Marjorie Company commenced operations at the beginning of the current year. The following costsare incurred by the entity:Payment for landTaxes in arrears on building on landDemolition of current building on land, net of salvage of P10,0001,000,00040,000100,000Survey before construction of new buildingContract price for factory building60,0005,000,000Architect fee230,000Payment to city hall for approval of building construction120,000Safety fence around construction siteSafety inspection on building35,00030,00020,000Removal of safety fence after completion of factory buildingNew fence surrounding the factoryDriveways, parking bays and safety lightingCost of trees, shrubs and other landscaping80,000550,000250,000The land and factory building should respectively be measured at

Land and building both are fixed assets. Land has no…

Answered: Mariorie Com an ations at the heginning…

Business

Accounting

Mariorie Com an ations at the heginning of the current vear The following cos

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 3PA: During the current year, Alanna Co. had the following transactions pertaining to its new office...

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Biliran Company incurred the following costs at the beginning of the current year: Cost of land 1,000,000 Cost of building Remodelling and repairs prior to occupancy 4,000,000 500,000 Escrow fee 100,000 Clearing, levelling and landfill Property tax for period prior to acquisition Real estate commission 250,000 150,000 300,000 What is the cost of building? a. 4,500,000 b. 4,740,000 C. 4,800,000 d. 4,940,000
Isabela Company commercial operations at the beginning of the current year. The following costs are incurred by the entity during the current year: Option fee for land acquired Option fee for land not acquired Taxes in arrears on building on land Payment for land Demotion of old building on land, net of salvage of P10, 000 10, 000 10, 000 50, 000 1, 000, 000 100, 000 Architect fee 230, 000 Payment to city hall for approval of building construction Contract price for factory building Safety fence around construction site Safety inspection on building Removal of safety fence after completion of factory building New fence surrounding the factory 120, 000 5, 000, 000 35, 000 30, 000 20, 000 80, 000 Driveways, parking bays and safety lighting a. How much is the cost of Land? b. How much is the cost of factory building? 550, 000
Investment Property: Subsequent Measurement: A building is accounted as Investment Property. It has a cost of P5,000,000, useful life of 15 years and an estimated residual value of P500,000. It had fair values as follows: Year end Fair Value 1 P4,200,000 2 P4,800,000 If the entity used the cost model, compute for the following: a. Annual Depreciation Expense b. Carrying value as of the end of Year 1 c. Carrying value as of the end of Year 2 If the entity used the fair value model, compute for the following: d. Gain/(Loss) from change in fair value – Year 1 e. Gain/(Loss) from change in fair value – Year 2 f. Carrying value as of the end of Year 2
At the beginning of the current year, Township Company purchased for Php5,400,000, including appraiser's fee of Php50,000, a warehouse building and the land on which it is located. The following data were available concerning the property: Current appraised Seller's original cost value Land 2,000,000.00 1,400,000.00 Building 3,000,000.00 2,800,000.00 Total 5,000,000.00 4,200,000.00 Township should record the Land at:
Isabela Company commercial operations at the beginning of the current year. The followingcosts are incurred by the entity during the current year:Option fee for land acquired 10, 000Option fee for land not acquired 10, 000Taxes in arrears on building on land 50, 000Payment for land 1, 000, 000Demotion of old building on land, net of salvage of P10, 000 100, 000Architect fee 230, 000Payment to city hall for approval of building construction 120, 000Contract price for factory building 5, 000, 000Safety fence around construction site 35, 000Safety inspection on building 30, 000Removal of safety fence after completion of factory building 20, 000New fence surrounding the factory 80, 000Driveways, parking bays and safety lighting 550, 000a. How much is the cost of Land?________________________b. How much is the cost of factory building?___________________________c. what is the rules in solving this problem?
The following costs were incurred by ABCDEFGH, Inc.. during 2020: July 1 Organization fees P120,000 July 2 Land site and old building 1,890,000 July 3 Option payments 250,000 July 20 Broker’s fees on property acquired 110,400 July 30 Cost of remodeling the building 60,000 August 30 Salaries of executives 360,000 December 21 Real property taxes 240,000 Additional information: The building acquired had a fair value of P450,000 while the land was currently appraised at P1,800,000 P50,000 of the option money paid were for properties not acquired. The executives had no participation on the remodeling of the building The property taxes were for the 2020 calendar year. How much is the cost of land? Group of answer choices 1,512,000 1,856,320 2,288,000 1,992,320
Under IFRS 15, assuming the outcome of construction can be estimated reliably, what is the realized gross loss to be recognized by MDC for the year ended December 31, 20x22? On July 1, 20x31, Torela Company, a construction company, entered into a contract to construct a commercial building for a customer on customer-owned land for promised consideration of P1,000,000 and a bonus of P200,000 if the building is completed within 24 months. An inception date, the entity expects total construction costs of P700,000 to complete the building. The entity accounts for the promised bundle of goods and services as a single performance obligation satisfied over time in accordance with paragraph IFRS 15 because the customer controls the building during construction. At contract inception, the entity cannot conclude that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur with respect to inclusion of bonus to contract price. Completion…
On January 1, 2021, EFG Company acquired a building for P1,200,000. Professional fees for legal services and property transfer taxes incurred on the acquisition amounted to P50,000. Start-up costs incurred amounted to P20,000. Operating losses incurred before the planned level of occupancy of the building is achieved amounted to P120,000. Materials labor and overhead incurred for repairs and renovation of the property before it was put to leasable condition amounted to P200,000. Abnormal amounts of wasted material, labor and other resources incurred in developing the property amounted to P60,000. The renovation and repairs were completed on March 31, 2021. The building has an estimated remaining useful life of 10 years with no residual value. EFG Company uses cost model and the straight-line method of depreciation for its investment property. The building has a fair value of P1,400,000 on December 31 ,2021 Required: How much is amount of investment property recognized on…
On July 1, 20x1, Ewell Corporation purchased factory equipment for ₱100,000. Residual value was estimated at ₱4,000. The equipment will be depreciated over ten years using the doubledeclining-balance method. Counting the year of acquisition as one-half year, Ewell should record 20x2 depreciation expense of 15,366 c. 18,000 16,000 d.19,200
At the beginning of the current year, CakeCompany purchased for P5,400,000, including appraiser's fee of P50,000, a warehouse building and the land on which it is located. The following data were available concerning the property: Land (Current appraised value)-P2,000,000 Land (Seller's original cost)-P1,400,000 Warehouse building (Current appraised value)- P3,000,000 Warehouse building (Seller's original cost)-P2,800,000 What is the initial measurement of the land?
PROBLEMS Problem 15-1 (AICPA Adapted) Trisha Company made the following soquinitions durinr the year: * Purchased for P6,400,000, ineluding appraiser fee of P60,000, warehoune building and the land on which it i located. The land had an appraised value of P2,000,000 and original cost of PL,400.000. The building had an apprnined value of Pa,000,000 and original coet of P2,800,000. * Purchased an office building and the Iand on which it is located for P7,600,000 cash and assumed an existing P2.b00,000 mortgage. Por realty tax purposes, the property is assesed at P9.600,000, 60% of which in allocated to the building. Acquired a tract of land in exchange for 25,000 shares of Trisha Company with P100 par value and a market prioe of PI20 per ahare on the date of sequisition. The last property tax bill indicated.ansessed value of P2,400,000 for the land. L. What in the total coet of land? a. 9,160,000 b. 8,500.000 e. 9,000,000 d. 8,660,000 2 What is the total cost of building? a. 8,760,000 b…
Write CAPITALIZED if the subsequent cost incurred SHALL FORM PART of the carrying amount of the PPE or EXPENSED OUTRIGHT if the subsequent cost incurred SHALL NOT FORM PART of the carrying amount of the PPE. Acquired safety equipment to be attached for one of the production equipment for P 150,000 as required by new law. Acquired five new machineries for new P 800,000 each. Rearranged the production PPEs in Factory A for P 500,000 to make it more presentable before the management team visits the factory. Rearranged the production PPEs in Factory B for P 400,000 to accommodate a newly purchased equipment that will make the production process faster and more efficient. Repaired one of the machineries for P 350,000 as part of factory’s annual examination. Repaired another machinery for P 275,000 to prolong its remaining useful life from five years to seven years. Replaced a significant part of a production equipment for P 900,000. The equipment has an original cost of P 4,000,000 and…