Question
Evaluate the impact of the following errors on the financial statements for the year ended 31.12.20X3, the corporate income tax rate is 20%: 1. The
Evaluate the impact of the following errors on the financial statements for the year ended 31.12.20X3, the corporate income tax rate is 20%: 1. The enterprise liquidated fixed assets used for sale at their original cost of VND 240,000,000 (depreciated at VND 220,000,000) in February, 20X3, but not yet recorded a decrease in fixed assets, but continued to calculate depreciation. The depreciation rate of this asset is 10%/year. The proceeds from the sale of this property are VND11,000,000 (this price includes 10% value added tax). Accountants record entries after selling fixed assets: Debt: 11,000,000 Cr Administration expenses: 10,000,000 Cr VAT: 1,000,000. 2. Construction work warehouse worth 900,000,000 VND was completed and transferred to fixed assets in February 20X3. The test results show: - The company did not capitalized the interest expense in the value of warehouse of VND 60,000,000. The company has recorded in financial expenses in the period. - The consulting and design costs of ACD Company has not been capitalized in the value of the Warehouse which is 42,000,000 VND (Price paid and not deductible value added tax). An advance for ACD of VND 30,000,000 is still "hanging" as an advance payment to the supplier. - This fixed asset has a depreciation rate of 6% per annum, which is included in administrative expenses.
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