Tate Corporation purchased a building for its grocery store for $30,000 in 1970.  Based on inflation estimates, the amount of this asset has been adjusted in the  accounting records. The building is now reported at $75,000. Which of the following  concepts or principles of accounting is being violated and why

Calvin Corporation’s office was burglarized. The thieves stole 10 laptop computers andother electronic equipment. The lost assets had an original cost of $35,000 andaccumulated tax depreciation of $19,400. Calvin received an insurance reimbursementof $10,000 related to the theft loss.Required:Determine the amount and character of gain or loss recognized as a result of this theft.Note: Enter a loss with a minus sign.

On January 1, year 1, Wardags Co. purchased a P6,000,000 machine, with a five-year useful life and no salvage value. The machine was depreciated by an accelerated method for book and tax purposes. The machine’s carrying amount was P2,400,000 on December 31, year 2. On January 1, year 3, Wardags changed to the straight-line method for financial reporting purposes. Wardags can justify the change. Wardags’s income tax rate is 30%. In its year 3 income statement,   1. What amount should Warren report as the cumulative effect of this change? 2. On January 1, year 3, what amount should Warren report as deferred income tax liability as a result of the change?

Charles Turner Construction Incorporated is a creditor of ABC Company. Turner constructed the office building in which ABC has its headquarters. At the time the building was constructed, Turner attached a lien on the building as security for the $80,000 note which Turner accepted. Now, ABC Company has filed for bankruptcy and it is estimated that the building has a net realizable value of $70,000. Turner’s status is:   Fully Secured Partially Secured Unsecured A. Yes No Yes B. No No Yes C. No Yes No D. No Yes Yes E. Yes No No

During an audit of Madison Company’s December 31, 2020 records it was discovered that the company did not accurately accrue for $12,500 of depreciation expense. The accrual of interest expense of $4,500 was also omitted. These errors occurred in 2019 and have a material impact on Madison’s financial records. Madison’s net income for the year was $123,000. The company is subject to a 35% tax rate. The company had a retained earnings balance of $557,500 on January 1, 2020. No dividends were paid. Required: 1. Prepare the necessary journal entries to correct the accounting records of Madison Company’s books. 2. Prepare the statement of retained earnings for 2020. 1. Prepare the necessary journal entries to correct the accounting records of Madison Company’s books. For grading purposes, prepare four separate entries dated December 31. General Journal Instructions PAGE 1   GENERAL JOURNAL     DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1           2…