- manufacturing machine. Pays $3,000 for a one-year warranty (insurance) plan for the machine, with coverage beginning when the machine is placed into service on February 1. A. Capitalize to a different asset account. B. Expense, C. Capitalize to the Machine account. D. No accounting entry is necessary.Group Activity 2. On January 1, 2021, Entity A received land with fair of $200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 2021 for a total cost of $1,000,000. The building has an estimated useful life of 10 years and zero residual value. a. How much is the income from government grant in 2021 and 2022, respectively? b. How much is the carrying amount of the building on December 31, 2022 under the gross presentation and net presentation? c. How much is the depreciation expense recognized in 2023 under the gross presentation and net presentation?
- On january 2 2021 brand company received a grant of P60,000,000 to compensate it for costs it incurred i planting trees over a period of five years. Brand company will incur such cost in this manner: 2021 2,000,000 2022 4,000,000 2023 6,000,000 2024 8,000,000 2025 10,000,000 actual costs incurred in the planting trees showed 2,000,000 and 4,000,000 in years 2021 and 2022, respectively. However in 2023 and 2024 the company has stopped planting trees. Due to the non fulfillment of its obligation, the government is demanding an immediate repayment of the grant in the amount of 50,000,000 which is considered reasonable. What is the grant income for the year 2021?takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=D&inprogress3false Calculator Prepare the journal entry for the following transaction. Apr. 15 Last year, Titan Corporation's board of directors appropriated $150,000 for the purchase of a new storage facility over a three- year period. This year's appropriation for $50,000 was made on this date. If an amount box does not require an entry, leave it blank. Page: 1 POST. DATE DESCRIPTION DEBIT CREDIT REF. 1 Apr. 15 2.17. Ebasan Company received a grant of P60,000,000 to compensate it for costs it incurred in planting trees over a period of 5 years. Ebasan will incur costs as follows: 2021 2022 P2,000,000 4,000,000 2023 6,000,000 2024 8,000,000 2025 10,000,000 Based on the provisions of PAS 20, how much should be recognized as income from government grant at the end of 2021? A. 60,000,000 B. 12,000,000 C. 2,000,000 D. 4,000,000