Spring Day Ltd Has a Piece of Equipment That It

question 45

Multiple Choice

Spring Day Ltd has a piece of equipment that it has revalued to its fair value of $90,000 this period. It originally cost $80,000 and the accumulated depreciation for both accounting and tax purposes is $20,000. There is no intention to sell the equipment in the near future. The tax rate is 30 per cent. What is the journal entry to reflect the revaluation's tax implications?

Understand the concept of sexual harassment and strategies for addressing it in the workplace.

Analyze the impact of increased female leadership in the business world.

Identify challenges faced by family-oriented individuals in the workplace and solutions implemented by progressive organizations.

Describe various types of flexible work schedules and evaluate their effectiveness in the current economic and work climate.

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Definitions:

Owner's Equity

The residual interest in the assets of a company after subtracting liabilities, often referred to as shareholder's equity in a corporation.

Liabilities

Financial obligations or debts that a company or individual owes to others.

Asset

A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

General Ledger

A record of all financial transactions divided into accounts and usually compiled at the end of each month.