year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) c. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were increased to $60,000? Total Gain/Loss Recognized Character of Recognized Gain/
Q: ABC Company on March 1 acquired 8,000 shares of XYZ Company at a price of $165,000 paid per cash. Ea...
A: A consolidated balance sheet is a statement that shows the financial position of a parent company on...
Q: BE5-3 Prepare the journal entries to record the following transactions on Graff Com- pany's books us...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: ulation of earnings available for common stockholders divided by common stock equity?
A: Shareholder Equity is the sum of Share capital and Shareholder funds ( Reserves and Surplus) . So it...
Q: Interpreting Information in the Statement of Shareholders' Equity The 2014 statement of stockholders...
A: Treasury Stock- The Treasury stock is also known as shareholder's reclaimed stock, which refers to s...
Q: A tractor for over-the-road hauling is purchased for $105,000.00. It is expected to be of use to the...
A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life
Q: Units-of-Production Method A light truck is purchased on January 1 at a cost of $35,000. It is expec...
A: Under units of production method, depreciation expense per unit is calculated by dividing depreciabl...
Q: Vhich of the following statements is the most reasonable conclusion from the given formation below o...
A: Solution Concept Return on equity is given as =net profit/total equity Working note ROE of ABC compa...
Q: What are the company's Liabilities here? O $447,600 O $96,000 O $306.000 O $264,600
A: Liabilities refers to the obligation on any individual or a company to pay the amount borrowed from ...
Q: Required Information Use the following information for the Exercises below. [The following informati...
A: Lets understand the basics. Depreciation is reduction in value of asset due to wear and tear, techno...
Q: ABC Corporation sells just one product. At the end of fiscal year 2017, ABC applies the lower-of-cos...
A: Writing down the value of inventory by $300 decreases the value of total assets by $300 and the valu...
Q: Beginning inventory, purchases, and sales for Item Doodad are as follows: July 1 Inventory 90 uni...
A: Inventory is a stock that the company has held for the resale purpose or the goods that are not sold...
Q: Yel Co. has a bonus agreement which provides that the general manger shall receive an annual bonus o...
A: Solution.. Manager bonus = P280,000 Manager bonus = 10% of income after bonus and tax
Q: Explain why bonds are issued and identify the types of bonds?
A: Bonds are one method for corporations to generate funds. The investor undertakes to contribute the c...
Q: On January 1, 2019, Pharoah Inc., a construction company, leased an excavator from Leaselt Inc. The ...
A: The right of use asset is calculated as present value of annual lease payments and residual value at...
Q: Is it possible to fully eliminate non-value added activities? If yes, how? If no, why?
A: Value can simply be defined as something which the customer is willing to pay or receive. Non Value ...
Q: Bankers usually insist that prospective borrowerssubmit audited financial statements along with a lo...
A: CPA or the Certified Public Accountant is the individual that has authority to investigate and audit...
Q: Overheads applied are calculated by: a.OAR times the estimated cost driver activity b. Budgeted pro...
A: Overhead is applied on the actual cost driver at the rate based on the estimated overhead and estima...
Q: Accounting Jeff Andringa, a former university hockey player, started Ice Camp Ltd., a hockey camp fo...
A: Ledger The preparation of ledger to understand the ending balance of the each account which are inv...
Q: Which of the following statements is incorrect concerning the adjusted trial balance? A. THE A...
A: Adjusted Trial Balance: An adjusted trial balance is used after all of the modifications have been m...
Q: Current statements for Millie Company reveal the following: beginning and ending inventory balance ...
A: Lets understand the basics. Days sales in inventory ratio indicates the average time in days that co...
Q: Which of the following statements is the most reasonable conclusion from the given information below...
A: Quick ratio is a popular liquidity ratio. This ratio is also known as acid test ratio. This along wi...
Q: 0.15 0.05 001 -0.03 -0.01 0.09 the expected returns of the two stocks? the standard deviations of th...
A: The term expected return of stock refers to the profit or loss amount which investor anticipates on ...
Q: Rafael sold an asset to Jamal. What is Rafael's amount realized on the sale in each of the following...
A: Rafael's amount realized on the sale will be equal to Cash & fair value of assets minus obligati...
Q: Strand Inc. provides an incentives compensation plan under which its president receives a bonus equa...
A: Bonus = (Income before tax and bonus - Bonus - P600,000 ) x bonus % Let, Bonus = a
Q: Discuss the Legislative Authority of VAT in Trinidad and Tobago
A: Tax Revenue: Tax revenue is the pay acquired by the public authorities through tax collection. The b...
Q: The F Company uses the allowance method is used to account for uncollectible receivables. It had the...
A: Receivables, loans, and other obligations that are likely to be paid are referred to as uncollectibl...
Q: In a business, who is responsible for setting standard costs, and who is responsible if there are ne...
A: A good system of standard costing ensures that the right staff are both rewarded and blamed when the...
Q: Vertical Analysis of Balance Sheets Consolidated balance sheets for Winged Manufacturing follow. ...
A: In preparing common size balance sheet for vertical analysis, each item is represented as a percenta...
Q: Last year, which is used as the base year, a firm had cash of P46, accounts receivable of P132, inve...
A: The common–base year Value can be calculated by dividing each current year item amount by the base-y...
Q: How can sales clerks employed at Ramona's Clothing use the store's return policy to steal money from...
A: as the both question are different as per the guidelines we can provide answer for 1 question ( firs...
Q: On July 1, 2021, Harvest, Inc., acquires 60 percent of Patricia Company for $360,000. The remaining ...
A: Introduction goodwill is considered as intangible assets that is linked with purchasing of one compa...
Q: In times of inflation (normal), the LIFO inventory method has ……………….. compared to FIFO: a) H...
A: >Cost flow from units purchased to Cost of goods sold can be done using either of the 4 methods: ...
Q: t the end of November 2016, Caribbean Productions Ltd had 700 units of product BMR400 in store. For ...
A: Contribution margin per unit is the excess of the sales price per unit over variable cost per unit.
Q: sp Corporation has one temporary difference at the end of 2020 that will reverse and causedeductible...
A: Temporary difference is the difference between pretax financial income and the taxable income that w...
Q: Share Repurchases. Your company has the following Stockholders”’ Equity as of the beginning of the ...
A: If the company accounts for repurchased shares by retiring them STOCKHOLDERS' EQUITY SECTION Common...
Q: The balance in the supplies account on June 1 was $5230, supplies purchased during June were $3480, ...
A: Lets understand the basics. Adjusting entry is needs to pass to record correct amount of revenue and...
Q: The expected total capital budget for the year is? 2. Assuming the company has 200,000 ordinary sha...
A: Dividend per share is the dividend amount which has been paid by the company to the one per share wh...
Q: COMPUTE FOR DAY SALES OUTSTANDING RATIO GIVEN ASSETS Current Assets Cash and cash e...
A: The average number of days taken by a corporation to obtain payment for a sale is called days sales ...
Q: Rerun Manufacturing Company is in the process of preparing its 2020 budget and is anticipating the f...
A: Cost of goods sold includes: Direct material Direct labor Manufacturing Overhead Indirect costs s...
Q: What is an unrecognized tax benefit and how does it affect a company's current income tax expense?
A: The Meaning of Income Tax: FASB defines income tax as a tax on earnings. It is measured in terms of ...
Q: XYZ plc manufactures a single product. Data relating to this figure is as follows: Selling price per...
A: when contribution margin method is followed the variable cost are deducted from sales to arrive at c...
Q: On January 1, 20x5, Paz acquired 80% of Shey outstanding ordinary shares for P950,000. Paz uses the ...
A: While preparing the consolidated balance sheet, the total assets of the acquired and acquirer compan...
Q: List five social variables and the attributes theycomprise.
A: Variables refers to the set of the attributes in a logical manner. And it is the value that is likel...
Q: A company sells three different products.The following inventory information is available on Decembe...
A: Inventory - Inventory is the value of assets held by the company not sold during the year. It is the...
Q: As manager of the St. Cloud Theatre Company, you have decided that concession sales will support the...
A: \Given below is the information of the question: SOFT DRINK WINE COFFEE CANDY Selling price 1...
Q: Depletion Prepare the following entries using a general journal: 1. A coal mine was acquired at a co...
A: journal entry for deletion expenses are as follows
Q: At the beginning of the year, Anna began a calendar-year business and placed in service the followin...
A: Cost recovery is the process of subtracting a portion of the cost of an item used in a business or t...
Q: Galvanized Products is considering the purchase of a new computer system for their enterprise data m...
A: In this question firm wants to buy a new computer system.It will require an initial investment of $...
Q: A government entity, which is a lessee under a finance lease. recognizes an asset acquired under a f...
A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new q...
Q: QUESTION 22 Match the term on the left with the appropriate definition or description on the left. A...
A: An audit is when an auditor examines or inspects numerous accounting records, accompanied by a physi...
n year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
c. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were increased to $60,000?
Total Gain/Loss Recognized
Character of Recognized Gain/Loss
Ordinary Gain/Loss
1231 gain/loss
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- n year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) d. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were decreased to $20,000?In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a partnership? Total Gain/Loss Recognized Character of Recognized Gain/Loss Ordinary Gain/Loss 1231 gain/Loss3. In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) b. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation? Total Gain/Loss Recognized? Ordinary Gain/Loss? 1231 Gain/Loss?
- 5. In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) d. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were decreased to $20,000? Total Gain/Loss Recognized? Ordinary Gain/Loss? 1231 Gain/Loss?In year 0, Longworth Partnership purchased a machine for $56,000 to use in its business. In year 3, Longworth sold the machine for $36,700. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $29,800. Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable. b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $61,250? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss) Ordinary Gain or (Loss) $1231 gain or (loss) AmountHauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $65,000, and it has claimed $23,000 of depreciation expense against the building. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount.) Required: a. Assuming that Hauswirth receives $50,000 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $50,000, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Hauswirth receives $20,000 in cash in year O and a $50,000 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year O and in year 1.
- Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $65,000, and it has claimed $23,000 of depreciation expense against the building. (Loss amounts should be indicated by a minus sign. Leav no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount.) Required: a. Assuming that Hauswirth receives $50,000 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $50,000, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Hauswirth receives $20,000 in cash in year O and a $50,000 note receivable that is payable in year 1, compute th amount and character of Hauswirth's gain or loss in year O and in year 1. Complete this question by…Hauswirth Corporation sold (or exchanged) a warehouse in year O. Hauswirth bought the warehouse several years ago for $103,500, and it has claimed $41,600 of depreciation expense against the building. Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount. Required: a. Assuming that Hauswirth receives $76,200 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $76,200, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Hauswirth receives $21,000 in cash in year 0 and a $87,000 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year O and in year 1. Complete this…! Required information [The following information applies to the questions displayed below.] In year 0, Longworth Partnership purchased a machine for $64,750 to use in its business. In year 3, Longworth sold the machine for $43,200. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $23,900. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) b. What is the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $67,500? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) $1231 gain/(loss)
- In year 0, Longworth Partnership purchased a machine for $57,250 to use in its business. In year 3, Longworth sold the machine for $44,300. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $24,900. Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable. a. What are the amount and character of the gain or loss Longworth will recognize on the sale? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) $1231 gain or (loss) AmountIn year 0, Longworth Partnership purchased a machine for $53,000 to use in its business. In year 3, Longworth sold the machine for $42,400. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $22,800. Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Problem 3-41 Part-a (Algo) a. What are the amount and character of the gain or loss Longworth will recognize on the sale? b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $61,750?In year 0, Longworth Partnership purchased a machine for $54,500 to use in its business. In year 3, Longworth sold the machine for $36,000. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $26,700. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What is the amount and character of the gain or loss Longworth will recognize on the sale? b. What is the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $65,500?