Prepare all of the journal entries relating to the property

Assignment Help Accounting Basics
Reference no: EM132721596

Question - Haorong Corp has an investment property it paid $20,000,000 for on January 1, 2020. An appraisal valued the land at $4,620,000 and the building at $16,380,000 for the property. The building is expected to last 30 years with no residual value. The property was appraised at December 31, 2020 at $22,500,000. The company has a December 31, 2020 year end and uses straight-line depreciation.

Required -

(a) Prepare all of the 2020 journal entries for the property assuming the cost method is used to account for the investment property.

(b) Prepare all of the 2020 journal entries relating to the property assuming instead that the fair value model is used to account for the investment property.

(c) Which method results in higher income for 20207 Provide the impact ($ and +/-) on 2020 income for both methods showing your calculations.

Reference no: EM132721596

Questions Cloud

Draw the company organization chart : The other vice president has one production facility with three cost centers reporting to her. Draw the company's organization chart.
Find how come goes into the credit side of the adjustment : When make a payment of $2,000 to the account, how come it goes into the credit side of the adjustment section of a worksheet?
Describe the role of information technology in globalization : Describe the role of information technology in globalization. Define the digital divide and explain Nielsen's three stages of the digital divide
How to prepare the december journal entry to record : Construct the December 31, 2020 journal entry to record the adjustment to Allowance for Doubtful Accounts. Riverbed Corp. had net sales in 2020 of $1.5 million.
Prepare all of the journal entries relating to the property : Prepare all of the 2020 journal entries relating to the property assuming instead that the fair value model is used to account for the investment property
Calculate break even points in units : Calculate break even points in units. budgeted production unit is 10 000 units. variable production costs P12.00. fixed production cost P 40.00
What was the balance in alan margin account : The futures price was USD 500 per unit and the contract size was 100 units per contract. What was the balance in Alan margin account
Describe what happens to an antigen : Describe what happens to an antigen when it is tagged with an antibody in terms of opsonization and neutralization.
Briefly explain the usefulness of the statement of cash flow : Briefly explain the usefulness of the Statement of Cash Flows.Hardy Ltd has just completed its first year of operations on 30 June 2018.

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.

  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!

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