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- Aqua Corporation purchases nonresidential real property on May 8, 2020, for S1, 630, 000. Straight - line cost recovery is taken in the amount of $163, 000 before the property is sold on November 27, 2023, for S2, 445,000.a. Compute the amount of Aqua's recognized gain on the sale of the realty.b. Determine the amount of the recognized gain that is treated as § 1231 gain and the amount that is treated as § 1250 recapture (ordinary income due to § 291). § 1231 gain:§ 1250 recapture (ordinary income due to §On January 1, 2019, Intimate Corporation purchased land at a cost of P7,200,000. The entity used the revaluation model for this asset. The fair value of the land was P8,400,000 on December 31, 2019 and P10,200,000 on December 31, 2020. On July 1, 2021, the entity decided to sell the land and therefore classified the asset as held for sale. The fair value of the land on this date is P9,120,000. The estimated cost of disposal is almost zero. On December 31, 2021, the land was sold for P9,600,000. What amount of OCI should be recognized in the statement of comprehensive income for the year ended December 31, 2020? ₱480,000 ₱3,000,000 ₱1,080,000 ₱1,800,000 What amount of gain or loss on sale of land is recognized in 2021? ₱480,000 gain ₱2,400,000 gain ₱600,000 loss ₱1,200,000 gain What amount of OCI is transferred…Grand Champion Inc. purchased America’s Sweethearts Corporation On January 1, 2019. At the time, America’s Sweethearts had the following assets and liabilities (stated at fair value):
- On January 1, 2019, ABC Company purchased land at a cost of P 6M. the entity used the revaluation model for this asset. The fair value of the land was P 7M on December 31, 2019 and P 8.5M on December 31, 2020. On July 1, 2021, the entity decided to sell the land and therefore classified the asset as held for sale. The fair value of the land on this date is P 9.6M. The estimated cost of disposal is P 300,000.On December 31, 2021, the land was sold for P 8M. How much is the net impact of the land held for sale on 2021 income statement? (indicate negative sign if loss)During 2021, Van Industries exchanges land with Frat Corporation. Van’s adjusted basis in land is $740,000 and the land Frat provides has a fair market value of $700,000 and an adjusted basis of $660,000. a. What are the realized and recognized gains to Van? b. If Frat also pays $80,000 cash to Van, what are the realized and recognized gains to Vans? What is Van’s basis in the acquired land? Will you please show the work I am lost on this one. Thanks! c. If Form it instead assumes a $100,000 recourse loan on Vee’s land, what are the realized and recognized gains to Vee? What is Vee’s basis in the acquired land?Globe Company, a real estate developer, is owned by five founding shareholders.On December 1, 2019, the entity declared a property dividend of a "one-bedroom flat" for each shareholder. The property dividend is payable on January 31, 2020.On December 1, 2019, the carrying amount of a one-bedroom flat is P1,000,000 and the fair value is P1,500,000.However, the fair values is P1,800,000 on December 31, 2019 and P1,900,000 and January 31, 2020. 1. What amount should be recorded as dividend payable on December 1, 2019? 2. What amount should be reported as dividend payable on December 31, 2019?
- 1.) On April, 2021, Queen Corporation paid P800,000 for the assets a liabilities of Jack Company. The book value of assets and liabilities of Jack Company on April 1, 2021. follow: (20pts) Cash 80,000 Inventory Plant and Equioment (net of accumulated depreciation of P320,000) 240,000 480,000 180,000 Liabilities On April 1, 2021, it was determined that the inventory of Jack had a fair value of 190,000 and the plant and equipment (net) had a fair value of 560,000. Question: Compute for the amount of goodwill resulting from the Business Combination? 2) On May 31 2021 Dear Company has assets and liabilities with the following fair values:Aqua Corporation purchases nonresidential real property on May 8, 2018, for $2,080,000. Straight-line cost recovery is taken in the amount of $208,000 before the property is sold on November 27, 2021, for $3,120,000. a. Compute the amount of Aqua's recognized gain on the sale of the realty. b. Determine the amount of the recognized gain that is treated as 5 1231 gain and the amount that is treated as 5 1250 recapture (ordinary income due to § 291). § 1231 gain: § 1250 recapture (ordinary income due to § 291):Xavier Corporation begins business on March 1, 2021. The corporation incurs start-up expenditures of $38,000. Round your final answers to the nearest dollar. a. If Xavier elects amortization under § 195, the total start-up expenditures that Xavier may deduct in 2021 is b. Assume the same facts except the start-up costs totaled $52,000.The total start-up expenditures that Xavier may deduct in 2021 is
- During 2021, Carla Vista Company purchased the net assets of Sandhill Corporation for $2219800. On the date of the transaction, Sandhill had $605400 of liabilities. The fair value of Sandhill's assets when acquired were as follows: Current assets $1089720 Noncurrent assets 2542680 $3632400 How should the $807200 difference between the fair value of the net assets acquired ($3027000) and the cost ($2219800) be accounted for by Carla Vista?On December 1, 2021, CAF Corporation declared equipment as a property dividend payable on January 15, 2021. The carrying amount of the equipment is P350,000, which approximates its fair value. The fair values of the equipment on December 31, 2021, and January 15, 2022 are P400,000 and P390,000, respectively. What is the balance of property dividends payable on December 31, 2021?On July 16, 2019 Logan acquires land and a building for $500,000 to use in his sole proprietorship. Of this purchase price 400,000 is allocated to the building and 100,000 is allocated to the land. Cost recovery of 4708 is deducted for the building (nonresidential real estate) what is the adjusted basis for the land and the building at the acquisition date? land? building? what is the adjusted basis for the land and the building at the end of 2019? land? building?