FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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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- The Jordan Corp (C Corporation), a calendar year taxpayer, sold a piece of equipment, a piece of machinery, and a warehouse on March 30, 2021. Data on these disposals are as follows: The equipment was purchased on February 20, 2016 for $50,000. It was sold for $60,000 cash. After calculating 2021 depreciation, accumulated depreciation totaled $45,538. The machinery was purchased on February 7, 2017 for $130,000. It was sold for $30,000 cash. After calculating 2021 depreciation, accumulated depreciation totaled $112,596. The building was purchased on March 1, 1991 for $2,000,000. It was sold for $1,325,000 cash. After calculating 2021 depreciation, accumulated depreciation totaled $1,589,743. The building had a mortgage with a balance of $200,000 that the buyer assumed from the Jordan Corp. For each asset, Calculate the amount of the realized gain/loss Calculate the amount of the recognized gain/loss Calculate the amount and type of depreciation recapture, if any Calculate the…arrow_forwardTGIF Company owned a building on January 01, 2019, with historical cost of 52,000,000. The property is depreciated over 40 years on a straight-line basis with no residual value. The entity adopted a policy of revaluation of property. The building had so far been revalued twice at fair value. The fair values of the building are as follows: January 01, 2020 : 60,840,000 January 01, 2022 : 72,150,000.How much is the revaluation surplus to be reported in the statement of changes in equity for the year ended December 31, 2022? a. 23,660,000 b. 23,400,000 c. 24,050,000 d. 24,570,000arrow_forwardOn January 1, 2020, Diluc acquired land for a cost of P3,000,000 and a building costing P6,000,000.The building has a useful life of 6 years with no residual value. The land and building were properlyincluded under the caption of “Property Plant and Equipment”.On July 1, 2020 due to management decisions, the land and building qualified as “Held for sale” underIFRS 5 provisions on the same date the land had a fair value less cost to sell of P2,500,000, and thebuilding P5,300,000. The fair value less cost to sell of the land and building remained the same untilDecember 31, 2020.Requirements:1. What amount of assets must be presented in the December 31, 2020 financial statements fromthe foregoing events?2. What amount of depreciation expense was recorded in 2020?arrow_forward
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