On December 31, 2021, a machine owned by SLP COMPANY was destroyed by a fire. SLP COMPANY incurred removal and clean-up costs of P40,000. The machine had a book value of P450,000 and a fair value of P510,000 at the time of the fire. The machine was insured “new to old” and was replaced by the insurance company with a new one currently selling at P560,000. The loss due to fire to be reported in the 2021 income statement is

4. On July 31, 2021, Cheesecake Factory Restaurant Company sold ice cream equipment for $39,100. The equipment was originally purchased for $75,960, had no salvage value, and a useful life of 10 years. Cheesecake Factory uses straight-line depreciation and accumulated depreciation on Dec. 31, 2020 totaled $45,576. No journal entries have been made for depreciation in 2021. 1. Record the journal entry to update depreciation 2. Record the journal entry to record the sale of the equipment.   Account Name                   Debit                  Credit 1                                                                                 2

In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)   a. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a partnership?  Total Gain/Loss Recognized Character of Recognized Gain/Loss Ordinary Gain/Loss 1231 gain/Loss

Chester is a company dedicated to the transports. On 1st of March 2019, Chester sells its unprofitable segment, a restaurant activity. This segment generated in 2019 a net loss of $92,000 and its assets sold at a loss of $80,000. On 1" of May 2019, an earthquake destroyed one of Chester's offices. The company suffered a loss of $230,000. On 31st of December 2019, the board of managers decides to change the depreciation method from straight line to 200% declining balance method for the fleet of trucks acquired the 1st of January 2016. The effect of the change is an additional expense of $96.000 For the while year 2019 Chester reported an income from continuing operations of $1,950,000. Applicable tax rate is 30%. Chester had 200,000 shares of capital stock outstanding throughout the year Question 1: Prepare a condensed income statement including proper presentation of the discontinued restaurant operations and the extraordinary loss. Include all aporooriate earnings per share fieures.

On January 1, 2020, Russell Company purchased a copyright for $2,000,000, having an estimated useful life of 16 years and no salvage value. On October 15, 2020, Russell paid $200,000 legal fees in an unsuccessful infringement lawsuit of the copyright. On March 1o, 2021, Russell paid $300,000 for legal fees in a successful defense of the copyright. This defense does not change the useful life of the copyright. On December 31, 2021, it is estimated that the undiscounted sum of future cash flows associated with the copyright is $1,700,000 and its fair value is $1,450,000. Russell uses the straight-line method for amortization of all intangible assets. Instructions Write all the journal entries related with the copyright during these two years. Be sure to show all calculations and round to the nearest dollar. Russell's fiscal year-end is December 31.

n year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)   c. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were increased to $60,000? Total Gain/Loss Recognized Character of Recognized Gain/Loss Ordinary Gain/Loss 1231 gain/loss

8. In February of the current year, the office building of Kindley, Laux and Weeks, CPAs (KLW) was destroyed in a hurricane. The building originally cost $750,000 and had accumulated depreciation of $300,000. KLW received an insurance settlement in the amount $800,000. What is the realized gain, recognized gain, and basis of the new of the new building assuming the new office building KLW was acquired in October of the current year? New Building Cost Realized Gain Recognized Gain Basis of New Building $700,000 $800,000 $900,000 $ $ $ $ $ $ EA

In 2020, a business suffered the theft of a truck. Before the theft, the fair market value of the truck was $25,000. The adjusted basis of the truck is $18,000 and the insurance reimbursement is $11,000.  What is the amount of the business casualty loss?

On March 20, 2020, FineTouch Corporation purchased two machines at auction for a combined total cost of $214,000. The machines were listed in the auction catalogue at $110,000 for machine X and $155,000 for machine Y. Immediately after the auction, FineTouch had the machines professionally appraised so it could increase its insurance coverage. The appraisal put a fair value of $107,100 on machine X and $130,900 on machine Y.On March 24, FineTouch paid a total of $4,800 in transportation and installation charges for the two machines. No further expenditures were made for machine X, but $5,600 was paid on March 29 for improvements to machine Y. On March 31, 2020, both machines were ready to be used.The company expects machine X to last five years and to have a residual value of $3,600 when it is removed from service, and it expects machine Y to be useful for eight more years and have a residual value of $14,580 at that time. Due to the different characteristics of the two machines,…

A tornado destroys your office building on 6/1/2019. Here are the facts $100,000 Historical cost of office building $40,000 depreciation taken on office building $250,000 fair market value before tornado $0 fair market value after the tornado The building was insured for 80% of the fair Market value of the building Insurance proceeds were received on 7/15/2020 What is the realized gain and when do the proceeds have to be reinvested to avoid gain recognition under IRC §1033?     A. $100,000 realized gainInsurance proceeds must be reinvested in like kind property by 12/31/2021B. $190,000 realized gainInsurance proceeds must be reinvested in like kind property by 12/31/2021C. $100,000 realized gainInsurance proceeds must be reinvested in like kind property by 12/31/2022D. None of the above