Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following figures have been extracted from the

The following figures have been extracted from the accounting records of the Twitch Corporation on...

60.1K

Verified Solution

Question

Accounting

image

image

The following figures have been extracted from the accounting records of the Twitch Corporation on December 31, 2019: Cost Accumulated Depreciation 25-year leasehold factory P50,000,000 P10,000,000 15-year leasehold factory 30,000,000 10,000,000 On January 1, 2020 Twitch had its two leasehold factories revalued (for the first time) by an independent surveyor as follows: 25-year leasehold P52.000.000 15-year leasehold 18,000,000 Twitch depreciates its leaseholds on a straight-line basis over the life of the lease. Twitch depreciates its leaseholds on a straight-line basis over the life of the lease. The directors of Twitch are disappointed in the value placed on the 15-year leasehold. The surveyor has said that the fall in its value is due mainly to its unfavorable location, but in time the surveyor expects its value to increase. The directors are committed to incorporating the revalued amount of the 25-year leasehold into the financial statements, but wish to retain the historical cost basis for the 15-year leasehold. The carrying amount of the leasehold factories as of December 31, 2020 should be

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

Finance
1.2K views

Looking back on 4 March 2008 when the interest rate was set at 7.25% by RBA...

Biology
1.2K views

Part 2 MRSA Screening A methicillin resistant Staphylococcus aureus MRSA screen is a test that...

Physics
1.2K views

44 An insulated ring of radius 4m having a charge 91 2 x 10 5C...

Calculus
1.2K views

Let g(x) = x?8 + xDetermine the equation of the tangent line to g at...

Calculus
1.2K views

A kite is flying 83 ft off the ground and its string is pulled taut...

Accounting
1.2K views

Franco and Giada are trying to calculate their gross income. Which of the following items...

Accounting
1.2K views

Changes in current operating assets and liabilities-indirect method Victor Corporation's comparative balance sheet for current...

Accounting
1.2K views

IICETInkI TMMn Additional information: 1. A customer retumed defective goods of R5 750 . VAT...

Accounting
1.2K views

Manually calculate the compound interest on an investment of $ 7,500 at...

Accounting
1.2K views

Two accountants were discussing control activities and test of controls for payroll systems. The senior...

Accounting
1.2K views

When does the process end? Select one or more: a. When the Challenge is...

Accounting
1.2K views

Superior Printing, Inc. has provided its June bank statement and Cash T-account. The Controller has...