FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What amount of gain or loss should be recognized for 2020 regarding the disposal of the property? Angel Company purchased an investment property on January

What amount of gain or loss should be recognized for 2020 regarding the disposal of the property?


Angel Company purchased an investment property on January 1, 2018 for P3500000. The property had a useful life of 50 years and on December 31, 2020 had a fair value of P5300000. On December 31, 2020, the property was sold for net proceeds of P 6,000,000. The entity used the cost model to account for the investment property.

Step by Step Solution

★★★★★

3.45 Rating (164 Votes )

There are 3 Steps involved in it

Step: 1

Since the entity used the cost model to account for the investment property ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities

South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities

Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen

20th Edition

978-0357109144, 978-0357686652, 978-1305874824

More Books

Students also viewed these Accounting questions

Question

★★★★★
Multiple Choice Questions 1. Candy Corp. is a C corporation that began operations in year 1. Candy Corp.'s year 1 through year 3 taxable earnings and profits (E & P) are computed as follows. Year E &...

Answered: 1 week ago

Question

★★★★★
The following information was obtained in relation to the audit of the Investment Account of Domantas Company: Domantas Company has a single investment obtained on 1 January 2021 and it is a 5-year...

Answered: 1 week ago

Question

★★★★★
What amount in profit or loss should be recognized in 2022 as result of the reclassification? On January 1, 2020, Plain Company purchased 6% bonds in the face amount of P100,000. The bonds mature on...

Answered: 1 week ago

Question

★★★★★
As our energy structure transitions toward renewable fuels, forest-based biomass fuels benefit from this transition. What are the likely effects of this transition on consumers, producers, and the...

Answered: 1 week ago

Question

★★★★★
1. What are the signs (symptoms) of conflict in this case? 2. Use the conflict model to (a) identify the structural causes of conflict and (b) discuss the escalation of conflict described in this...

Answered: 1 week ago

Question

★★★★★
Suppose that a U.S. adult is selected at random. What do you expect for the conditional probability that the adult is a male, given that he or she is a member of Congress? A. Close to zero B. Close...

Answered: 1 week ago

Question

★★★★★
Procrastination Choose one task you have been putting offanything from putting away laundry to following up on a job interview. Either today or tomorrow, spend 15 minutes working on this task....

Answered: 1 week ago

Question

★★★★★
The following transactions and events affected a Special Revenue Fund of Stem Independent School District during 20X4. 1. The chief accountant discovered that (a) the $20,000 proceeds of a sale of...

Answered: 1 week ago

Question

★★★★★
On December 1, 2019 Aaron Hillman formed a corporation called Aaron's Accounting Services, Inc. to provide auditing and accounting services for business and personal clients. The newly formed...

Answered: 1 week ago

Question

★★★★★
Grateful Eight Co. is expected to maintain a constant 3.7 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 5.6 percent, what is the required return on the...

Answered: 1 week ago

Question

★★★★★
Historically, which of the following is true of Six Sigma? Derives its name from the six methods of improvement or waste reduction (Sigma), which is a Japanese concept Gets its name from the use of...

Answered: 1 week ago

Question

★★★★★
INP 4203 Final Exam Review Chapter 9 Pay for Performance: Theory and Evidence What is a flexible benefit? What does someone with low self-esteem seek? What is the equity theory? What is distributive...

Answered: 1 week ago

Question

★★★★★
The components of which one of the following calculations seen on an income statement is identical for property-casualty insurers and noninsurers? Available answer options Select only one option A...

Answered: 1 week ago

Question

★★★★★
Question 2 of 3 Liabilities and Fund Balances Current Liabilities Windsor Library Statement of Activities for Year Ended February 28, 2024 Expenses Program Services Circulating library Research...

Answered: 1 week ago

Question

★★★★★
Task 2 You (the learner) appraise the property. Mr Smith is a contractor of construction. Recently 35 employees are working for him. Mr Smith owns 03 road rollers, 01 overhead cranes, 03 excavators...

Answered: 1 week ago

Question

★★★★★
Is or is not.reject or support An education researcher claims that 59% of college students work year-round. In a random sample of 300 college students, 177 say they work year-round. At a = 0.05, is...

Answered: 1 week ago

Question

★★★★★
On Jisnaary 1, 2021, the generat ledger of 30 Family Firevorks includes the following eccount baiances During January 2021, the following transactions accurt Sansary. 2 Provide aervices to cuetoners...

Answered: 1 week ago

Question

★★★★★
Flicker, Inc., a closely held corporation, acquired a passive activity this year. Gross income from operations of the activity was $160,000. Operating expenses, not including depreciation, were...

Answered: 1 week ago

Question

★★★★★
Multiple Choice Questions 1. In general, what is the filing deadline for a C corporation in 2016? a. March 15 b. April 15 c. The 15th day of the 3rd month after year-end d. The 15th day of the 4th...

Answered: 1 week ago

Question

★★★★★
In 2012, Jed James began planting a vineyard. The costs of the land preparation, labor, rootstock, and planting were capitalized. The land preparation costs do not include any nondepreciable land...

Answered: 1 week ago

Question

★★★★★
Lucy sells her partnership interest, a passive activity, with an adjusted basis of $305,000 for $330,000. In addition, she has current and suspended losses of $28,000 associated with the partnership...

Answered: 1 week ago

Question

★★★★★
At the Boise Cascade Corporation, lumber mill logs arrive by truck and are scaled (measured to determine the number of board feet) before they are dumped into a log pond. Figure C-5.3 illustrates the...

Answered: 1 week ago

Question

★★★★★
Required Tasks: 1. Compute the probability that the sampling plan will provide a result that suggests that SaveMor should reject the deal even if the true proportion of all customers who would switch...

Answered: 1 week ago

Question

★★★★★
Assume that a random variable is normally distributed with a mean of 1,500 and a variance of 324. a. What is the probability that a randomly selected value will be greater than 1,550? b. What is the...

Answered: 1 week ago

Previous Question Next Question