Assume that Bilal company purchased an asset for OMR 10000 on 1 Jan 2014. The company charging OMR 2000 depreciation per annum by following straight-line depreciation method. The company charged total depreciation till 31December 2016 is OMR 6000 and the company decided to sell this asset for OMR 3000 on 31st Mar2017. Calculate the gain or loss on sale of asset. a. OMR 500 loss b. None of the given options C. OMR 1000 loss d. OMR 500 profit

Q: Use the following information for the next two (2) questions: The Malaluan Company accounts for…

A: Financial statement A financial statement refers to those prepared to ascertain a company’s…

Q: On January 1, 2022, Villanueva Company classified noncurrent assets as held for sale that had a…

A: Noncurrent assets are long-term investments that will not be fully recognized within the fiscal…

Q: A. MacPro Property Bhd acquired an investment property on 1 January 2015 and measured it using the…

A: Answer A: part 1: The transition of investment property calculation from the cost approach to the…

Q: Dawn Company purchased a machine on January 1, 2018 for P3,000,000. At the date of acquisition, the…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: UNO COMPANY purchased equipment for P5,000,000 on January 1, 2013 with a useful life of ten years…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: cost model. What amount should be carried in the statement of financial position as investment…

A: Definition: Cost model: It is an accounting policy for reporting the carrying value of the property…

Q: On January 1, 2022, Villanueva Company classified noncurrent assets as held for sale that had a…

A: Introduction: A noncurrent asset is one that is not projected to be utilized within one year. If a…

Q: UNDOS COMPANY purchased equipment for P5,000,000 on January 1, 2013 with a useful life of ten years…

A: When an assets cease to be used in regular use and held for sale , then it should be carry at fair…

Q: On January 1, 2022, Villanueva Company classified noncurrent assets as held for sale that had a…

A: Asset  classified as "held for use" means that the disposal of the asset will not take place and if…

Q: Taylor Company purchased a machine for $9,800 on January 1, 2016. The machine has beendepreciated…

A: Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets = ($9,800 - $1,400)…

Q: ABC Corp bought a production machine on January 1, 2018 for $31,250. The company did not elect…

A: From the MACRS accelerated depreciation table, the rate for 5 year property at the end of 3rd year…

Q: The S & R Company acquired equipment on January 1, 2017 at a cost of P800,000, depreciating it over…

A: When a company acquired another entity, all the fixed assets may be subject to revaluation as on the…

Q: Nyhiraba Limited purchased an asset on 1st January 2015 for an amount of R5 million. The asset has…

A: As per IAS 36 Impairment of Assets,  An asset is said to be impairment if it's carrying amount is…

Q: JPHEI Company purchased a machine on January 1, 2016 for P6,000,000. At the date of acquisition, the…

A: Solution: Accumulated depreciation for 3 years (from 2016 to 2018) = (Cost - residual value) * 3/ 6…

Q: aloha communication purchased equipment in January 1, 2017, for $27,500. Suppose Alpha Communication…

A: Market value of asset received   $20,000.00 Less: Book value of asset disposed of:     Cost…

Q: Assume that Hider Darwesh Company purchased a Machine for OMR 25000 on 31st December 2013.The…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: On January 1, 2023, Stigman Company purchased building at a cost of P10,000,000 with a 10-year…

A: Accumulated Depreciation=CostUseful Life×2 years=P 10,000,00010×2 Years=P 2,000,000

Q: Required:  Prepare all required journal entries for annual depreciation and revaluation for 2014 to…

A: Accumulated depreciation: Accumulated depreciation refers to the total amount of depreciation…

Q: On Mar. 31, 2020 XYZ bought machinery at P300,000. XYZ opted to use the double-declining method to…

A: Machinery purchased on 31 March, 2020 = P 300000 Salvage Value = P 5000 Total depreciable amount for…

Q: Pass the necessary entries on 30 June 2017 and 30 June 2018 to eliminate the intra-group transfer of…

A: Corporate accounting:   Branch of accounting that deals with the preparation of the financial…

Q: On January 1, 2022, Villanueva Company classified noncurrent assets as held for sale that had a…

A: Noncurrent assets are long-term investments which will not be fully recognized until the following…

Q: Omar Company owns a property which was revalued to $ 625,000 on 31 December 2018 with a revaluation…

A: From the info given in the question it seems that the company…

Q: Han, Inc. owns a building purchased on January 1, 2016 for P100 million. The building was used as…

A: answerAs per IFRS /IAS An organisation shall transfer a property to, from investment property only…

Q: Required:  (round all dollar amounts to the nearest whole dollar; and all other amounts to four…

A: Fixed assets: Fixed assets can be defined as those assets of the business entity that are not…

Q: Required:  Prepare all required journal entries for annual depreciation and revaluation for 2014 to…

A: Asset revaluation: Asset revaluation can be defined as any deflection in the value of asset which…

Q: On January 1, 2007, Taft Co. purchased a patent for 714,000. The patent is being amortized over its…

A: Solution We are provided with the following information Cost of patent =  714,000 Amortization time…

Q: GALING Co. acquired a building on March 1, 2021. The costs related to the acquisition are as…

A: Cost of the building = Purchase price + Options + Repairs - Options incurred on a building which is…

Q: On January 1, 2014, Tanaka, Inc. purchased equipment for $27,000. Tanaka uses straight-line…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: On January 1, 2022, Villanueva Company classified noncurrent assets as held for sale that had a…

A: As per provisons of PFRS on the assets held for sale, when the asset fulfils the conditions for held…

Q: Assume that Yousuf & Sons company purchased equipment for OMR 12000 on 31st December 2014. The…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: ABC Company acquired an equipment on January 1, 2020 for P5,000,000. Depreciation is computed using…

A:

Q: Client A acquired a property on 31 December 2012 for P250,000. The asset is expected to be used…

A: Solution Given Cost of asset 250000 Useful life 10 years Residual value (5% of…

Q: Calculate the depreciation expense, accumulated depreciation, and book value of the asset for each…

A: Depreciation per Year = (Historical cost - Residual Value)/Useful life  It is pertinent to note that…

Q: B Co acquired a non-current asset on 1 January 2007 for $80,000. It had no residual value and a…

A: Depreciation under the straight-line method is calculated by dividing the difference of the cost of…

Q: Sabiha Purchased an Equipment on 1st January 2016 at a cost of OMR 200,000. The equipment has zero…

A: Computing the annual depreciation and total depreciation as of 31st December 2019: The annual…

Q: Discuss the accounting treatment of the above transaction in accordance to MFRS 108 Accounting…

A: Accounting policies: Accounting policies can be defined as the procedure used and the principles…

Q: Mumtaj, Inc. is acquiring equipment as follows: Krafton will pay cash of $500,000 and sign a…

A: Working: Present value ofPrincipal=$1,661,000×0.7513=$1,247,933.88

Q: Booster Co purchased a building on 1 January 2010 for P1,250,000. At acquisition, the useful life of…

A: Annual depreciation= (cost of the assets  - residual value) / life of the assets = (P1,250,000-0) /…

Q: On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000 when its’ carrying value in…

A: Amount unrealized loss = Sales value of assets - carrying value of the assets = $150,000 - $200,000…

Q: ABC Ltd acquired an item of machinery on 1 July 2021 for a cost of $120 000 When the asset was…

A:

Q: AF’s property, plant, and equipment is reported at cost. The company has a policy ofnot revaluing…

A: Calculate book value as on December 31, 2015:

Q: Assume that Yousuf & Sons company purchased equipment for OMR 12000 on 31st December 2014. The…

A: Net book value of equipment 31 December 2017 = Cost - accumulated depreciation = 12000 - 7200 = OMR…

Q: Assume that Sohar traders purchased a Truck for OMR 15000 on 31st December 2015. The expected…

A: Depreciation refers decline or reduction in the value of a tangible asset over a due course of time…

Q: On July 1, 2019, AXS COMPANY acquired an asset for P1,312,500. The asset is being depreciated over a…

A: solution: given: purchase price (cost )     =P1312500 useful life           =6 years residual value…

Q: The R Company acquired an equipment on January 1, 2016 at a cost of P900,000, depreciating it over 8…

A: Working Note :- Particulars Amount P Amount P Cost of equipment Jan 1 ,…

Q: On December 31, 2020, Listach Inc. sold a used industrial crane for $600,000 cash. The original cost…

A: Formula: Gain or loss on sale of Asset = Sale value - Book value

Q: As at 31 December 2020, Lambda Ltd’s property in its statement of financial position was: Property…

A:

Q: Merida company acquired an item of property, plant and equipment at a cost of P1,000,000 on January…

A: Asset held for sale are those assets which as per IFRS 5 has been decided to sell by the management…

Q: Jasmin Company purchased an investment property on January 1, 2017 at a cost of P2,200,000. The…

A: Cost of investment property = 2200000 Use ful life = 40 years Deprecation for 2 years =2200000/40…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.