On May 15, 2020, Aldean Company, a calendar year taxpayer, purchased and placed into service a nonresidential
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A: Depreciation is the measure of a decrease in the monetary value of an asset. The value of an asset…
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A: Given that, Lopez acquired a building on June 1 2014 for 1,000,000 To calculate - Lopez's cost…
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A: The correct answer is $978000$720000
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A: Depreciation is normal wear and tear of any asset over its useful life
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A: MACRS (Modified Accelerated Cost Recovery System) is a method of calculating depreciation in which…
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A: Intangible assets are those assets which are not physically existed. In simple, these are those…
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A: SOLUTION FORMULAS- 1-DEPRECIATION AS PER STRAIGHT LINE METHOD = COST OF ASSET - SALVAGE VALUE / NO…
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Q: financial reporting
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A:
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A: Deffered Tax :— Differed tax means there is difference in tax due to Companies accounting & As…
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A: Solution: - The following formulas used to calculate the cumulative temporary book tax difference…
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On May 15, 2020, Aldean Company, a calendar year taxpayer, purchased and placed into service a nonresidential building. The company paid $140,000 total and allocated $40,000 of the cost to the land and $100,000 of the cost to the building based on fair market values. Compute Aldean’s maximum first-year
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- On April 1, 2024, Titan Corporation purchases office equipment for $50,000. For tax reporting, the company uses MACRS and classifies the equipment as 5-year personal property. In 2024, this type of equipment is eligible for 60% first-year bonus depreciation. For financial reporting, the company uses straight-line depreciation. Assume the equipment has no residual value.Required: Calculate annual depreciation for the five-year life of the equipment according to MACRS. The company uses the half-year convention for tax reporting purposes.Calculate annual depreciation for the five-year life of the equipment according to straight-line depreciation. The company uses partial-year depreciation based on the number of months the asset is in service for financial reporting purposes. In which year(s) is tax depreciation greater than financial reporting depreciation?On December 31, 2021, LJK Co. classified its building with a historical cost of P1,700,000 and accumulated depreciation of P1,020,000 as held for sale. All of the criteria under PFRS 5 are complied with. On that date, the land has a fair value of P525,000 and cost to sell of P35,000. 1. Assuming the building was not sold in 2022. However, the exception to the one year requirement was met. On December 31, 2022 the FV less cost to sell of the building is P470,000. What is the amount of impairment loss? 2. Assuming the building was not sold in 2023. However, the exception to the one year requirement was still met. On December 31, 2023 the FV less cost to sell of the building is increased to P515,000. What is the amount of cumulative impairment loss in 2023? 3. Assuming the building was not sold in 2023. However, the exception to the one year requirement was still met. On December 31, 2023 the FV less cost to sell of the building is increased to P515,000. What is the amount of gain on…Francis Corporation purchased an asset at a cost of $50,000 on March 1, 2020. The asset has a useful life of 8 years and a salvage value of $4,000. For tax purposes, the MACRS class life is 5 years. Compute tax depreciation for each year 2020–2025.
- HanshabenAyres Services acquired an asset for $144 million in 2021. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset/s cost is depreciated by MACRS. The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2021, 2022, 2023, and 2024 are as follows: _ ($ in millions) ____________ 2021 2022 2023 2024 Pretax accounting income $370 $390 $405 $440 Depreciation on the income statement 36 36 36 36 Depreciation on the tax return (57) (49) (23) (15) Taxable income…Ayres Services acquired an asset for $168 million in 2021. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset’s cost is depreciated by MACRS. The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2021, 2022, 2023, and 2024 are as follows: ($ in millions) 2021 2022 2023 2024 Pretax accounting income $ 385 $ 405 $ 420 $ 455 Depreciation on the income statement 42 42 42 42 Depreciation on the tax return (60 ) (64 ) (26 ) (18 ) Taxable income $ 367 $ 383 $ 436 $ 479 Required:For December 31 of each year, determine (a) the cumulative temporary book-tax difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account. Beginning of 2021 End of 2021 End of 2022 End of 2023 End of 2024 Cumulative…
- On July 1, 2024, Apache Company, a real estate developer, sold a parcel of land to a construction company for $4,128,000. The book value of the land on Apache’s books was $1,720,000. Terms of the sale required a down payment of $172,000 and 23 annual payments of $172,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2025. How much revenue will Apache recognize for the sale (ignoring interest), assuming that it recognizes revenue at the point in time at which it transfers the land to the construction company?On 1 January 20X8 Davidoff Co decided to revalue its land for the first time. A qualified property valuer reported that the market value of the land on that date was $45,000. The land was originally purchased 6 years ago for $32,000 The required provision for income tax for the year ended 31 December 20X8 is $15,500. The difference between the carrying amounts of the net assets of Davidoff (including the revaluation of the land above) and their (lower) tax base at 31 December 20X8 is $38,000. The opening balance on the deferred tax account was $5,500. Davidoff’s rate of income tax is 30%. Required Prepare extracts of the financial statements to show the effect of the above transactions.Zaki LLC purchased computer equipment (five-year property) on April 20, 2018, for $36,000 and used the half-year convention to depreciate it. Zaki did not take Section 179 or bonus depreciation in the year it acquired the furniture. In 2021, which is the fourth year Zaki LLC owned the property, the property was disposed of on November 10. What is Zaki's depreciation expense for 2021? MACRS tables.pdf O $518. O $2,074. O $2,248. O $4,147.
- On January, 2021, Joshtin Company owned an investment property which had an original cost of 7,250,000 and useful life of 50 years. On December 31, 2021, the fair value was 6,100,000 and on December 31, 2022, the fair value was 6,000,000. Under the fair value model, what is the expense to be recognized for the year ended December 31, 2022? 0 200,000 100,000 147,000On 1, 2020, Midland Company purchased a machine for P1,400,000. This machine has - year useful residual value of P200,000 , and deprecated using straight- method for financial statement purposesFor purposes, depreciation was P500,000 for 2020 and P400,000 for 2021. The 2021 Income before and depreciation was P2,000,000 , and the tax was 30%. The entity made an estimated tax payment of P200,000 during 2021 What is the total income tax payable on December 31, 20219Marin Inc. purchased computer equipment on March1,2020, for $68000. The computer equipment has a useful life of five year and a residual value of $800. Marin uses a double declining balance method of depreciation for this type of capital. For tax purpose, the computer is assigned to Class 10 with a 30% rate. prepare a schedule of CCA and undepreciated capital(UCC) for this asset covering 2020,2021,2022, assuming it is the only class 10 asset owned by Marin.
