Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. (a)on 1 july 2019 manila ltd sold an item of plant

(a)On 1 July 2019 Manila Ltd sold an item of plant to Tokyo Ltd for...

50.1K

Verified Solution

Question

Accounting

(a)On 1 July 2019 Manila Ltd sold an item of plant to Tokyo Ltd for $600,000 when its carrying value in Manila Ltd book was $800000 (costs $1200,000, accumulated depreciation $400,000). This plant has a remaining useful life of five (5) years form the date of sale. The group measures its property plants and equipment using a costs model. Tax rate is 30 percent.

Required:

a) Pass the necessary entry in 30 June 2020 to eliminate the intra-group transfer of equipment.

b) How will the profit or loss arising out of the intra-group transfer of depreciable asset be recognised? Explain with an example

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Testbank, Question 15 An analyst has obtained the following information about Maudite Brewers Co.: Book value...

Finance
Q

how might pollution and deforestation effect an ecosystem?

Biology
Q

The subject is principle of profissional ethics Golden mean in professional ethics 1.Why do some businesspeopple make...

Psychology
Q

Why is the use of direct marketing increasing faster than overall sales growth? (Meaning that it...

General Management
Q

I m a process in which a form of matter with random movement of particles...

Biology
Q

Solve the quadratic equation using completing the square: x2 = -2x + 21x=-1+ ?21 or...

Basic Math
Q

QUESTION 4 2 points A population of punishers is described by the DTDS 1 0...

Algebra
Q

On July 1, 2017, Headland Construction Company Inc. contracted to build an office building for...

Accounting
Q

Rooney Quilting Company makes blankets that it markets through a variety of department stores. It...

Accounting
Q

300 words answer please answer fast Learning alliances are the most common form...

Accounting
Q

Maria meets all of the requirements of 1237 (subdivided realty). In 2018, she begins...

Accounting
Q

A series of cash flows may not always necessarily be an annuity. Cash flows can...

Finance