Universal Gagarin purchased a residential unit for P3,000,000 and transferred it to its supervisory employee. The property has a zonal value of P3,500,000. Fair market value is P3,000,000. What is the fringe benefit tax? 80,769 O 94,231
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- ABC Company owns a condominium unit in “The XYZ Residences” which is near the factory and the plant’s administrative building. To make it convenient to its executive, it allowed the latter to use the said property as his residence. The Zonal Value of the property is P32,000,000 while its fair market value as shown in its current Real Property Tax Declaration amounts to P25,000,000. How much is the fringe benefit expense? Group of answer choices P0 P800,000 P32,000,000 P25,000,000A comparable property recently sold for $65,000. the only difference between the comparable property and the subject property is that the comparable property has a screened, enclosed pool valued at $10, 000. because the subject property is viewed as inferior to the comparable property that has the pool there should be a A. PLUS 10K ADJUSTMENT TO THE COMPARABLE PROPERTY B MINUS 10K ADJUSTMENT TO THE COMPARABLE PROPERTY C PLUS 10K ADJUSTMENT TO THE SUBJECT PROPERTY D MINUS 10K ADJUSTMENT TO THE SUBJECT PROPERTYAssume there are three separate real estate companies: US Realty (which applies the cost model with straight-line depreciation), UK Realty (which applies the revaluation model), and Singapore Realty (which applies the fair value model). Assume that on January 1, 2020, each company pays $1,000 to obtain an investment property, comprised of the land of negligible value and a building worth $1,200 (fair value). The building has a 10-year useful life, no residual value, and the fair value of the property is close to its value-in-use. If the companies want to sell the property, the transaction cost is negligible. (Hint: Use the account ``Fair Value Gain/Loss on Investment Property’’ when applying the fair value model.) Instructions Prepare the journal entries for the following events and transactions. (1) Acquisition on January 1, 2020 (2) Fair value of the building is $1,300 on December 31, 2020 (3) Fair value of the building is $1,100 million on December 31, 2021 (4) Fair value of the…
- B Ltd owns various apartment blocks as investment property in terms of IAS 40 – Investmentproperty. On 1 October 2021, B Ltd decided to sell one of its commercial properties - AlphaBlock.This property had a fair value of R15 million and was reflected as such in the financial statementsdated 31 December 2020. The fair value on 1 October 2021 was R17.5million. The directors haddecided to redevelop the Alphablock before selling it. B Ltd measures all investment propertyusing the fair value method.Required:• Explain how B Ltd should classify Alphablock in the financial statements up until 1 October2021 and how, if at all, this would change thereafter.• As part of your explanation, state at what value Alphablock should be reflected in thefinancial statements at both 1 October 2021 and thereafterCounting Crow’s investment property has a carrying amount of ₱3,600,000 under the fair valuemodel, before adjustment. If the fair value at year-end is ₱3,000,000, how much should be thegain or loss on transfer if Counting Crow would shift to cost model?Anderson disposes a vacant lot for P3,000,000. The lot has an Assessor's fair value of P2,800,000, a zonal value of P3,200,000, and an appraisal value of P3,500,000. What is the capital gains tax? P 0 P180,000 P192,000 P210,000
- A Ltd owns an owner-occupied asset that is measured using the revaluation model. The asset’scarrying amount at the end of the financial year is R20 000. The fair value of the asset is R27 000.The entity has determined the fair value less costs to sell of the asset as R26 000 and the value inuse as R32 000.Required:Explain how you would calculate the carrying value of the asset and at what value the asset shouldbe presented at in the financial statements.In a like - kind exchange, Greyland exchanged investment - use real property (FMV $210,000, adjusted basis $190,000) for a smaller piece of investment - use property (FMV $200,000) plus $10,000. They will report a $10,000 gain on the exchange. What is their basis in the replacement property? $170,000 $180,000 $190,000 $200,000Employer purchased a residential property on installment basis and had the same used by its managerial employee as residence. The total acquisition cost of the property is P3,500,000 including P500,000 interest. The property has a current fair value of P4M.Compute the quarterly monetary value of the fringe benefit. * O P18,750 O P37,500 P50,000 O P75,000
- On December 31, 2020, IVORYInc.’s investment in real property has a carrying value of P10,000,000 accounted for under the fair value model, before considering market value adjustment. The fair market value of the asset on December 31, 2020, is P6,500,000. How much should be the gain or loss on changes in fair value?An entity owns two investment properties, X and Y, the fair values of which are: 31 December 2006 31 December 2007 Property X 15,000,000 20,000,000 Property Y 10,000,000 8,000,000 The original cost of the properties was 9 million each when they were acquired on 1 January 2005. Both have an estimated useful life of 10 years. The entity uses the fair value model to value all its investment properties. Required: a.) Compute for the total amount recognized in December 31, 2007 statement of profit or loss. b.) Compute for the total amount recognized in December 31, 2007 statement of financial position. c.) Provide the adjusting entry on December 31, 2007.The Philippine government grants a huge parcel of land in Cordillera to an entity. The land has a fair market value of P50,000,000. According to the terms of the award, the company must build a factory and hire solely Cordillera residents. The factory costs P80,000,000 and has a 25-year usable life. What is the net effect in the profit or loss for the year as a result of the transaction?