Question

In: Finance

Taryn sold a sculpture for $6,000 on 1 January 2020, she bought it on December 1994...

Taryn sold a sculpture for $6,000 on 1 January 2020, she bought it on December 1994 for $1,500

Calculate both Indexation and Discount Capital Gain. Later on you need to advise which one will give you a better result.

Solutions

Expert Solution

  • Solution in these two boxes

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

1. On January 1, 2020, Ginseng Inc. entered into a forward contract to purchase U.S. $6,000...
1. On January 1, 2020, Ginseng Inc. entered into a forward contract to purchase U.S. $6,000 for $6,336 Canadian in 30 days. On January 15, the fair value of the contract was $40 (reflecting the present value of the future cash flows under the contract). Assume that the company would like to update its records on January 15. (a) Prepare only the necessary journal entries on January 1 and 15, 2020. 2. (Derivative Transaction) On April 1, 2020, Petey Ltd....
On January 1, 2020, an entity sold a car to a customer at a price of...
On January 1, 2020, an entity sold a car to a customer at a price of P320,000 with a production cost of P240,000. It is the entity’s policy to employ installment method to recognize gross profit from installment sales. At the time of sale, the entity received cash amounting to 25% of the selling price and old car with trade-in allowance of P40,000. The said old car has fair value of P120,000. The customer issued a 5-year note for the...
Milan Clothing Co. bought a machine for $40,000 on January 1, 2020. The machine has a...
Milan Clothing Co. bought a machine for $40,000 on January 1, 2020. The machine has a useful life of 4 years, and a residual value of $3,000. Part A Assume that Milan Clothing Co. uses the double-declining balance method for depreciation. Calculate depreciation expense for Year 1 and Year 2 of the machine’s useful life. Please show your calculations (i.e., each piece and the total). Part B . Assume that this part is unrelated to Part A. That is, forget...
Numbers 12 and 13 On January 1, 2020, an entity sold a new car at a...
Numbers 12 and 13 On January 1, 2020, an entity sold a new car at a price of P1,300,000 with production cost of P1,170,000. At the time contract signing, the entity received P130,000 cash and old car as down payment. The entity gave a trade-in allowance of P390,000 to the old car although its fair market value on January 1, 2020 is P650,000. The remaining balance is payable in six equal monthly installments starting February 1, 2020. The buyer religiously...
On January 1, 2020, Allan Company bought a 15 percent interest in Sysinger Company. The acquisition...
On January 1, 2020, Allan Company bought a 15 percent interest in Sysinger Company. The acquisition price of $208,500 reflected an assessment that all of Sysinger’s accounts were fairly valued within the company’s accounting records. During 2020, Sysinger reported net income of $112,800 and declared cash dividends of $33,700. Allan possessed the ability to significantly influence Sysinger’s operations and, therefore, accounted for this investment using the equity method. On January 1, 2021, Allan acquired an additional 80 percent interest in...
Make the following journal entries in good form. 1. On January 1, 2020, Entity A sold...
Make the following journal entries in good form. 1. On January 1, 2020, Entity A sold common stock for $30,000 to investors. 2. On January 3, 2020, Entity A performed services for Entity B for $1,500 on account. 3. On January 5, 2020, Entity A performed services for Entity C for $750 and Entity C paid. 4. On January 7, 2020, Entity A purchased a new computer (office equipment) from Best Buy for $500, paying $100 down, the rest on...
Make the following journal entries in good form. 1. On January 1, 2020, Entity A sold...
Make the following journal entries in good form. 1. On January 1, 2020, Entity A sold common stock for $30,000 to investors. 2. On January 3, 2020, Entity A performed services for Entity B for $1,500 on account. 3. On January 5, 2020, Entity A performed services for Entity C for $750 and Entity C paid. 4. On January 7, 2020, Entity A purchased a new computer (office equipment) from Best Buy for $500, paying $100 down, the rest on...
On January 1, 2020, Sandhill Corporation sold a building that cost $273,840 and that had accumulated...
On January 1, 2020, Sandhill Corporation sold a building that cost $273,840 and that had accumulated depreciation of $109,280 on the date of sale. Sandhill received as consideration a $263,840 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2020, was 10%. At what amount should the gain from the sale of...
On January 1, 2020, Blue Animation sold a truck to Peete Finance for $40,000 and immediately...
On January 1, 2020, Blue Animation sold a truck to Peete Finance for $40,000 and immediately leased it back. The truck was carried on Blue’s books at $35,000. The term of the lease is 5 years, there is no bargain purchase option, and title does not transfer to Blue at lease-end. The lease requires 5 equal rental payments of $9,239 at the end of each year (first payment on January 1, 2018). The appropriate rate of interest is 5%, the...
1a. On January 1, 2020, Wildhorse Corporation sold a building that cost $259,320 and that had...
1a. On January 1, 2020, Wildhorse Corporation sold a building that cost $259,320 and that had accumulated depreciation of $102,520 on the date of sale. Wildhorse received as consideration a $249,320 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2020, was 11%. At what amount should the gain from the sale...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT