User Account

All Pages

How much gain should Gem report on the sale

Assignment Help Accounting Basics
Reference no: EM132760519

Question - On December 31, 2020, Gem Company sold a building, receiving as consideration a P5,000,000 non-interest-bearing note due in three years. The building had cost P4,000,000 and the accumulated depreciation was P1,500,000 at the date of sale. The prevailing rate of interest for a note of this type was 10%. Round off present value factors to two decimal places.

Required -

1. In its 2020 income statement, how much gain should Gem report on the sale?

2. How much is the 2021 interest income?

3. What is the carrying amount of the note on December 31, 2021?

Reference no: EM132760519

Questions Cloud

Compute total cost of units transferred to finished goods : Compute for the total cost of units transferred to finished goods assuming that the lost units were spoiled at the start of processing
What is the net cash received over the life of the bond : The straight line method of amortization is used for both premiums & discounts. What is the net cash received over the life of the bond investment
Compute Heinz Ltds annual interest revenue : Compute Heinz Ltd.'s annual interest revenue on this bond investment. Use the straight-line method to amortize the discount on the investment
What was the cash dividend paid to shareholders : A company generated $138m in free cash flow, spent $88m in after-tax interest, What was the cash dividend paid to shareholders
How much gain should Gem report on the sale : The building had cost P4,000,000 and the accumulated depreciation was P1,500,000 at the date of sale. How much gain should Gem report on the sale
Explain the potential impact of white privilege : Explain the potential impact of white privilege on clients from both dominant and minority groups (consider impact of both positive and negative stereotypes).
Discuss the issue of negative stereotyping : Discuss the issue of negative stereotyping and ageism by applying one of the following two research methods: (1) make direct observations of the treatment of
What are the advantages of globalization : What are the advantages of globalization? What are the possible negative consequences of globalization? Knowing the concept of globalization
What are the best human skills you see in an individual : What are the best human skills you see in an individual? The skills could be moral or social. (three hundred words limit) Kindly be sure with your grammar and s

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd