Sorocaba Ltda. sold a building to Banco Janeiro on January 1, 2017, for 224,000 reais and then leased it back under a 10-year lease agreement, which is accounted for as an operating lease. The building had a carrying amount of 183,100 reais and a fair value of 224,000 reais on the date of sale.
Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes.
Required:
a. Prepare journal entries for this sale and leaseback for the years ending December 31, 2017, and December 31, 2018, under (1) IFRS and (2) U.S. GAAP.
I need help with JE # 4
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Sorocaba Ltda. sold a building to Banco Janeiro on January 1,
2017, for 224,000 reais and...
Sorocaba Ltda, sold a building to Banco Janeiro on January 1, 2017, for 221,000 reais and...
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CH11Question5
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Sorocaba Ltda, sold a building to Banco Janeiro on January 1, 2017, for 221,000 reais and then leased it back under a 10-year lease agreement, which is accounted for as an operating lease. The building had a carrying amount of 174,300 reais and a fair value of 221,000 reais on the date of sale. Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare...
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Rawl Corporation sold a building to a bank at the beginning of 2017 at a gain of $82,000 and immediately leased the building back for a period of four years. The lease is accounted for as an operating lease. The book value of building (net) is $525,000. Assume that a U.S.-based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore...
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CH11Question5
Parnell Company acquired construction equipment on January 1,
2017, at a cost of $72,000. The equipment was expected to have a
useful life of four years and a residual value of $11,000 and is
being depreciated on a straight-line basis. On January 1, 2018, the
equipment was appraised and determined to have a fair value of
$67,100, a salvage value of $11,000, and a remaining useful life of
three years. In measuring property, plant, and equipment subsequent
to acquisition...
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