3. Ignoring income tax, by what amount should shareholders' equity be increased for 2021 and 2022 in current value financial statements?
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- Aber Company buys land for $145,000 in 2021. As of 3/31/22, the land has appreciated in value to $151,000. On 12/31/22, the land has an appraised value of $155,400. By what amount should the Land account be increased in 2022? Group of answer choices $6,000 $4,400 $0 $10,400On December 30, 2021, CHERRY Company paid P2,000,000 for the land. On December 31, 2021, the current value of the land was P2,200,000. In January 2022, the land was sold for P2,250,000. Ignoring income tax, by what amount should shareholders’ equity be increased for 2021 and 2022 in current value financial statements? A. 2021 - ₱ 0; 2022 - ₱ 50,000 B. 2021 - ₱ 200,000; 2022 - ₱ 0 C. 2021 - ₱ 0; 2022 - ₱ 250,000 D. 2021 - ₱ 200,000; 2022 - ₱ 50,000Brackett Corporation had the following transactions in its land account: January 1, 2017 - Purchased $10,000 of land A July 1, 2018 - Purchased $6,000 of land B • October 1, 2020 - Sold one-half of land A for $8,000 December 1, 2020 - Sold all of land B for $4,500 What balance does Brackett have in its land account at December 31, 2020? $3,500 O $5,000 O $6,500 $5,500 None of the above
- A. ACQUISITION COSTS Mr. Ardi acquired land at a cost of Rp4.200.000.000 on April 1, 2019. In addition to this cost, he had to pay the following expenses: a. Commission fee, 2% from the land price, Rp84,000,000 b. Land acquisition tax Rp12,000,000 c. Removal cost of old (unused) building Rp20.500.000. Mr. Ardi received Rp17.000.000 from the sales of salvage materials. d. Rpl10.000.000 to build a fence e. Rp215.000.000 to build a parking lot Instructions: Prepare the journal entries for the above transaction! (4%)On 15 January 2020, Dell & Co. sold land that cost P90,000 for P120,000. The balance of the land account was P700,000 at the beginning of the year and P900,000 at the end of the year. All land acquisitions were paid in cash. What is the amount paid (cash outflow) for the acquisition of land during 2020? P0 P200,000 P290,000 P320,000Adista has land that was purchased in cash on January 2, 2018 at a cost of IDR 1,000,000,000. Requested: a. PT Adista decided to use the revaluation model for the land (which is a fixed asset). On December 31, 2018, the company recognized a revaluation surplus of the land amounting to Rp 100,000,000. If on December 31, 2019 it is known that the fair value of the land is IDR1,060,000,000, make a journal entry recorded by PT Astina regarding the land in 2019. b. Describe how the accounting treatment differs between the fixed asset revaluation model and the fair value model of investment property.
- ABC Company acquired a rice milling machine to be used by farmers for P 900,000 on January 1, 2020. The company received a government grant of P 81,000 in respect of this asset. It is the policy of the entity to depreciate the asset over 4 years on a straight line basis and to treat the grant as deferred income. 1) What should be the carrying amount of the machine as of December 31, 2021? P 409,500 P 675,000 P 450,000 P 490,500 2) What is the deferred income balance at December 31, 2021? P 60,750 P 81,000 P 0 P 40,500 3) What is the realized income from government grants in 2022?? P 81,000 P 40,500 P 60,750 P 20,250Remy Corp uses revaluation method for a class of land. The company purchased theland on 1 July 2018 for $1,000,000. Remy Corp has the following information relatedto the land. The fiscal year of the company ends on 30 June. The company sold land at $1,100,000 on 2 July 2021. Ignore tax effects.Date $ 1 July 2018 1,000,00030 June 2019 1,075,00030 June 2020 925,00030 June 2021 1,025,000 a) AASB 116 “Property, Plant and Equipment” allows business entities to chooseeither the cost model or the revaluation model after recognition as an asset. Explain the advantages and disadvantages of using the revaluation model compared to the cost model for property, plant and equipment. (b) Prepare all journal entries related to the land from 1 July 2018 to 2 July 2021. (c) Determine the amounts to be reported by Remy Corp as at 30 June 2020 and 30 June 2021 for the following items: (i) Land, (ii) Other Comprehensive Income (OCI), (iii) Loss on Revaluation, and…Rover Inc. purchased land for $118,000,000 in 2011. At December 31, 2020, an appraisal determined the fair value of the land is $136,000,0000. If Rover follows the cost principle, the land will be reported on the statement of financial position at O a. $118,000,000. b. $154,000,000. O c. $136,000,000. O d. $100,000,000. Liabilities a. Are things of value used by the business in its operation. b. Are future economic benefits. С. Possess service potential. d. Are existing debts and obligations. IFRS are determined by the a. International Accounting Studies Board. b. International Auditors' Standards Body. c. Internal Accounting Standards Body. d. International Accounting Standards Вoard.
- 9. VIOLET Company acquired an investment property on March 31, 2019 for ₱4,830,000. In addition, ₱210,000 was paid to the local authority as property transfer tax and ₱280,000 paid to professional advisers. The useful life of the property is 40 years. The fair market values of the property on December 31, 2019 and 2020 were ₱5,600,000 and ₱5,400,000 respectively. If the company is using the cost model what amount of investment property should be reported in the December 31, 2020 statement of financial position? * a. ₱ 5,054,000 b. ₱ 5,320,000 c. ₱ 5,400,000 d. ₱ 5,087,250Maroon Company acquired a rice milling machine to be used by farmers for P 900,000 on January 1, 2020. The company received a government grant of P81,000 in respect of this asset. It is the policy of the entity to depreciate the asset over 4 years on a straight Ine basis and to treat the grant as deferred income.QUESTION 1:What should be the carrying amount of the machine as of December 31, 2021?QUESTION 2:What is the deferred income balance at December 31, 2021?QUESTION 3:What is the realized income from government grants in 2022??On January 1, 2022, ABC Company buys three hectares of land for exactly P800,000 with the amount to be paid on December 31, 2024. Interest of 3% will be paid each December 31 although a 10 percent annual rate is viewed as reasonable. Use PV factors rounded to TWO decimal places.On December 31, 2022, at what amount should the company report as the liability for this land? Answer: 701,736 On December 31, 2022, what amount of Discount on Notes Payable should be reported by ABC Company on its Statement of Financial Position? Answer: 98,264 Prepare the journal entry on the payment of interest expense on December 31, 2022. Please kindly show me the solution for these answers please.