Reference no: EM132947843

Questions -

Q1. On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of 300,000 to SUNFLOWER Company. SUNFLOWER Company assesses a finance charge of 3% of the receivables and retains 5% of the receivable for possible sales returns. Relative to this transaction, you are to determine the amount of loss on sale or factoring to be reported in the income statement of MARIGOLD Company for February. Assume that MARIGOLD factors the receivables on a without recourse basis. The amount of cash initially to be received is?

A. 285,000

B. 291,000

C. 300,000

D. 276,000

Q2. On January 1, 2020, DAHLIA Company showed land with a carrying amount of 10,000,000 and building with cost of 60,000,000 and accumulated depreciation of 18,000,000. The land and building were revalued on the same date and revealed the fair value of land at 15,000,000 and building at 70,000,000. The original useful life of the building is 20 years and depreciation is computed on the straight line. What is the revaluation surplus on December 31, 2020?

A. 11,142,857

B. 31,000,000

C. 11,500,000

D. 30,642,857

E. 33,000,000

Q3. On January 1, 2020, DAHLIA Company showed land with a carrying amount of 10,000,000 and building with cost of 60,000,000 and accumulated depreciation of 18,000,000. The land and building were revalued on the same date and revealed the fair value of land at 15,000,000 and building at 70,000,000. The original useful life of the building is 20 years and depreciation is computed on the straight line. What is the annual depreciation for 2020?

A. 3,500,000

B. 5,000,000

C. 3,000,000

D. 4,500,000