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

Q: Sheffield Corp. reported the following for 2022: Income tax expense $68000 Contribution margin…

A: Introduction: Controllable cost is a variable cost that may be adjusted based on a business decision…

Q: Luki-Liku Co. purchases an asset for $100,000 with an estimated life of 5 years and a salvage value…

A: Luki-Liku Co. purchases an asset for $100,000 with an estimated life of 5 years and a salvage value…

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

A: Income and balance sheet statements:

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

A:

Q: In 2018 an asset was purchased for $2,000,000. The asset qualified for Initial Allowance. The…

A: The initial allowance is an allowance given in the tax code for qualifying assets in the first year…

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: On 31 December 2013, the fair value of the asset less costs to sell was OMR 50,000 and the expected…

A: Present value of future cash flow = Expected annual future cash flows x Present value factor

Q: Please correct show steps

A: The objective of the question is to calculate the Year 1 cash flow for a proposed project. The cash…

Q: Calculate the cap rate using the following information. NOI is $10,000. Acquisition price is…

A: NOI=$10000Price=$100000Find out cap rate

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: In 2018 an asset was purchased for $2,000,000. Initial Allowance (I.A) Rate was 20%. Annual…

A: The balancing adjustment is the difference between the sale price of the asset with the cost of…

Q: What is the annual operating free cash flow if operating revenues increase by $1.2 million,…

A: Operating Cash flow is the amount which is earned by the investor from the project. It is the net…

Q: 7.5 years

A: Given information : Initial investment = OR 60,000 Periodic cash flows = OR 8000 per year

Q: Suppose you sell a fixed asset for $10,000 when its book value is $2,000. If your company's marginal…

A: Book value is the carrying value of an asset or the value of an asset in the accounting books. Each…

Q: Suppose you sell a fixed asset for $126,000 when it's book value is $157,000. If your company's…

A: The computation of after tax cash flow is as follows:Hence, the after tax cash flow is $136850.

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: Suppose you sell a fixed asset for $112,000 when its book value is $112,000. If your company's…

A: Cash flow is the movement of money in and out of a company.

Q: The company sold machines 1/1 / 20X5 in X for 163,350 € which will be paid 31.12.20X6. A charged X…

A: Effective interest rate is nothing but compunding of the interest.  As compared to…

Q: milan purchases equipment costing $509,634. the ewuipment is to be depreciated straight line to zero…

A: Terminal cash flow can be calculated by with the help of following formula  Terminal Cash Flow…

Q: An asset costing £20,000 is expected to last three years when it can be sold for £16,000. The tax…

A: Capital allowance on assets is also known as Depreciation expenses which is charged on assets every…

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: Question: which of the following is closest to the estimated sales value if a property has an…

A: To estimate the sales value of a property using the capitalization (cap) rate, we can use the…

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: 2018 an asset was purchased for $2,000,000. Initial Allowance (IA) Rate was 20%. Annual Allowance…

A: Step 1: Calculate Initial AllowanceInitial Allowance Rate = 20% Purchase Price = $2,000,000Initial…

Q: Gross carrying amount of fixed assets = 1 500 000 Period of useful life (financial accounting) = 6…

A: Deferred tax means notional assets or liability  to recognized for purpose income tax calculation.…

Q: A company with a Tax Rate of 22% is going to sell a fixed asset with a Book Value of $134,000 for a…

A: The value at which a company disposed of its used assets is term as the salvage value.

Q: A machine could be purchased for £800,000; it would be used for 3 years and then sold for £580,000.…

A: NPV(Net present value) is a capital budgeting technique which is used when the company wants to…

Q: What is the (after-tax) net income?

A: The income statement is a financial statement which shows the total revenue and total expenditure of…

Q: A proposed new investment has projected sales of $515,000. Variable costs are 36 percent of sales,…

A: The variable costs are the expenses that change in direct proportion to the level of production or…

Q: On 31 December 2013, the fair value of the asset less costs to sell was OMR 50,000 and the expected…

A: Depreciation is a method to recover the cost of the asset over its useful life.

Q: New asset costs $12,000. The ol asset has a book value of $0 and will be sold for $3,000, increase…

A: Initial outlay is amount of investment that is made in assets of the company including the increase…

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: Consider an asset that costs $601,119 and is depreciated straight-line to zero over its 10-year tax…

A: After tax cash flow from asset is the cash received on the sale of an asset after adjustment for the…

Q: A property sold for $4.9 million, which equated to a 6.95% cap rate on the estimated first year NOI.…

A: In this question, we are required to determine the expected NOI.

Q: If the property before tax cashflow (PBTCF) in a given year is $125,000, total debt service is…

A: The Equity after tax cash flow of the investor is that income after deducting all expenses and tax.

Q: An existing asset being considered for replacement has a current MV of $12,000 and a current BV of…

A: Capital Budgeting: Capital budgeting decisions are the most important decision in corporate…

Q: A leasehold office property is let for 9 years with a profit rent of RM300,000 per annum (gross) for…

A: A leasehold property is one that is leased to the buyer of the property for a predetermined amount…

Q: Consider an asset that costs $1,280,170 and is depreciated straight-line to 83,206 over its 14-year…

A: Cost of asset = 1,280,170 residual value = 83206  estimated life = 14 year annual depreciation =…

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: Suppose you sell a fixed asset for $312,000 when its book value is $102,000. If your company’s…

A: After-tax cash flow is the selling price less the tax paid on capital gain. Capital gain is the…

Q: Consider an asset that costs $675,160 and is depreciated straight-line to 95,927 over its 10-year…

A: Formula.Depreciation per year=( cost - salvage value) ÷ useful life.