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Accounting

1. The following transactions involving intangible assets of Sand Corporation occurred on or near December 31, 2020. Sand paid Beach Company $450,000 for the exclusive right to market a particular product, using the Beach name and logo in promotional material. The franchise runs for as long as Sand is in business. Sand decided to amortize the franchise over 25 years. Sand spent $100,000 developing a new manufacturing process and has applied for a patent. It believes that its application will be successful and that the process will be successfully implemented and used for 10 years. In January 2018, Sand's application for a patent (#2 above) was granted, Legal and registration costs incurred were $25,000. The patent runs for 18 years from the grant date. The manufacturing process will be useful to Sand for 10 years. Sand incurred $80,000 in successfully defending another of its patents in an infringement suit. The patent expires in 4 years. Sand incurred $200,000 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $99,000, is deemed C. d. e worthless. f. Sand paid Mexico Laboratories $52,000 for research work performed by Mexico under contract for Sand. Required 1 Record the journal entry on the date of the transaction 3 Record the iournal entry at December 31, 2021 (if no entry is required, write "none needed").

2.Discuss partnership under Income Tax Act (1967). b- If you were to form a partnership, what type of partnership would you go for? Comment and elaborate? 2. Based on the Malaysian Institute of Accountants (MIA), discuss 5 types and eligibility of double deduction? 3. Discuss the following: (a) Dodo Sdn Bhd is a retailing business company. It constructed a warehouse adjacent to its supermarket building. Can the company claim the warehouse as an industrial building? (b) Shine Bright Sdn Bhd is a company manufacturing silver plated products. The company owns a factory in Section 20 Shah Alam. In March 2001, the company rented a building near the factory at a monthly rental of RM25,000 for the purpose of carrying an approved industrial training. The company incurred RM230,000 to renovate the building and the renovation was approved by the Shah Alam authority. Discuss whether the renovation cost qualifies for industrial building allowance. (c) Dana Sdn Bhd incurred the following expenditure to construct a factory: RM 260,000 20,000 Cost of land Legal fees and stamp duty (RM6,000 relates to acquisition of land) Architect's fee Cost of approving plan Cost of demolishing house Construction cost (materials, labour and overheads) Road and car park within the factory complex Wiring and plumbing 26,000 10,000 70,000 2,000,000 60,000 70,000 Determine the qualifying building expenditure for the factory.

3.Sarved Help Save & E Cher For December 31, 20XX, the balance sheet of the Gardner Corporation is as follows: Current Assets Cash Accounts receivable Inventory Prepaid expenses Capital Assets Plant and equipment (gross) Less: Accumulated amortization Balance Sheet Liabilities $19,400 Accounts payable 15,600 Notes payable 33,400 Bonds payable 16, 100 Shareholders' Equity $254,000 Common stock 50,400 Retained earnings $19,400 28,300 58,500 $75,000 106,900 Net plant and equipment 203,600 Total assets $288,100 Total liabilities and shareholders' equity $288,100 Sales for 20XY were $222,000, with cost of goods sold being 58 percent of sales. Amortization expense was 12 percent of plant and equipment (net) at the beginning of the year. Interest expense for the bondis payable was 22 percent, while interest on the notes payable was 11 percent. These are based on December 31, 20XX, balances. Selling and administrative expenses were $31,400, and the tax rate averaged 18 percent. During 20XY, the cash balance and prepaid expense balance were unchanged. Accounts receivable and inventory each increased by 10 percent, and accounts payable increased by 32 percent. A new machine was purchased on December 31, 20XY, at a cost of $20,000. A cash dividend of $15.400 was paid to common shareholders at the end of 20XY. Also, notes payable increased by $3,012 and bonds payable decreased by 10,920. The common stock account did not change.

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