J Co. (a Canadian-controlled private corporation) had a Class 8 UCC balance of $10,000 at the end of 2022. In 2023, J Co. purchased a Class 8 asset for $50,000 to be used by the business immediately. What is J Co.'s maximum CCA for 2023? Multiple Choice $12,000 $17,000 $60,000 $52,000
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- On October 7, 2020, Grace Gems purchased a basket of assets for the lump-sum price of $150,000. The fair market values of the assets Grace purchased were as follows: U.S. government securities $10,000 Land 36,000 Building 90,000 Equipment 15,000 Furniture 9,000 What is Grace's basis in the building? $84,375 $90,000 $105,000 $114,000Q5. PK Ltd acquires a block of land on 1 January 2017 for $200 000 in cash. Due to increased housing demand in the area, the land has a fair value of $290 000 on 1 January 2018.However, the market value falls to $140 000 on 30 June 2019. Write the journal entries needed.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 $10,400
- On 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 - ₱ 50,000On January 1, 2024, Jackson purchased ABC Company for $900,000. At the time, ABC Company had assets with a market value of $320,000 and liabilities with a market value of $100,000. What is the amount of goodwill Jackson should report on January 1, 2024? O $220,000 $480.000 $680,000 O $420,000A company resident in Trinidad and Tobago purchased the following assets in 2022:Asset Cost $ USDHonda Motor car purchased in May 2022 38,000Heavy Equipment 50,000Computer (CPU) 4,000Factory Buildings 72,000i. What would be the difference in capital allowances for 2023 if this company wasresident in Jamaica instead of Trinidad and Tobago.ii. State two reasons for the difference. iii. Explain two circumstances in which obtaining capital allowances on the reducing balancebasis may be more beneficial than on the straight-line basis.
- On October 1, 2024, a company purchased a piece of land by agreeing to pay the seller $450,000 in two years. If the company had borrowed the money from a bank to pay the seller immediately, management estimates the bank would have required interest of 9% For what amount should the company record the land on the date of purchase (rounded to the nearest dollar)? (PV of $1. and PVA of $1) Multiple Choice O O $450,000 $369.000 $412,844 $378,75622 On January 1, 2022, Estrime Company purchases an investment property at a cost of P50,000,000 including transaction costs. On October 1, 2022, the fair value of property increases to P51,000,000. At December 31, 2022 the fair value of property is P47,000,000. The rental income received per quarter is P1,550,000. The property has a useful life of 50 years. If the company uses the cost model, what is the net effect on the profit or loss for the year ended December 31, 2022 in relation to the investment property? If the company uses the fair value model, what is the net effect on the profit or loss for the six months ended December 31, 2022 in relation to the investment property?5. Use the following information for the next three (3) questions: On July 1, 2021 Captain Universe Company declared as property dividends 10,000 shares held as investment in associate with carrying amount of P4,000,000. Cost of disposal is immaterial. Information on fair values is shown below: Date Fair Value July 1, 2021 P3,200,000 December 31, 2021 4,400,000 February 1, 2022 3,800,000 Questions: The entries on July 1, 2021 include all of the following except Group of answer choices A debit to retained earnings for P3,200,000 A debit to impairment loss for P800,000 A debit to non current asset held for disposal to owners for P4,000,000 A credit to property dividends payable for P3,200,000
- San Jose Realty Corporation acquired a tract of land on January 1, 2020 for P20 million. Transaction costs paid San Jose relating to its acquisition amounted to P800.000 The tract of land was subdivided into 400 residential lots having an area of 200 square meters each, after making provision for public and common roads, incurring additional cost of P6,200,000. At December 31, 2021, the market value per lot was P250,000.Compute the charitable contribution deduction (ignoring the percentage limitation) for each of the following C corporations. If required, round your answers to nearest dollar. a. Amber Corporation donated inventory of clothing (basis of $128,500, fair market value of $160,625) to a qualified charitable organization that operates homeless shelters. XAn asset bought for R2 million in 2020 with a useful life of four years, depreciated by way of the straight-line method over four years, is sold for R1 million in 2023 (3 years after being taken into use). What would the net proceeds from the sale be? (Assume a tax rate of 27%.) O a. R500 000 O b. R865 000 c. R1 000 000 O d. R1 500 000