Please, not answered with the same person ABC Company obtained a patent in January 2019, at a cost of $ 200.000 Estimated useful life 8 year. The company incurred additional costs related to this patent in January 2020, amounting to $ 20.000 At the end of 2021 there was an economic downturn due to the pandemic, and a test for impairment of the fair value of in assets was carried out according to an independent appraiser, the recoverable value of the patent is $ 24,000. Instructions: Make journals at the end of 2019 to 2021

Please, not answered with the same person ABC Company obtained a patent in January 2019, at a cost of $ 200.000 Estimated useful life 8 year. The company incurred additional costs related to this patent in January 2020, amounting to $ 20.000 At the end of 2021 there was an economic downturn due to the pandemic, and a test for impairment of the fair value of in assets was carried out according to an independent appraiser, the recoverable value of the patent is $ 24,000. Instructions: Make journals at the end of 2019 to 2021

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 66P: At the end of 2020, Magenta Manufacturing Company discovered that construction cost had been...

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At the end of 2020, Magenta Manufacturing Company discovered that construction cost had been capitalized as a cost of the factory building in 2015 when it should have been treated as a cost of production equipment installation costs. As a result of the misclassification, the depreciation through 2018 was understated by 110,000, and depreciation for 2019 was understated by 90,000. What would be the consequences of correcting for the misclassification of the property cost? a. The taxpayer uses the FIFO inventory method, and 25% of goods produced during the period were included in the ending inventory. b. The taxpayer uses the LIFO inventory method, and no new LIFO layer was added during 2019.
On January 1, 2021, Bug Company purchased equipment with a cost of P10,440,000, a useful life of 10 years and no salvage value. The Company uses straight-line depreciation. At December 31, 2021 and December 31, 2022, the company determines that impairment indicators are present. The following information is available for impairment testing at each year end: 12/31/2021 12/31/2022 Fair value less cost to sell P9,115,000 P8,850,000 Value-in-use P9,155,000 P8,815,000 There is a change in the asset's useful life at the end of 2021 to 15 years from the date of acquisition. Which of the following statements is (are) correct if Bug Company uses revaluation model to account for this asset? Statement 1: The balance of revaluation surplus at the end of 2022 is P348.929. Statement 2: A gain on recovery of P223,786 is reported in Bug's income statement for year ended December 31, 2022. Statement 3: The asset is reported as of December 31, 2022 at P8,724,857. a. Only statement 1 is…
On January 1, 2021, Bug Company purchased equipment with a cost of P10,440,000, a useful life of 10 years and no salvage value. The Company uses straight-line depreciation. At December 31, 2021 and December 31, 2022, the company determines that impairment indicators are present. The following information is available for impairment testing at each year end: 12/31/2021 12/31/2022 Fair value less cost to sell P9,115,000 P8,850,000 Value-in-use P9,155,000 P8,815,000 There is a change in the asset’s useful life at the end of 2021 to 15 years from the date of acquisition. Which of the…
1) PT Sarmah obtained a patent in January 2019, at a cost of $ 200,000,000. Estimated useful life 8 year. The company incurred additional costs related to this patent in January 2020, amounting to $ 20,000,000 At the end of 2021 there was an economic downturn due to the pandemic, and a test for impairment of the fair value of int assets was carried out according to an independent appraiser, the recoverable value of the patent is $ 24,000,000. Instructions: Prepare journals at the end of 2019 to 2021 2) Questions no 2 in image Please answers type no hand writing
On January 2, 2020, Quezon Inc. purchased equipment with a cost of P10,500,000, a useful life of 12 years and no salvage value. The Company uses sum-of-the-years-digit method of depreciation. At December 31, 2020 and December 31, 2021, the company determines that impairment indicators are present. The following information is available for impairment testing at each year end: 12/31/20 Fair value less cost to sell P8,515,000 Value-in-use P8,551,000 12/31/21 Fair value less cost to sell P7,530,000 Value-in-use P7,315,000 There is no change in the asset’s useful life or salvage value. The 2021 income statement will report gain on recovery of?
On January 2, 2020, Quezon Inc. purchased equipment with a cost of P10,500,000, a useful life of 12 years and no salvage value. The Company uses sum-of-the-years-digit method of depreciation. At December 31, 2020 and December 31, 2021, the company determines that impairment indicators are present. The following information is available for impairment testing at each year end: 12/31/2020 12/31/2021 Fair value less cost to sell P8,515,000 P7,530,000 Value-in-use P8,551,000 P7,315,000 There is no change in the asset's useful life or salvage value. The 2021 income statement will report gain on recovery of?
On January 2, 2018, Rahaf purchased equipment with a cost of HK$2,088,000, a useful life of 10 years and no salvage value. The company uses straight-line depreciation. At December 31, 2018 and December 31, 2019, the company determines that impairment indicators are present. The following information is available for impairment testing at each year end: 12/31/2018 12/31/2019 Fair value less costs to sell HK$1,863,000 Hk$1,770,000 Value-in-use HK$1,870,000 HK$1,783,000 There is no change in the asset's useful life or salvage value. The 2018 income statement will report Impairment Loss of HK$
of Adam, Inc. purchased equipment in 2021 at a cost of $600,000. Two years later it became apparent to Adam, Inc. that this equipment had suffered an impairment of value. In early 2023, the book value of the asset was $510,000 and it is estimated that the fair value or market value is now $465,000. The entry to record the impairment is... a. No entry is necessary as p write-off violates the historical cost principle b. Debit Accumulated depreciation 90,000 and credit Reserve for Loss on Impairment of Equipment 90,000 O c. Debit Loss on Impairment of Equipment 70,000 and credit Accumulated Depreciation-Equipment 70,000 O d. Debit Loss on impairment of Equipment 45,000 and credit Accumulated Depreciation-Equipment 45,000
At 30 June 2019, there was an indication that Modern Machineries Ltd's machinery might be impaired. In preparing for the impairment testing, the accountants have estimated, as at 30 June 2019, the piece of machinery's fair value less costs of disposal to be $495,000 and its value in use to be $580,000. The machinery was purchased and installed on 1 October 2016 by $925,000, The machinery had an accumulated depreciation of $300,000 as on 30 June 2019. Modern Machineries Ltd uses the straight-line method of depreciation for this machinery. Required: Compute the impairment loss to be recorded at 30 June 2019? Journalize the required entries to record the impairment loss to be recorded at 30 June 2019?
On January 1, 2013, Laity Company purchased a patent with a cost of P5,200,000 and a useful life of ten years. On December 31, 2014, the entity determined that impairment indicators were present'. The fair value less cost of disposal of the patent was estimated to be P3,600,000. The, value in use is estimated to be P3,800,000. What amount should be reported as impairment loss for 2014? O P360.000 O PO O Answer not given O P560,000 O P880,000
On January 1, 2021, an impairment test was conducted by Jess Co. on its Radio Equipment which has an original cost of P1,000,000.00 and an accumulated depreciation in the amount of P300,000.00. Following this, it discovered that said Equipment had a fair value less cost to sell in the amount of P150,000.00 and a value in use in the amount of P300,000.00. Determine the Impairment Loss to be recognized on January 1, 2021.
Sheridan Company purchased equipment in 2019 at a cost of $917000. Two years later it became apparent to Sheridan Company that this equipment had suffered an impairment of value. In early 2021, the book value of the asset is $588000 and it is estimated that the fair value is now only $357000. The entry to record the impairment is