Discuss the correctness of the given treatment

Reference no: EM131912835

Problem

Mason Inc. recently received at $15,000 land from the City of Corona as an inducement to locate its business in Corona. The appraised value of the land is $30,000. The company made no entry to record the land because it had no cost basis. Using financial accounting standards, discuss the correctness of this treatment. If you believe an entry should have been made, prepare that entry and discuss why.

Reference no: EM131912835

Questions Cloud

Provide an example of probabilities : What does it mean for two probabilities to be mutually exclusive? Provide an example of probabilities that are mutually exclusive.

Explain one relevant tax issue for mary : Explain one relevant tax issue for Mary and describe the tax advantages and disadvantages of what she may be faced with.

Determine the cost recovery for the asset : Mary purchased a new business asset (five-year asset) on September 30, 2015, at a cost of $100,000. Determine the cost recovery for 2016 for the asset.

Estimate the average selling price and average cogs per unit : Estimate the average Selling price and average COGS per unit - What is the Degree of Operating Leverage? Comment on the DOL and how it improved profitability

Discuss the correctness of the given treatment : Using financial accounting standards, discuss the correctness of this treatment. If you believe an entry have been made, prepare that entry and discuss why.

Calculate the current break-even point in units : Calculate the current break-even point in units, and compare it to the break-even point in units if Mary's ideas are used.

Calculate the new operating income : Calculate the break-even point in units - the new operating income. Explain whether JBC should reduce the selling price and increase sales commission

How much will you have in five years : Your nonprofit organization has received a temporarily restricted fund of $100,000 to be used in five years. You can deposit it in the bank to earn 6 percent.

Calculate the benefit-to-cost ratio : If the $11 cost per vehicle, in 1972, is equal to $64.25 in 2017, then what rate of inflation, i%=?, was used to determine the 2017 costs?

User Account

All Pages