REQUIRED: Prepare the journal entries relating to the reversal of the impairment loss in the 2021 year of assessment

Q: 0.  It had been depreciated to $3,000.  The original purchase price was $6,000.  Your tax rate is…

A: The right answer is option D$4.600

Q: A project has the following net profit after tax set out below. The average book value of the assets…

A: ARR is one of the capital budgeting tools that can be used by an investor to evaluate a proposed…

Q: Based upon the information below, what is the value of the company as of 1/1/2021 (use the APV…

A: Here,…

Q: ssuming that capital requirement for new machinery is P135,000; net of sale of present equipment –…

A: Payback period is no. of years required to recover the amount invested.

Q: Use the following information for Taco Swell, Incorporated, (assume the tax rate is 21 percent):…

A: Income and balance sheet statements:

Q: A company plans to purchase a piece of equipment that costs $192,000 and qualifies for five-year…

A:

Q: 4.2. The following information relates to Machine Productive at 31 December 2020: Historic Carrying…

A: When the fair market value of an asset is less than the book or carrying value of asset, the asset…

Q: Using a capitalization rate of 10% a commercial property is valued at $420,000. The expenses are 30%…

A:

Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…

A: Calculation of Percentage Change in Sales Given ,    2019 2018 Sales 810000 792000 The Sales…

Q: Initial equipment cost=$100,000 Market value at the end of 6 years = $6,000 Use MACRS…

A: Cashflow:Cashflow is a financial metric that represents the movement of money in and out of a…

Q: Required information Complete the last four columns of the table below using an effective tax rate…

A: Macrs stands for modified accelerate cost recovery system. Is a depreciation method for tax purposes…

Q: Black River Adventures has net income of $3,518, interest expense of $1,715, sales of $24, 450, and…

A: The net income is the result of the income statement.The income statement is an essential part of…

Q: Pertinent information for two alternatives A and B is shown below. If i=10%/year and income tax rate…

A: Companies invest money in projects in the hope there will be cash flows from the project in the…

Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…

A: Sales: Sales include a number of goods and services sold by the organization during their accounting…

Q: during 2019. The change in gross profit due to change in cost price must be:

A: Gross profit % = Gross profit / Sales Gross profit is one of the operational performance indicators.…

Q: Pertinent information for two alternatives A and B is shown below. If i=10 % / year and the…

A: It is the amount of reduction in the value of a tangible fixed asset due to tear and wear,…

Q: The change in gross profit due to change in cost price must be

A:

Q: (b) Calculate the capital porpetuily where the ap

A: Capital value is the equivalent value based on time and interest rate of the future cash flow that…

Q: MARCS life will be purchased for $10,000 years then it It produces $2,000 per year for 6 will be…

A:

Q: Pertinent information for two alternatives A and B is shown below. If i=10% / year and the effective…

A: Since the MACRS recovery is 5 years the depreciation rates will be seen in the MACRS table which are…

Q: A property purchased for $100,000 with an NOI of $7,000 per 10 years will be sold for $140,000. Cost…

A: It is the amount of tax levied on the investor who makes the profit from the sale of an investment…

Q: The following information is taken from Pork Humba Company’s 2020 profit and loss: Profit before…

A: Temporary difference (lesser amount of depreciation on tax return) = Deferred assets / tax rate =…

Q: If the tax 2000 OMR, depreciation is 3000 OMR, amortization 1000 OMR, EBITDA to interest coverage is…

A: Given the following information: Tax: $2,000 Depreciation: $3,000 Amortization: $1,000 EBITDA to…

Q: Z Ltd.has provided depreciation as per accounting records740 lakhs but as per tax records 760 lakhs.…

A: Introduction:- Differed tax asset/Liability arises where The difference between taxable income and…

Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…

A: Gross profit is the profit earned by an organization before its direct expenses (admin and selling…

Q: using a capitalization of 10% a commercial property is valued at 420000. the expenses are 30% of the…

A: Capitalization rate = 10% Property Value = 420,000 Expenses = 30% of gross income

Q: What is the fair value of the plan asset as of December 31, 2014

A: Fair value of the plan asset at the end is value of the plan assets which has been computed by the…

Q: Stump Storage Co. is expecting to generate after-tax income of $145,264, $135,468, and $176,894 for…

A: ARR means Accounting rate of return. It means on an average how much net income has been earned on…

Q: TJ Industries has revenue of $400,000 and expenses of $250,000. The depreciation cost is $80,000 and…

A: The objective of the question is to calculate the depreciation tax shield for TJ Industries. The…

Q: Initial Equipment Cost, $M 12.0 Depreciation, % 75.00% Current Equipment Value, $M 4.0…

A: Current Book Value = Initial cost * ( 1 -  Depreciation )   Profit/Loss On Sale = Current Equipment…

Q: AZA Ltd is considering the purchase of a machine for R2 750 000, which would be sold after seven…

A: In accountancy, machine is a form of asset and is reported under the asset side of the balance…

Q: Hani Ltd has tar written down value on its main pool of plant and machinery of E20.000 on 6 April…

A: Hani Ltd., On 06.04.2019, Tax written down value on plant and machinery = E20000  In year to…

Q: If the total fixed cost of certain power station is 1280500 $,what is the equivalent annual payment.…

A: Interest rate = 5.5% Fixed Cost = 1,280,500 Time Period (N) = 22 years Taxes = 5% of Fixed Cost = 5%…

Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…

A: 2018   2019   sales 792,000 sales 810,000 COS 464,000 COS 480,000 gross profit 328,000 gross…

Q: Black River Adventures has net income of $3,518, interest expense of $1,715, sales of $24, 450, and…

A: The net income is the result of the income statement.The income statement is an essential part of…

Q: 3) ( Below table shows the calculations for an after-tax analysis of a machine purchase alternative.…

A: Present worth computes the existing value of future benefits by discounting future worth with a…