Steven, Inc., acquired a truck on January 1, 2016 for $40,000 cash. The truck was estimated to have a useful life of 10 years with no residual value, and the firm decided to use straight-line amortization. On January 1, 2017, management determined that the remaining useful life was actually only 6 more years. On June 30, 2018, the truck was sold for $25,000.

How much would Steven record as the value of the truck when it is acquired on January 1, 2016?

How much would Steven record as the amortization expense related to the patent for 2016?

Compute the amount of amortization that would be recorded for 2017.

Compute the amount of the loss that would be recorded upon the sale of the truck on June 30, 2018.

Thank you for your help!

Acquisition at Other than Fair Value of Net Assets

Mason Corporation acquired 100 percent ownership of Best Company on February 12, 20X9. At the date of acquisition, Best Company reported assets and liabilities with book values of $420,000 and $165,000, respectively, common stock outstanding of $80,000, and retained earnings of $175,000. The book values and fair values of Best’s assets and liabilities were identical except for land which had increased in value by $20,000 and inventories which had decreased by $7,000. The estimated fair value of Best as a whole at the date of acquisition was $295,000.

  Required:

Give the eliminating entries required to prepare a consolidated balance sheet immediately after the business combination assuming Mason acquired its ownership of Best for $280,000.

Identify whether each of the following would or would not be recorded as an intangible asset in the financial statement of Hummings as at the end of the reporting period of 30 June 2016 according to AASB 138 intangible assets.

Hummings has acquired copyrights for $240,000, The copyright (intangible)has a useful life of 50 years and over this time period is expected to generate future economic benefits well in excess of its cost of purchases.

Hummings spent $600,000 over the past 5 years on the design and promotion of its brad. It is expected that such expenditure will provide significant economic benefits well in excess of the costs of promoting the brand.

On 1 July 2015 Hummings acquired another company (XYZ Ltd). Goodwill of $35,000 has been recognized on the purchase.

Hayes Industries purchased the following assets and constructed a building as well. All this was done during the current year. Assets 1 and 2: These assets were purchased as a lump sum for $100,000 cash. The following information was gathered. Description Initial Cost on Seller’s Books Depreciation to Date on Seller’s Books Book Value on Seller’s Books Appraised Value Machinery $100,000 $50,000 $50,000 $90,000 Equipment 60,000 10,000 50,000 30,000 Asset 3: This machine was acquired by making a $10,000 down payment and issuing a $30,000, 2-year, zero-interest-bearing note. The note is to be paid off in two $15,000 installments made at the end of the first and second years. It was estimated that the asset could have been purchased outright for $35,900. Asset 4: This machinery was acquired by trading in used machinery. (The exchange lacks commercial substance.) Facts concerning the trade-in are as follows. Cost of machinery traded $100,000 Accumulated depreciation to date of sale 40,000 Fair value of machinery traded 80,000 Cash received 10,000 Fair value of machinery acquired 70,000 Asset 5: Equipment was acquired by issuing 100 shares of $8 par value common stock. The stock had a market price of $11 per share. Construction of Building: A building was constructed on land purchased last year at a cost of $150,000. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows. Date Payment 2/1 $120,000 6/1 360,000 9/1 480,000 11/1 100,000 To finance construction of the building, a $600,000, 12% construction loan was taken out on February 1. The loan was repaid on November 1. The firm had $200,000 of other outstanding debt during the year at a borrowing rate of 8%. Record the acquisition of each of these assets.

home / study / business / accounting / accounting questions and answers / on january 1, 2012, aspen company acquired 80 percent of birch company’s outstanding voting ... Question: On January 1, 2012, Aspen Company acquired 80 percent of Birch Company’s outstanding voting stock... On January 1, 2012, Aspen Company acquired 80 percent of Birch Company’s outstanding voting stock for $364,000. Birch reported a $320,000 book value and the fair value of the noncontrolling interest was $91,000 on that date. Also, on January 1, 2013, Birch acquired 80 percent of Cedar Company for $108,000 when Cedar had a $108,000 book value and the 20 percent noncontrolling interest was valued at $27,000. In each acquisition, the subsidiary’s excess acquisition-date fair over book value was assigned to a trade name with a 30-year life. These companies report the following financial information. Investment income figures are not included. 2012 2013 2014 Sales: Aspen Company $ 485,000 $ 767,500 $ 892,500 Birch Company 211,500 386,000 622,300 Cedar Company Not available 263,700 240,000 Expenses: Aspen Company $ 332,500 $ 525,000 $ 635,000 Birch Company 167,000 315,000 550,000 Cedar Company Not available 244,000 210,000 Dividends declared: Aspen Company $ 10,000 $ 45,000 $ 55,000 Birch Company 8,000 18,000 18,000 Cedar Company Not available 2,000 6,000 Assume that each of the following questions is independent: . Assume that Birch made intra-entity inventory transfers to Aspen that have resulted in the following unrealized gross profits at the end of each year: Date Amount 12/31/12 $13,500 12/31/13 16,200 12/31/14 30,400 What is the realized income of Birch in 2013 and 2014, respectively?

Record entries from the transaction and event list provided below in proper journal entry format. Show your work if the entry requires you to make a calculation (i.e. depreciation, interest expense, etc.).

October

29. Your top sales officer met with a new customer to discuss a potential future contract. She informs you that the customer is considering signing the $200,000 deal, which would become effective February 2020. 6 ACCY1 Accounting Fundamentals Group Project

30. On October 1st, you purchased 11,250 units at the decreased price of $61 per unit. The purchase was made on account.

31. On October 10th you paid your supplier $132,000 cash for inventory purchased on account.

November 32.

November 1st, the CEO, in an effort to adjust ratios, ordered the repurchasing of the company’s own stock. The quantity of stock repurchased was 175,000 shares.

33. Purchased a three-year building insurance policy on November 1st for $442,000 cash. [Adjusting Entry Required]

34. On November 17th a customer pays you $450,000 for work that you will finish in January of 2020.

35. November 19th, your customers bought 8,650 units of your product at $110 per unit. The cost of this product is determined by the method of inventory valuation used by your company. Customers paid you 55% in cash and the remainder was on account.

36. An employment contract is signed with a new regional manager. You have offered him $150,000 per year. He will not begin working for the company until March 2020. December

37. Wages earned from July 1st through December 31st was $480,000. Wages earned between Dec. 15th and Dec 31st amounting to $27,500 was not paid this until Jan 7th.

38. At the end of the year, $42,000 cash was paid to the local bank for the long-term note payable taken out on January 1, 2019. $38,000 of this was applied to the loan principal. The remaining amount was the accumulated interest due for 2019.

39. On December 31st, the marketable (trading) securities you purchased on September 23, 2019 transaction now has a fair market value of $134,000.

40. On December 31st, $480,000 depreciation expense for the year was calculated for equipment purchased before January 1, 2019.

41. On December 31st, you declare dividends of $.32 per share to be paid at a later date.

42. On December 31st, the utility bill was paid for the year. The amount was $66,000 and you paid in cash.

43. On December 31st, you pay in cash recurring interest on the long-term note acquired prior to the year 2017. HINT: See prior year financial statements.

44. On December 31st, your company earned interest on the average 2019 cash balance which will be paid January 5th, 2020. The average interest rate for the year was 4.0%. Note: Compute the average cash using only the beginning and ending balance.

45. By December 31st, 85 of the prepaid service hours from March 20, 2019 were completed.

46. A count of office supplies indicated that $27,000 of office supplies had been used by December 31st.

47. Since the inception of your company, you have been able to collect 84% of your ending accounts receivable balance from customers that bought your product on account. Based on this information, adjust your allowance for bad debt account. NOTE: Use your 2019 ending accounts receivable balance to make this calculation.

PART A

Your line manager, Ahmed, has sent you the following email late on Wednesday just as you are about to finalise your timesheet and head to a monthly tax-update webinar:

Required: You are required to calculate Lisa’s Net Capital Gain (loss) for the year ending 30 June 2020 based on the above information provided. In doing so, you must present an accurate and complete analysis.

Question 6

A.6 Determine the Net Capital Gain and/or Loss for Lisa. Briefly justify your answer/show all workings.

Hint: it is recommended you use a table format to present your answer.

Sunland Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 12 paid vacation days and 7 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows.

Sunland Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without discounting. The company used the following projected rates to accrue vacation time.

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.

Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,125.)Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020. (Round answers to 0 decimal places, e.g. 5,125.)