In 2018 an asset was purchased for $2,000,000. The asset qualified for Initial Allowance. The Initial Allowance (I.A) Rate was 20%. Annual Allowance (A.A) Rate was 10%. The asset was sold in 2020 for $1,000,000. Capital allowance is on the reducing balance basis. The balancing adjustment is: a.A Balancing Charge b.A Balancing Allowance

In 2018 an asset was purchased for $2,000,000. The asset qualified for Initial Allowance. The Initial Allowance (I.A) Rate was 20%. Annual Allowance (A.A) Rate was 10%. The asset was sold in 2020 for $1,000,000. Capital allowance is on the reducing balance basis. The balancing adjustment is: a.A Balancing Charge b.A Balancing Allowance

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 5MC: On May 1, 2019, a company purchased a new machine that it does not have to pay for until May 1,...

See similar textbooks

Similar questions

In 2018 an asset was purchased for $2,000,000. The asset qualified for Initial Allowance. The Initial Allowance (I.A) Rate was 20%. Annual Allowance (A.A) Rate was 10%. The asset was sold in 2020 for $1,000,000. Capital allowance is on the reducing balance basis. Calculate the balancing adjustment.
In 2018 an asset was purchased for $2,000,000. Initial Allowance (I.A) Rate was 20%. Annual Allowance (A.A) Rate was 10%. The asset was sold in 2020 for $1,000,000. Capital allowance is on the reducing balance basis. The balancing adjustment is:
In 2018 an asset was purchased for $2,000,000. Initial Allowance (I.A) Rate was 20%. Annual Allowance (A.A) Rate was 10%. The asset was sold in 2020 for $1,000,000. Capital allowance is on the reducing balance basis. The balancing adjustment is: a. $200,000 b. $260,000 c. $740,000 d. $134,000
In 2018 an asset was purchased for $8,000,000. It was not eligible for initial allowance. annual allowance rate was 10%. The asset was sold in 2022 for $8,500,000. Capital allowance is on the straight-line basis. The balancing adjustment is: a. $3,700,000 b. $4,500,000 c. $4,000,000 d. $3,200,000
Prepare the amortization table for 2025, assuming that amortization is recorded on interest payment dates using the effective-interest method. (Round answers to 0 decimal places, e.g. 25,000.) Date Cash Expense Amortization Carrying Amount 1/1/25 $enter a dollar amount 6/30/25 $enter a dollar amount $enter a dollar amount $enter a dollar amount enter a dollar amount 12/31/25 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount
For the next 3 questions.. What amount should be recognized as pretax revaluation surplus on January 1, 2019? A. 125,000,000 B. 385,000,000 C. 105,000,000 D. 315,000,000 What amount should be recorded as depreciation for 2019? A. 15,000,000 B. 27,500,000 C. 22,500,000 D. 15,750,000 What amount should be reported as pretax revaluation surplus on December 31, 2019? A. 125,000,000 B. 117,500,000 C. 119,750,000 D. 105,000,000
The Slow company has started the construction of an asset on September 1, 2019and finished it on November 1, 2020. The weighted average expenditure ascalculated at the end of the construction in 2020 was: $725,456. In 2020, thecomp had the following outstanding indirect debts:DebtOne-year loan payable taken out on March 31, 2019Two-year note payable Faken out on June 1, 2020Amount$67,000$120,000Annual rate5%7%Assuming there is no direct debt related to this construction, the interest that will becapitalized on indirect debt in 2020 is (calculate ratios to 2 decimal places):a) $47,980b) $45,130Oc) $7,133d) $5,737
Acruni Co. had the following loans in place at the beginning of 2019. 1 January 2019 GHC m 10% Bank loan repayable 2020 9.5% Bank loan repayable 2021 8.9% debenture repayable 2024 120 80 100 On 1 January 2019, Acruni Co began construction of a qualifying asset, a piece of machinery for a hydroelectric plant, using existing borrowings. Expenditure drawn down for the construction was GHC30 million on 1 January 2019, and GHC20 million on 1 October 2019. Surplus funds were invested temporarily at a rate of 2%. Required a) Calculate the borrowing costs that can be capitalized for the piece of machinery. b) Compute the cost of the machinery that will be reported in the statement of financial position as at December, 2019 ATES)
*attached is the problem REQUIRED: choose the letter What is the interest expense for 2020? a. 200,000b. 115,200c. 106,720d. 0 What is the depreciation for 2020? a. 135,200b. 115,200c. 67,600d. 20,000
Problem1: A sum of ₱ 35,000 is invested from March 8,2019 to December 5,2019, at 18 ½ % Simple Interest. Find the interest earned using the four methods
The prepaid rent is P12,000 good for three months starting November 30, 2020. The balance sheet date is December 31, 2020. The prepayment was recorded under asset method. The correct expense for the given period would be:
please all parts Find the following accumulated values on December 31, 2020 a) $6000 invested on May 1, 2020 at 3.6% interest. b) $20,000 invested on January 1, 2018 if &t = 0.025 + 0.02t. (c) $15,000 invested at ireal=3.25% on January 1, 2020 if inflation in 2020 is 1.75% d) Payments of $5,000 made every December 31 from 2014 to 2020 at 5% interest.