Answer is cincome from grant 1 9000000 10900000

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.Answer is (C).Income from grant 1 (9,000,000 / 10)900,000Income from grant 2(3,000,000 / 4)750,000Total income1,650,00026.Answer is (A).Specific borrowing (2,200,000 x 10% = 220,000 – 50,000)170,000General borrowing(800,000 x 12%)96,000Capitalized borrowing cost266,00027.Answer is (B).Allocated fair value(9,000,000 x 2/5)3,600,000Allocated property tax(375,000 x 2/5)150,000Payment to tenants100,000New wing750,000Remodeling200,000Cost of building4,800,00028.Answer is (A).900,000 + 250,000 + 150,000 – 50,000 = 1,250,00029.Answer is (B).Sound value8,000,000Carrying amount, 1/1/16 (6,000,000 – 1,200,000)(4,800,000)Revaluation surplus, 1/1/163,200,000Carrying amount, 1/1/19 (8,000,000 – 3,000,000)5,000,000Recoverable amount(2,600,000)Impairment loss2,400,000Revaluation surplus, 1/1/19(3,200,000 – 1,200,000) 2,000,000Revaluation surplus2,000,000Impairment loss400,000Accumulated depreciation2,400,00030.Answer is (B).Design cost of trademark1,700,000Legal registration fee200,000Registration with Intellectual Property Office100,000Total cost of trademark2,000,00031.Answer is (B).1,400,000 / 14 = 100,00032.Answer is (A).20,000,000 x 18/25 = 14,400,000 + 200,000 + 100,000 =14,700,00033.Answer is (A).Contingent liability to be disclosed only.34.Answer is (D).Interest income(5,000,000 x 12%)600,000Unrealized gain(6,000,000 – 5,380,000)620,000
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Chapter 20 / Exercise 6
South-Western Federal Taxation 2020: Individual Income Taxes
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Total income1,220,00035.Answer is (D).Cost5,000,000Accumulated depreciation, 1/1/14(4,800,000 x 12/15)(3,840,000)Carrying amount, 1/1/141,160,000Residual value(400,000)Depreciation, 2014 (last year)760,00036.Answer is (C).240,000 x 20 = 4,800,00037.Answer is (B).4,000,000 – 3,700,000 = 300,00038.Answer is (C).50,000 – 5,000 + 10,000 = 55,000 x 40 = 2,200,00039.Answer is (B).39Date39Interestexpense39Interestpaid39Amortization39Carryingamount391/1/14393939396,462,000396/30/1439323,10039360,0003936,900396,425,1003912/31/1439321,25539360,0003938,745396,386,3553939644,35539393940.Answer is (D).Proceeds from issue(8,000 x 105%)8,400,000Bonds ex-warrant(8,000 x 95%)(7,600,000)Share warrants outstanding800,00041.Answer is (B).Annual rent expense(117 x 350,000 = 40,950,000 / 10)4,095,0002014Rent expense(4,095,000 x 3/12)1,023,750Rent payable1,023,7502015Rent expense4,095,000Rent payable105,000Cash4,200,000Rent payable, 12/31/15(1,023,750 – 105,000) = 918,75042.Answer is (B).Interest expense(4,965,000 – 800,000 = 4,165,000 x 8%)333,200Depreciation(4,965,000 / 10)496,500Total expense829,700
43.Answer is (C).Gross profit(6,000,000 – 5,000,000)1,000,000Interest income(6,000,000 x 10%)600,000Total income1,600,000
44.Answer is (B).600,000 – (600,000 / 10) = 540,00045.Answer is (D).Carrying amount of the liability(10,000,000 + 1,200,000)11,200,000Carrying amount of the assets transferred(2,000,000+ 5,000,000)(7,000,000)Gain on extinguishment4,200,00046.Answer is (A).Current tax expense5,000,000Increase in deferred tax asset (1,000,000 – 800,000)(200,000)Decrease in deferred tax liability(450,000 – 600,000)(150,000)Total tax expense4,650,00047.Answer is (C).Retained earnings450,000Prepaid/accrued benefit cost450,000Prepaid/accrued benefit cost150,000Retained earnings150,000Net debit to retained earnings300,00048.Answer is (C).Current service cost2,000,000Interest expense1,000,000Interest income(900,000)Employee benefit expense2,100,000Remeasurement loss(600,000 – 900,000)(300,000)Decrease in PBO – remeasurement gain200,000Net remeasurement loss – OCI(100,000)Defined benefit cost(2,100,000 + 100,000)2,200,00049.Answer is (B).5,000,000 – 4,000,000 = 1,000,000
50.Answer is (B).Retained earnings, 1/1/143,000,000Appropriation for treasury(50,000 – 10,000 = 40,000 x 20)(800,000)Net income4,000,000Cash dividend(1,000,000)Retained earnings, unappropriated, 12/31/145,200,000
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South-Western Federal Taxation 2020: Individual Income Taxes
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Chapter 20 / Exercise 6
South-Western Federal Taxation 2020: Individual Income Taxes
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