hat is the amount realized in a transaction? The gain on the sale of an asset The proceeds less the basis The sum of any money received plus the fair market value of other property received The portion of the gain that is recognized

Q: The difference between book value of the asset with the proceeds receive from its sale, with result…

A: Assets:   It refers to the economic value of all resources owned by the business at a given point in…

Q: A gain on the disposition of Section 1245 property is treated as ordinary income to the extent of:…

A: Section 1245 properties are defined by IRS includes any personal property whether tangible or…

Q: 1. IAS 36 applies to which of the following assets? (a) Inventories. (b) Financial assets. (c)…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following is an example of a noncash activity?     Purchase of land using cash…

A: Non-cash activity: The transaction which does not involve any cash dealings is known as non-cash…

Q: Describe to Stan what it means to capitalize an expenditure. What is the general rulefor determining…

A:

Q: If an entity was not able to determine the fair value of both the asset received and the asset given…

A: Where the exchange of Assets have a commercial substance (sufficient cash flow can be generated in…

Q: Expenditures may be either capitalized or expensed. When Expenditure is capitalized it means that:…

A: Expenditures are the outflows of the business which help in the creation of assets that lead to the…

Q: When does the cost of land affect an entity's profit or loss? * O When the related revaluation is…

A: The Fixed assets and Investments that are long term in nature i.e. full value of the asset cannot be…

Q: 1. When an item of asset is transferred to and from the classification investment property, carried…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: Which of the following is not a condition that must be satisfied before interest capitalization can…

A: Option b is the correct answer because the other three options are the conditions that should be…

Q: How much is the gain or loss on sale of the land, if any?

A: G)                                                           Gain or loss on sale of land   A…

Q: How can the Gains and Losses on Depreciable Assets be determined?

A: For calculation of gains or losses on depreciable assets, written down value of the assets at the…

Q: The value of "Property, Plant, & Equipment, net" reported on the balance sheet represents: A) The…

A: Fixed assets are an unavoidable component of every business organization. These assets are useful in…

Q: Why are property, plant and equipment capitalized as an asset and not expensed

A: Property, Plant and Equipment are tangible assets of the business which provides benefit to the…

Q: n a restated set of financial statements prepared in accordance with the current cost accounting,…

A: Realized gain is the gain on sale of the asset where its cost price is less than the selling price.…

Q: Under IFRS, the recoverable amount of an asset is     The higher of an asset’s value in use or its…

A: Impairment of an asset: Impairment is the loss that occurs due to, unexpected decrease in the market…

Q: The sale of a depreciable asset resulting in a gain indicates that the proceeds from the sale were…

A: Depreciable assets are those fixed assets on which depreciation is charged over the years and net…

Q: What is the name of the accounting concept or principle that determines the amount initially entered…

A: Accounting for an entity is generally governed by various accounting concept that are generally…

Q: When an owner-occupied property is transferred to investment property at fair value, a decrease in…

A: Investment Property: The acquisition of an investment property is made with the purpose of…

Q: How do you identify an asset with reference to AASB? How should an asset be recognized in the…

A: Assets are those which have future economic benefit which flow into the organisation. These must be…

Q: What is the cost of right of use asset? 2. What is the gain on right transferred to the…

A: Cost of right of use asset 1468000 Gain on right transferred to buyer-lessor 533000

Q: What is the difference between tangible and intangible assets?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: gain from the sale or exchange of property which is not a capital asset

A: Second option is wrong because gross income is the income before allowing deductions. Third option…

Q: What is the treatment of any gain on a subsequent increase in the fair value less cost of disposal…

A: Subsequent will increase in truthful price. A gain for associated consequent increase in truthful…

Q: S1: Special Assessments shall form part of the cost of land. S2: Cost of option to buy a property…

A: S1: Special Assessments shall form part of the cost of land. This statement is true. Special…

Q: Assets acquired ina lump-sum purchase are valued based on: a. Their assessed valuation. b. Their…

A: As per IAS 16, when more than one item of property, plant, and equipment is purchased for a…

Q: In acquiring a Long Term Asset, what are the tax benefits that an entity may have?

A: Concept of tax saving on acquiring the long term assets

Q: rty classifed as held for sale are presented separately as current asset. True or False?

A: Solution: Assets held for sale are those assets which the company intends to sell. These held for…

Q: How should acquisition related costs such as due diligence and legal costs be accounted for?…

A: As per IFRS3, Acquisition costs such as Advisory cost, Accounting, and due diligence cost, Legal…

Q: 1. When reclassification is made from owner occupied property to investment property that will be…

A: Reclassification of owner occupied property to Investment property Treatment of gain or loss while…

Q: The generally accepted accounting principle that supports recording the value of a property at the…

A: Correct answer is option 'D' i.e. cost principle. Explanation:  Under US GAAP As per cost principle…

Q: Which of the following statements about capitalizing costs is correct?A. Capitalizing costs refers…

A: There are two type of costs treatments that are being done on all type of costs being incurred. One…

Q: When an intangible asset is acquired by an exchange of assets, which of the following measures will…

A: Intangible assets are those assets which we can not see or touch. These assets can only be felt.

Q: All of the following statements are true, except:     When property is acquired in exchange for…

A: The property, plant, and equipment are recorded as a tangible asset of the company. it is acquired…

Q: The difference between book value of the asset with the proceeds received from its sale, will result…

A: The book value of an asset is the value of the asset calculated by deducting the accumulated…

Q: The cost of property acquired by direct cash purchase includes the cash paid and:  A. the implied…

A: Property is a type of fixed assets that is being taken or acquired by the business. These can be…

Q: TRUE OR FALSE? An item of property plant and equipment can be asset held for sale.

A: The assets of the business are classified as current assets, fixed assets, tangible assets or…

Q: In determining the value in use, which of the following cash flow is excluded from the computation?…

A: As per provisions of IFRS, the value in use is used for the purpose of impairment of asset. If the…

Q: The amount due from or at the direction of the grantor is accounted for by the operator from the…

A: When the operator recieves a financial asset from the grantor, it is measured at fair value.

Q: Residual interest in the asset of an entity that remains after deducting its liabilities is? a.…

A: Accounting Equation - Accounting Equation is calculated using following equation - Assets =…

Q: Section 197 intangible property acquired as part of an acquisition of a business is amortized over…

A: Intangible assets are the assets with no physical form or substance Section 197 intangible property…

Q: A transfer from investment property carried at fair value to owner-occupied property shall be…

A: Investments: Investment is defined as an allocation of money with the prospect of some future…

Q: what is the important difference in the acquisition and payment of long-lived assets compared to…

A: Assets are the resources owned by an entity for the purposes of using them for future or for…

Q: Evaluate the following statements: S1. The borrowing cost is capitalized when the entity undertakes…

A: The answer for the multiple choice question and relevant explanation are presented hereunder :…

Q: The generally accepted accounting principle that supports recording the value of a property at the…

A: Monetary principle says that a business should only record transaction if it is measured in monetary…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.