Question

In: Accounting

Jarvis Corporation owned a building with a book value of $109,000 at 12/31/24. The building had...

Jarvis Corporation owned a building with a book value of $109,000 at 12/31/24. The building had a 15-year remaining life and a revaluation surplus balance of $46,000 on that date. The company sold the building on 1/1/25 for $182,000. What is the effect of the sale on OCI per IFRS?

Select one:

a. $119,000

b. $182,000

c. $27,000

d. $46,000

e. $73,000

Solutions

Expert Solution

Book Value as on 31-12-24 = 109000

Revaluation surplus = 46000

Value of building as on 1-1-25 = 109000+46000 =155000

Selling price as on 1-1-25 = 182000

Profit on Sale on Other Comprehensive Income (OCI) =182000-155000 = 27000

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Jarvis Corporation owned a building with a book value of $109,000 at 12/31/24. The building had...
Jarvis Corporation owned a building with a book value of $109,000 at 12/31/24. The building had a 15-year remaining life and a Revaluation Surplus balance of $46,000 on that date. The company sold the building on 1/1/25 for $182,000. What is the combined effect of the sale and Revaluation Surplus adjustment on Total Assets per IFRS? Select one: a. $109,000 b. $182,000 c. $27,000 d. $46,000 e. $73,000
Straightarm Inc. is a calendar-year corporation. Its financialstatements for the years ended 12/31/24 and 12/31/25...
Straightarm Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/24 and 12/31/25 contained the following errors:20242025Ending inventory$15,000 understatement$24,000 overstatementDepreciation expense$6,000 understatement$12,000 understatementFailed to record Unearned Revenue at 12/31/25: $7,000Straightarm declared a cash dividend of $11,000 on 12/31/25. No journal entry was made in 2025. The dividend was paid on 1/3/26; Straightarm debited Retained Earnings and credited Cash.12/31/25 Liabilities are in error by:Select one:a. $7,000b. $18,000c. $11,000d. $4,000
Straightarm Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/24 and 12/31/25...
Straightarm Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/24 and 12/31/25 contained the following errors: 2024 2025 Ending inventory $15,000 understatement $24,000 overstatement Depreciation expense $6,000 understatement $12,000 understatement Failed to record Unearned Revenue at 12/31/25: $7,000 Straigtharm declared a cash dividend of $11,000 on 12/31/25. No journal entry was made in 2025. The dividend was paid on 1/3/26; Straightarm debited Retained Earnings and credited Cash. 12/31/26 Total Stockholders’ Equity is in error by: Select...
Exercise 10-24 On December 31, 2017, Oriole Inc. has a machine with a book value of...
Exercise 10-24 On December 31, 2017, Oriole Inc. has a machine with a book value of $1,297,200. The original cost and related accumulated depreciation at this date are as follows. Machine $1,794,000 Less: Accumulated depreciation 496,800 Book value $1,297,200 Depreciation is computed at $82,800 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made...
HOYLE CORPORATION SOLD A BUILDING FOR 200,000 THIS YEAR.THE TAX BASISWAS 235,00 AND BOOK VALUE WAS...
HOYLE CORPORATION SOLD A BUILDING FOR 200,000 THIS YEAR.THE TAX BASISWAS 235,00 AND BOOK VALUE WAS 250,000. HOYLE HAS BOOK INCOME BEFORE TAXES OF 3,000.000. WHAT IS AMOUNTOF TAXABLE INCOME ON SCHEDULE M1 FORM 1120 FOR THE YEAR 3,015,000 3,035,000 3,050,000 3,235,000
The Bronco Corporation exchanged land for equipment. The land had a book value of $126,000 and...
The Bronco Corporation exchanged land for equipment. The land had a book value of $126,000 and a fair value of $162,000. Bronco received $16,000 from the owner of the equipment to complete the exchange which has commercial substance.     Required: 1. What is the fair value of the equipment? 2. Prepare the journal entry to record the exchange.
Dobbs Company issues 9%, two-year bonds, on December 31, 2017, with a par value of $109,000...
Dobbs Company issues 9%, two-year bonds, on December 31, 2017, with a par value of $109,000 and semiannual interest payments. Semiannual Period-End Unamortized Discount Carrying Value (0) 12/31/2017 $ 6,180 $ 102,820 (1) 6/30/2018 4,635 104,365 (2) 12/31/2018 3,090 105,910 (3) 6/30/2019 1,545 107,455 (4) 12/31/2019 0 109,000 Use the above straight-line bond amortization table and prepare journal entries for the following. Required: (a) The issuance of bonds on December 31, 2017. (b) The first through fourth interest payments on...
Baker Corporation owned a building located in Kansas. Baker used the building for its business operations
Baker Corporation owned a building located in Kansas. Baker used the building for its business operations. Last year a tornado hit the property and completely destroyed it. This year, Baker received an insurance settlement. Baker had originally purchased the building for $350,000 and had claimed a total of $100,000 of depreciation deductions against the property. a. What is Baker’s realized and recognized gain or (loss) on this transaction and what is its basis in the new building in the following...
A building with a book value of $54,000 is sold for $63,000 cash. Using the indirect...
A building with a book value of $54,000 is sold for $63,000 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as follows: a. an increase of $63,000 from investing activities and a deduction from net income of $9,000 b. an increase of $54,000 from investing activities c. an increase of $9,000 from investing activities d. an increase of $54,000 from investing activities and an addition to net income of $9,000
George owned a restaurant. He purchased the building for 200,000, and had taken 150,000 of depreciation...
George owned a restaurant. He purchased the building for 200,000, and had taken 150,000 of depreciation on the building. It was destroyed by a fire on 04/17/18. it was insured for 300,000 and the insurance Company paid George 280,000 on 12/06/18. The fire was considered a natural disaster area. If George wants to avoid recognition of the gain, what is the minimum amount he must pay for a new restaurant, and if he purchases a new restaurant for 250,000 on...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT