Jebali Company reports gross income of $664,000 and other property-related expenses of $431,600 and uses a depletion rate of 20%. Calculate Jebali's depletion allowance for the current year. $fill in the blank 1
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- B11. Exercise 8-28 (Algorithmic) (LO. 8) Jebali Company reports gross income of $560,000 and other property-related expenses of $364,000 and uses a depletion rate of 21%. Calculate Jebali's depletion allowance for the current year.Note: Double Declining Balance = 200% Declining Balance A. How much is the depreciation for year 3? Select one: o a. P158,203.13 o b. P150,000 o c. P210,937.50 o d. P187,500 В. How much is the total depreciation as of year three using DDB method? C. What is the equipment's book value at the end of year three?Exercise 11-7 (Algo) Calculate operating activities-indirect method (LO11-3) Gemstone Distributors reports net income of $57,000. Included in that number is depreciation expense of $11,000 and a loss on the sale of land of $5,200. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $27,000, a decrease in inventory of $16,000, and an increase in accounts payable of $47,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities: GEMSTONE DISTRIBUTORS Statement of Cash Flows (partial) Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities < Prev 2 of 2 11 Next
- A Sala set which cost 9,250 depreciates by 25% of its value each year. Make out a depreciation table for the first 3 years and find the book value at the end of 3 years. (Declining Balance Method) O A. 3,902.34 В. 5,203.13 О с. 5,347.66 D. 4,046.88Calculating according VAS 8.1 Company A pay VAT by the tax deduction method, on December of year N have the situation of fixed assets as follows: (Unit: 1,000 VND). Given that all payments are made by cash in bank 2. Exchanged an older model machine for a new model. The old model had original cost of 800.000 and 440.000 in accumulated depreciation; its fair value was 400.000 (excluded VAT). Company paid 110.000 to complete the exchange which has commercial substance. The VAT rate for both machines are at 10% 3. Get 1 tangible fixed assets through long-term joint ventures with their cost: 600.000, has accumulated depreciation 200,000 (according to the books of the contribution partner). Venture Board re-evaluated it to 500.000. 4. Purchase a patent for 40.000. The legal and other fees for transfer the patent is 4.000. 5. Purchase a new machine on an installment plan with monthly payment of 23.000 in 36 months. Given that in case of paying in full, the price is 720.000( excluded 5% VAT).…PROBLEM 7: MULTIPLE CHOICE Entity A's total expenses for 20x1 were 239,000 before possible adjustment for the following: Salaries already earned by employees but not yet paid, i. P22,000 Entity A acquired a machine for P100,000 three years ago. i. The machine has a useful life of 10 years. No depreciation has yet been recognized in the current year. Of the total accounts receivable balance of P120,000, 5% is ii. estimated to be doubtful of collection. The related allowance account has a zero balance. How much is the adjusted total expenses? a. 257,000 b. 277,000 c. 283,000 d. 291,000
- 2.17 (LG 2.6) An asset costs $14 000. At a depreciation rate of 20 percent, calculate its book value using the declining-balance method: a. After one year b. After four years c. After seven years8.1 Company A pay VAT by the tax deduction method, on December of year N have the situation of fixed assets as follows: (Unit: 1,000 VND). Given that all payments are made by cash in bank 1. Purchased a machine for 70.000 which is used at the factory. In addition to the purchase price, company A made the following expenditures: freight, 3.000; installation, 6.000; testing, 4.000. It is sponsored by the Developing investment funds. 2. Purchased land and a warehouse for 1.200.000. In addition to the purchase price, company A made the following expenditures: broker's commission, 12.000; transferred tax, 6.000. An independent appraisal estimates the fair value of the land and warehouse at 840.000 and 560.000, respectively. 3. Sold an equipment for 6.600 (included 10% VAT). Its cost was 60.000 and accumulated depreciation through the disposal date was 52.000. Company also paid 500 commission to broker. 4. Exchanged an older model machine for a new model. The old model had original cost of…Assessment Task 6 - 1 1. Pine Corporation's books showed pretax income of P600,000 for the year ended December 31, 20x1. In the computation of federal income taxes, the following data were considered: Gain on involuntary conversion (expropriation) P350,000 Depreciation deducted for tax purposes in excess of depreciation deducted for book purposes 50,000 Estimated tax payments during 20x1 70,000 Income tax rate 30% What amount should Pine report as its current income tax liability on its December 31, 20x1, balance sheet? 2. For the year ended December 31, 20x1, Mont Co.'s books showed income of P600,000 before provision for income tax expense. To compute taxable income for taxation purposes, the following items should be noted: Income from exempt municipal bonds P60,000 Depreciation deducted for tax purposes in excess of depreciation recorded on the books 120,000 Proceeds received from life insurance on death of officer 100,000 Estimated tax payments Enacted corporate tax rate 30% What…
- 1. EX.09.195 Golden Sales has bought $135,000 in fixed assets on January 1st associated with sales equipment. The residual value of these assets is estimated at $10,000 at the end of their 4-year service life. Golden Sales managers want to evaluate the options of depreciation. al. Compute the annual straight-line depreciation. a2. Provide the sample depreciation journal entry to be posted at the end of each of the years. If an amount box does not reguire an entry, leave it blank. Dec. 31 b. Prepare the journal entries for each year of the service life for these assets using the double-declining balance method. If an amount box does not require an entry, leave it blank. Year 1, Dec. 31 Year 2, Dec. 31 Year 3, Dec. 31 Year 4, Dec. 31Accounting A. Tax payer incurred expenses of SAR 10,000 to alter and improve equipment with a cost base of SAR 100,000. Are these expenses deductible under article 18 of the law? B. Tax payer recorded the following journal entry Dr. Bad debt expense 10,000 Cr. Provision for doubtful receivable 10,000 Required: Is that provision deductible under article (14) of the law C. 1n 2020 Dr. Accounts receivable (Ibrahim) 100,000 Cr. Sales 100,000 In 2021 Dr. Bad debt expense 20,000 Cr. Accounts receivable Ibrahim) Required: Is that bad debt expense deductible under article (14) of the law?10. An asset which cost $10,000 when new is being depreciated under MACRS using a 5-year normal recovery period. What is the depreciation expense in year 3?A. $1,900B. $1,200C. $1,500D. $2,100