Answer and Explanation:
The computation is shown below:
a) The adjusted basis for the land and the building at the acquisition date is
Land = $100,000
Building = $400,000
We recognized the purchase price of land and building
b. And, the adjusted basis for the land and the building at the end of 2019 is
Land = $100,000
Building is
= $400,000 - $4,708
= $395,292
We considered the cost recovery for the computation above
Answer:
cash 60,000 debit
note payable 60,000 credit
--to record issuance--
interest expense 1,000 debit
Amortizacion Land 34,000 debi
---to reocrd sale of receiptst
Explanation:
Interest payment:
principal x rate x time (being time and rate expressed in protion of a year
60,000 x 0.05 x 120/360 = 1,000
An easement that is acquired by a use that is hostile to the interests of the owner is an easement by <span>implication of law. An easement is a law to cross or use someone else's land for a specific purpose. This can relate to trespassing and being allowed on property that is not rightfully owned by you or given rights to cross the land. </span>
Answer:
Option B Change in accounting principle; retrospectively; required.
Explanation:
The reason is that the change is policies are considered in the international accounting standard IAS-8 Accounting policies, estimates and correction of errors. The standard says that the change in depreciation method is considered as a change in accounting policy which must be treated as retrospectively which means that the adjustments must be made to all the previous years using the same depreciation and must reflect the change in Changes in Wquity statement. This change in accounting policy as per the requirement s of the standard, must be disclosed in the notes to financial statements. Furthermore the changes in equity must only be opted if it increases the truth and fairness of the financial statement.
