a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset. Total Amount of Amount of § 1245 Recapture Gain or Loss Asset Rack Forklift Bin Siena has $ loss Character of Gain or Loss Ordinary income § 1231 loss Ordinary income X of ordinary income 7,000 X X ✓ due to § 1245 recapture and 7,000 X Balance of Gain or Loss 0 ✓ 0 X of § 1231 X

a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset. Total Amount of Amount of § 1245 Recapture Gain or Loss Asset Rack Forklift Bin Siena has $ loss Character of Gain or Loss Ordinary income § 1231 loss Ordinary income X of ordinary income 7,000 X X ✓ due to § 1245 recapture and 7,000 X Balance of Gain or Loss 0 ✓ 0 X of § 1231 X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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B11.
Fair value as a method of asset measurement is defined as: Multiple Choice O O the cost of an asset adjusted for the depreciation or amortization accumulated over its lifetime. price that would be received to sell assets in an orderly transaction between market participants on a given date. the net amount of cash into which an asset could be converted in the ordinary course of business. the value of what is given in exchange for the asset at its initial acquisition.
A fixed asset with a cost of $27,381 and accumulated depreciation of $24,642.90 is sold for $4,654.77. What is the amount of the gain or loss on disposal of the fixed asset? a.$1,916.67 loss b.$2,738.10 gain c.$1,916.67 gain d.$2,738.10 loss
Capital expenditures incurred subsequent to purchase of property assets increase total assets. T/F
Q5 Under CCA method, depreciation is provided on the _____ of the asset: a. Historical cost b. Past cost c. Current cost d. Original cost
Gains and Losses results from realization events such as: a. sales, purchases, exchanges, or other disposition of property. b. sales, exchanges, or other disposition of property. c. Disposition , sales and donations. d. all of the above.
_______ 9. Which of the following constitute property for purposes of §351 Money Debt of Transferee evidenced by a security Debt of Transferee NOT evidenced by a security Interest accrued on b & c after the Transferor acquired the debt Only A Only A & B Only A, B, & d All of the above
E4
Time left 0:15:48 18 When accounting for self-constructed PPE and computing the amount of interest cost to be capitalized, the concept of "avoidable interest" refers to t of O a. that portion of average accumulated expenditures on estion which no interest cost was incurred O b. a cost of capital charge for equity O c. that portion of total interest cost which would not have been incurred if expenditures for asset construction had not been made O d. the total interest cost actually incurred
A fixed asset with a cost of $30,192 and accumulated depreciation of $27,172.80 is sold for $5,132.64. What is the amount of the gain or loss on disposal of the fixed asset? a.$2,113.44 loss b.$3,019.20 gain c.$3,019.20 loss d.$2,113.44 gain
Which one of the following statements regarding the book value of an asset is correct? Multiple Choice О It reflects the original cost of the asset less accumulated depreciation. O It is the original cost at which the asset was purchased. It is the original cost of the asset minus the depreciation expense for that asset during the year. O It is the fair value of the asset if the asset is sold.
Statement 1: Cost of land includes Unpaid taxes prior to date of acquisition assumedbythe buyer. Statement 2: Taxes incurred after the date of acquisition are capitalized. a. Statement 1 is correct b. Statement 2 is correct c. Both statements are correct d. Both statements are wrong