In 2021 Pony Company purchased land from its subsidiary, Source Sandals, for $10,000,000. The land had a book value to Source Sandals of $7,000,000. In 2024 Pony Company sells the land to an outside party for $11,000,000.     Required;   a. Prepare the  December 31, 2021 elimination entry needed for this intercompany land sale   b. Prepare the December 31, 2022 elimination entry required for this intercompany land sale   c. Prepare the December 31, 2024 elimination entry required for this intercompany land sale

Q: On November 5, 2020, BLUE Company purchased a land and a building for a lump-sum amount of…

A: Total fair values of the land and building  = ₱1,100,000 + ₱1,650,000 = ₱2,750,000

Q: On July 1, 2018, Apache Company sold a parcel of undeveloped land to a construction company for…

A: The given information is: On July 1, 2018, Apache Company, a real estate developer, sold a parcel of…

Q: On May 7, 2021, Permission to Dance (PTD) Corporation sold a tract of land for P70,000 that resulted…

A: The correct answer for the above mentioned answer is given in the following steps for your…

Q: On January 1, 2020, HOWLSCo. acquired an investment property at a total cost of P25,000,000. At…

A: As per PAS 40" Investment Property" Initial cost of property measured at Cost including transaction…

Q: by BEE last October of 2015 for $1,750,000, and the building was constructed on February of 2016 for…

A: The right answer is option A. Land - $2,200,000; Building - $3,300,000

Q: 0. The estimated useful life of the machine is 10 years, with no residual value. On the date of the…

A: When it is anticipated that a company's potential cash flows will increase as a consequence of a…

Q: On January 1, 2019, GUTZY Corporation purchased a tract of land (site number 101) with a dilapidated…

A: Fixed assets Fixed assets are also known as long-term assets and non-current assets. These are those…

Q: London Company owns a building on January 1, 2020, with a historical cost of P40,000,000. The…

A: The amount of Revaluation will be credited to revaluation reserve and become a part of other…

Q: Red Company sold to another entity a tract of land costing  P5,000,000 for P7,000,000 on January 1,…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years…

A: The fair value of a financial asset is established at the reclassification date when a company…

Q: Presented below are two independent situations. a.   On January 1, 2020, Wright Inc. purchased land…

A: a. Determine the amount of the land should be recorded at January 1, 2020. Calculate the amount of…

Q: On January 1, 2021, Seema an affiliated company sold land that cost $240,000 to its parent, Prime…

A: Journal entries: It is Prepared to record the financial and non-financial transactions of the…

Q: An entity accounted for land using the revaluation model. On October 1, 2020, the entity classified…

A: The assets held for sale are recognized at FV less cost of disposal. Any revaluation gain on…

Q: An entity accounted for land using the revaluation model. On October 1, 2020, the entity classified…

A: Other comprehensive income: Other comprehensive income is the income that includes the revenue,…

Q: During 2020, Parent sells land to Subsidiary for $226,800. The land had a book value of $159,000.…

A: The question is based on the concept of Financial Accounting.

Q: On April 1, 2018, the Apex Corporation sold a parcel of underdeveloped land to the Applegate…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: by issuing 1,000 ₱1,000 8% bonds, currently quoted at 103. Provided that the entity is using the SYD…

A: Depreciation expense refers to the reduction in the cost of a fixed asset due to its use or passage…

Q: On January 1, 2021, Annie Company purchased a mineral mine for P26,400,000 with removable ore…

A: Depletion is the allocation of cost of natural resources that, needs to be allocated over the life…

Q: An entity accounted for land using the revaluation model. On October 1,2020, the entity classified a…

A: Impairment loss is the permanent diminution in the value of asset. it shows the decrease in the fair…

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful lite of 10 years…

A: VALUE OF PROPERTY IMMEDIATELY BEFORE THE CLASSIFICATION AS HELD FOR SALE AS ON 31ST DEC, 2022…

Q: Aqua Corporation purchases nonresidential real property on May 8, 2017, for $1,000,000.…

A: The companies recognize the ordinary income on the sale of the property as 20% of the excess of…

Q: Buttercup Company leased a property to Dickies Corporation on January 1, 2020 for a period of 8…

A: Lease receivable on January 1, 2020 =present value on January 1, 2020 - First payment on January 1,…

Q: Ayala Corporation purchased equipment for P5,000,000 on January 1, 2020 with a useful life of 10…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Bussell Company exchanged the following assets during 2019: Feb. 1 Acquired a newer machine by…

A: When accounting is done on the p[rinciple of commercial substance, the assets value at which the…

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years…

A: Impairment loss is the decrease in the carrying amount of asset to its recoverable amount.…

Q: On January 1, 2019, Intimate Corporation purchased land at a cost of P7,200,000. The entity used the…

A: The question is related to the Non-Current Assets held for sale. The details are given regarding the…

Q: Buttercup Company leased a property to Dickies Corporation on January 1, 2020 for a period of 8…

A: Lease receivable on January 1, 2020 =present value on January 1, 2020 - First payment on January 1,…

Q: PT Adista owns land that was purchased in cash on January 2, 2018 at a cost of IDR 1,000,000,000.…

A: There are two methods for subsequent accounting of the fixed assets; which are, Cost model and the…

Q: On January 1, 2019, ABC Company purchased land at a cost of P 6M. the entity used the revaluation…

A:

Q: On April 30, 2019, Min

A:

Q: On January 1, 2019, GUTZY Corporation purchased a tract of land (site number 101) with a dilapidated…

A: When an asset is purchased, then all the direct costs related to the purchase and placement of that…

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years…

A: We know that Impairment loss can be calculated as follow = Carrying value - Recoverable amount.…

Q: Sadaf Oman Company purchased a land for RO 250,000 in 2010. In October 2020, the company sold this…

A: Financial position refers to the current status of company assets & liabilities. It helps in…

Q: Sadaf Oman Company purchased a land for RO 250,000 in 2010. In October 2020, the company sold this…

A: Non-current assets are the company's tangible or long term investments which can't be converted into…

Q: On January 1, 2016, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000,…

A:

Q: Bona Company purchased an investment property on January 1, 2021 for P2,200,000. The property had a…

A: Depreciation is the reduction of the asset due to normal wear and tear, passage of time, etc.

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years…

A: Introduction Decrease in value of assets due to obsolete and old condition this decrease in asset…

Q: GEE Company and EYCH Inc. decided to exchange machineries on January 1, 2019. The machine of GEE…

A: When it is anticipated that a company's potential cash flows will increase as a consequence of a…

Q: Jessie Company purchased an investment property on January 1, 2020 at a cost of P2,200,000. The…

A: Given information, Cost of the property =P2,200,000 Fair value of the property =P3,000,000 Useful…

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years…

A: Assets held for sale are recorded at lower of carring amount in books and fair value less cost of…

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful lite of 10 years…

A: Recoverable Value of the Equipment on December 31, 2022 =  Fair Value - Cost of disposal…

Q: Buttercup Company leased a property to Dickies Corporation on January 1, 2020 for a period of 8…

A: Lease receivable on January 1, 2020 =present value on January 1, 2020 - First payment on January 1,…

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years…

A: Recoverable value = Fair value less cost of disposal for December 2022 = P3300,000 - P100,000 =…

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful lite of 10 years…

A: Recognized gain/loss = P3,800,000 - P200,000 = P3,600,000

Q: An entity accounted for land using the revaluation model. On October 1, 2020, the entity classified…

A: The assets held for sale are recognized at FV less cost of disposal. Any revaluation gain on…

Q: Rob Lucci Company sold to another entity a tract of land costing P5,000,000 for P7,000,000 on…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: On January 01, 2020, Sisig Corp. acquired an investment property, and the initial cost of the…

A: The investment property refers to the investment that is either used for capital appreciation or for…

Q: square meters are still unsold and the market value of the lost had increased to P1,600 per square…

A: We have to find out the amout of gain as a result of transfer

Q: Ben Company purchased an investment property on January 1, 2020 at a cost of P250.000. The property…

A: The investment property refers to the asset that is not used in production and providing goods and…