If depreciable equipment is sold at a gain,
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A: Hi student Since there are multiple questions, we will answer only first question.
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A: Recognizing R&D costs, Expense the entire costs, unless the items have alternative future uses…
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Q: If the value implied by the purchase price of an acquired company exceeds the fair values of…
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Q: Under what conditions is it appropriate for a businessto use the composite method of depreciation…
A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…
Q: When nonmonetary assets are exchanged, a company records the cost of the nonmonetary asset acquired…
A: When a non monetary assets is exchanged for another non monetary assets. Asset shall be organised.…
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A: Capital gain is realized from the sale of fixed assets.
Q: If an entity capitalized transaction costs to a financial asset at fair value through profit or…
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Q: Which of the following is not an ordinary gain? * A. Gain on the sale of inventories B. Gain of…
A: Correct option is C. Gain on the sale of company warehouse. Gain on sale of company warehouse is…
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Q: When nonmonetary assets are exchanged, a company records the cost of the nonmonetary asset acquired…
A: The cost of the nonmonetary asset acquired will be explained:
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A: Depreciable assets are those fixed assets on which depreciation is charged over the years and net…
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Q: ntangible assets can only be measured using the revaluation model if the acquiring entity:
A: The Answer:
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A: Solution:- A gain or loss on the sale of a plant asset is determined as follows under:-
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A: Depreciation is an outlay which is being recorded in the books due to the fall in the asset's worth.…
Q: Loss on sale of plant and machinery should be written off against: Depreciation fund account O Sales…
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Q: The following are properly classified as capital expenditure, except:
A: Capital expenditure is the amount spent by the business to acquire ,…
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A: The answer for the multiple choice question and relevant explanation are presented hereunder :…
If depreciable equipment is sold at a gain, this transaction will appear
- the investing activities section only.
- the financing activities section only.
- both the operating activities and the investing activities sections.
- both the operating activities and financing activities sections.
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- Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers to the process of converting assets to expenses. B. Only the purchase price of the asset is capitalized. C. Capitalizing a cost means to record it as an asset. D. Capitalizing costs results in an immediate decrease in net income.The following are properly classified as capital expenditure, except: a. Expenses to promote business goodwill b. Acquisition of intangibles c. Rentals under a “Lease-to-Own” agreement d. None of the above_______ 1. Financial assets at amortized cost shall be measured at fair value through profit or loss. _______ 2. Transaction costs include fees and commission paid to agent, levies by regulating authorities, transfer taxes and duties. _______ 3. As a rule, transaction costs that are directly attributable to the acquisition of a financial asset should be capitalized as cost of the financial asset. _______ 4. Financial assets held for trading are reported at cost. _______ 5. The stockholder theoretically realized income from dividend at the data of record. _______ 6. As investee is an entity over which the investor has significant influence. _______ 7. Trading bond investment are reported at face amount. _______ 8. A gain or loss on sale of trading bond investment is the difference between sale price and fair value. _______ 9. The interest rate written on the face of the bond is known as nominal rate. _______ 10. Major spare part and standby equipment which are expected to be used…
- True or False _______ 1. Financial assets at amortized cost shall be measured at fair value through profit or loss. _______ 2. Transaction costs include fees and commission paid to agent, levies by regulating authorities, transfer taxes and duties. _______ 3. As a rule, transaction costs that are directly attributable to the acquisition of a financial asset should be capitalized as cost of the financial asset. _______ 4. Financial assets held for trading are reported at cost. _______ 5. The stockholder theoretically realized income from dividend at the data of record. _______ 6. As investee is an entity over which the investor has significant influence. _______ 7. Trading bond investment are reported at face amount. _______ 8. A gain or loss on sale of trading bond investment is the difference between sale price and fair value. _______ 9. The interest rate written on the face of the bond is known as nominal rate. _______ 10. Major spare part and standby equipment which are expected…Under PFRS 9, a financial asset shall be measured subsequently at amortized cost when: I. The business model of the entity is to hold the financial asset in order to collect contractual cash flows on specifies dates. II. The contractual cash flows are solely payment of principal and interest on the principal amount outstanding. O Il only Both I anf II O Either I orll O lonly NextIn an acquisition of assets, the acquirer must give up which of the following? A. Other Assets B. Cash C. Liability D. Any of the given
- When nonmonetary assets are exchanged, a company records the cost of the nonmonetary asset acquired at:Under what conditions is it appropriate for a businessto use the composite method of depreciation for itsplant assets? What are the advantages and disadvantagesof this method?The profit or loss section or the statement of profit or loss shall include the following line items, except A. A single amount for the total of discontinued operations B. Gains and losses on distribution of non-cash assets to owners. C. Impairment losses (including reversals of impairment losses or impairment gains) determined in accordance with PAS 36. D. Revenue, presenting separately interest revenue calculated using the effective interest method
- These include both tangible assets such as (b) and intangible assets such as (c). To pay for these assets, they sell (d) assets such as (e). The decision about ...An entity starts the capitalization of borrowing costs to the cost of a qualifying asset when * A. Expenditures for the asset are being incurred. B. Borrowing costs are being incurred. C. Activities necessary to prepare that asset for its intended use or sale are being undertaken. D. All of the above conditions are met.One of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant & equipment subsequent to initial recognition. Read IAS 16 and answer the following questions. Provide a list of the references you have used to search this topic. 1) What are the accounting models accepted under IFRS for the measurement of property, plant & equipment subsequent to initial recognition? 2) How often should the company revalue its property, plant & equipment under the revaluation model? 3) How should the revaluation gains and losses be accounted for and reported in the financial statements? 4) How should any claim for compensation from third parties for impairment be accounted for? 5) How should the recoverability of the carrying amount of property, plant & equipment be accounted for?
