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10-14 Financial Accounting. Please answer all ASAP. Thank you. 10. On January 1, 2030, TAILLON INC. buys machinery at a cost of $100,000. It is
10-14 Financial Accounting. Please answer all ASAP. Thank you.
10. On January 1, 2030, TAILLON INC. buys machinery at a cost of $100,000. It is estimated that the residual value will be $10,000 and the useful life will be 5 years. The company uses the straight-line method of depreciation. On July 1, 2034, TAILLON INC. sells this machinery for $25,000. After the sale, he is informed that the machinery could have been sold for $29,200 but would require the payment of $2,000 to a broker to finalize the transaction. The company's fiscal year end is September 30. Following the disposal of the machinery, calculate the gain or loss on disposal.
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depreciable amount |
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Accumulated amortization as of July 1, 2034 |
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Profit or loss on disposal |
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11. According to the IASB's March 2018 Conceptual Framework for Financial Reporting, an item of property, plant and equipment is an asset: a) that is purchased by the company and will be used for a long period of time. b) which is controlled by the enterprise as a result of past events and from which the economic benefits are expected by the entity. c) which is purchased by the enterprise as a result of past events and from which the economic benefits are expected by the entity. d) which is purchased by the enterprise in the course of its production activities. e) None of the above. 12. According to the accounting standard IAS 23 Borrowing costs, the company recognizes the borrowing costs relating to the building: a) to the building account when it undertakes activities essential to the preparation of this asset. b) as an expense during the period when the interest is paid. c) to the "building" account or to the expense account according to the company's choice. d) to the building account when it incurs expenses for this asset, borrowing costs and undertakes activities essential to the preparation of the asset prior to its use or sale. e) None of the above. 13. On January 1, 2027, ERASM, INC. buys machinery for $800,000. On the purchase price, the company is entitled to a discount of 8%. She must have this machinery delivered to her factory at a cost of $9,000. The initial installation fee is $4,500 and the cost of functional testing is $1,500. Once the machinery started producing, the company incurred relocation costs of $6,000. Calculate the amount that will be debited from the machinery account.
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Total cost of machine |
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14. As of December 31, 2029, the company ENTIM, S.A. has a building whose cost is $2,000,000 and the accumulated depreciation is $580,000. At that date, its fair value is $2,440,000. The company uses the revaluation model for its fixed assets and it uses the net adjustment method when revaluing. Calculate the revaluation surplus presented in the statement of financial position as at December 31, 2029. Answer #14:
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Just value |
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Rvaluation |
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