On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which it is located. The following data were available concerning the property: Current Appraised Value Original Cost Land P2,200,000 P1,800,000 Warehouse P3,300,000 P3,000,000 Total P5,500,000 P4,800,000
Q: Calculate depreciation expense on the building, machinery, and equipment for 2020. Show your…
A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…
Q: At December 31, 2018, certain accounts included in the property, plant, and equipment section of…
A: Cost Account Land # 621 purchase price Land Commission to real estate agent…
Q: On lanuary 1, 2021, Contagious Company provided the following information related to the land and…
A: The revaluation surplus is the difference between book value and depreciated replacement value of an…
Q: The following costs were incurred by ABCDEFGH, Inc.. during 2020: July 1 Organization fees…
A:
Q: cost model. What amount should be carried in the statement of financial position as investment…
A: Definition: Cost model: It is an accounting policy for reporting the carrying value of the property…
Q: Maxine Corporation purchased an investment property on January 1, 2017 for a cost of $2,200,000. The…
A: Depreciation expense is related to the drop in the value of an asset periodically because of the…
Q: Rover Inc. purchased land for $118,000,000 in 2011. At December 31, 2020, an appraisal determined…
A: "Since you have asked multiple questions, we will solve first question for you. if you want any…
Q: On August 30, 2020, AAA Company purchased a tract of land for P12,000,000. AAA incurred additional…
A: Cost of land = P12,000,000 Additional cost = P3,000,000 Total cost = P15,000,000
Q: On January 1 , 2020 , Lazarus Company reported the following property, plant and equipment and…
A: GIVEN DATA On January 1 , 2020 , Lazarus Company reported the following property, plant and…
Q: On January 1, 2021, Entity A received land with fair of PHP 200,000 from the government conditioned…
A: Land value Net presentation=Total cost-Fair value=PHP 1,000,000-200,000=PHP 800,000
Q: On January 1, 2020, the historical balances of the land and building of Twang Company are:…
A: Appraised value of building (Fair value) = P350,000,000 Salvage Value…
Q: At December 31, 2019, certain accounts included in the property, plant, and equipment section of…
A: a. Prepare a detailed analysis of the changes in each of the following balance sheet accounts…
Q: On January 1, 2020, Contentious Company provided the following information related to the land and…
A: Any upward changes in the value of capital assets are deposited in a revaluation surplus, which is…
Q: Calculate depreciation expense on the building, machinery, and equipment for 2020. Show your…
A: Step1 Depreciation is the written down in the value of the assets.
Q: Ôn January 1, 2020, Pharoah Company purchased a varnishing machine for P6,000,000. The entity…
A: Grants means the amount received without any sale of product or providing any services. Government…
Q: On January 1, 2021, Alma Company showed land with carrying amount of P10,000,000 and building with…
A: Annual depreciation on building =P60,000,000 /20 years = P3,000,000 Life spent on January 1, 2021 =…
Q: On January 2, 2022, Milk Tea Company acquired a building costing P6,000,000. Milk Tea Company…
A: Impairment Gain: An asset is said to have suffered an impairment if its value has been permanently…
Q: ember 31, 2019, certain accounts included in the property, plant, and equipment section of Oriole…
A: Property, plant, and equipment consists of land, buildings, leasehold improvements, and equipment,…
Q: On January 1, 2019, Ginger Company purchased land and a building for a total cash price of…
A:
Q: On 30 June 2021, Wheel Ltd opted to adopt the revaluation model to measu land. According to AASB116,…
A: Answer:- AASB 116:- It is the accounting standard relating to the "Property, Plant &…
Q: What is the depreciation of the building for 2020?
A: Depreciation Expense = Cost/Number of Useful life In the given Depreciation before Valuation will…
Q: VIOLET Company acquired an investment property on March 31, 2019 for ₱4,830,000. In addition,…
A: Investment value:-It is an asset for the company where one person securely invests the amount in one…
Q: The following expenditures were incurred by an entity during 2021. A piece of land with a…
A: The answer is stated below:
Q: On 30 June 2022, the statement of financial position of Brimbank City Council showed the following…
A: The method which is used to adjust the book value of a fixed asset according to the market value or…
Q: On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which…
A: Particulars Current Appraised Value Original Cost Land P2,200,000 P1,800,000 Warehouse…
Q: Sadaf Oman Company purchased a land for RO 250,000 in 2010. In October 2020, the company Mold this…
A: Equity refers to the total value which is expected to return to a company's shareholders when all of…
Q: Quell Company purchased a varnishing machine for P3,000,000 on January 1, 2020. The entity received…
A: Explanation: Treatment of government grant If the government grants are given for the purchase of…
Q: On January 1,2015, Rekto Corporation acquired a building at a cost of $22,000,000. The building has…
A: Annual depreciation = (Cost of the assets - residual value)/ life of the assets = (P22,000,000 -…
Q: At December 31, 2019, certain accounts included in the property, plant, and equipment section of…
A: (a) 1. Particulars Amount Amount Balance at January 1, 2019 $309,520 Land site…
Q: On January 1, 2019, Alberta Company purchased land and a building for $1,120,000. At the time of the…
A: Journal entry for purchase includes a debit to the asset bought and a credit to cash (if paid in…
Q: What is the revaluation surplus on December 31, 2020?
A: Any Increase in the Value of the Asset from the cost , will considered in the Revaluation Surplus,…
Q: On December 31, 2021, LJK Co. classified its building with a historical cost of P1,700,000 and…
A: Carrying amount of asset = Historical cost - Accumulated depreciation As per PFRS 5 once non current…
Q: The D Company self constructed an asset for its own use. Construction started on January 1,2020 and…
A: Solution: Year 2020: Weighted-Average accumulated expenditure and interest capitalized Date…
Q: The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances…
A: calculation of depreciation are as follows
Q: On March 31, 2021, the Herzog Company purchased a factory complete with vehicles and equipment. The…
A: Depreciation is a non-cash expense which is reported in the books to record regular wear and tear of…
Q: On January 1,2015, ABC Corporation acquired a building at a cost of P 22,000,000. The building has…
A: Annual depreciation = (Cost of the assets - residual value)/ life of the assets = (P22,000,000 -…
Q: At November 1, 2021, the following existed in the records of Lauren Company:Plant and equipment…
A: In this question, we are required to compute the net amount that should appear in Lauren’s statement…
Q: Rhino Company, a real estate entity, had a building with a The building was used as offices of the…
A: Given information, Carrying amount of building =P20,000,000 Fair value of building =P35,000,000…
Q: The Nickle Company purchased an asset for P17,000 on January 2, 2021. The asset has an expected…
A: (1). N Company purchased as asset for $17,000 on January 2, 2021. The asset has an expected residual…
Q: On January 5, 2021, Lighter Company acquired a building. The building had an estimated useful life…
A: Sum of years' digits of useful life = 1+2+3+4+5+6+7+8+9+10 = 55 years Depreciation fraction of 2021…
Q: What are the costs of Land and Building, respectively? Apply the principles prior to the amendments…
A: PAS 16 mentions the recognition of the assets while including and deducting many items.
Q: On January 1,2015, ABC Corporation acquired a building at a cost of P 22,000,000. The building has…
A: Annual depreciation = (Cost of the assets - residual value)/ life of the assets = (P22,000,000 -…
Q: Tristen Company purchased a five-story office building on January 1, 2019, at a cost of $6,400,000.…
A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage ,…
Q: On February 1, 2020, Nelson Corporation purchased a parcel of land as a factory site for $320,000.…
A: Fixed Assets: It refers to the long-term assets having a useful life of more than a year which is,…
Q: On February 1, 2020, Sunland Company purchased a parcel of land as a factory site for $313000. An…
A: In the above question we have asked to calculate cost of land and new building of Sunland with the…
Q: On August 30, 2020, AAA Company purchased a tract of land for P12,000,000. AAA incurred additional…
A: Given: Value of land= P 12,000,000 Additional cost incurred= P 3,000,000
Q: On February 1, 2019, Edwards Corporation purchased a parcel of land as a factory site for $100,000.…
A: Solution:- Calculation of the amount should Edwards record the cost of the land and the new…
Q: On January 1, 2022, Alma Company showed land with carrying amount of P10,000,000 and building with…
A: Revaluation of assets and liabilities can be gone through on the time of, when there is a admission…
On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which it is located. The following data were available concerning the property:
|
|
Current Appraised Value |
Original Cost |
|
Land |
P2,200,000 |
P1,800,000 |
|
Warehouse |
P3,300,000 |
P3,000,000 |
|
Total |
P5,500,000 |
P4,800,000 |
At what amount should the warehouse be recorded?
Step by step
Solved in 2 steps
- ABC Ltd has the following land and buildings in its financial statements as at 30 June 2022: Residential land, at cost Factory land, at valuation 2020 Buildings, at valuation 2020 Accumulated depreciation At 30 June 2022, the balance of the revaluation surplus is $908 520, of which $681 390 relates to the factory land and $227 130 to the buildings. On this same date, independent valuations of the land and buildings are obtained. In relation to the above assets, the assessed fair values at 30 June 2022 are: Residential land, previously recorded at cost Factory land, previously revalued in 2020 Buildings, previously revalued in 2020 Required: Provide the journal entries to account for the revaluation on 30 June 2022. ABC Ltd classifies the residential land and the factory land as different classes of assets. 2,271,300 2,044,170 1,817,040 -227,130 2,498,430 1,589,910 2,044,170On April 1, Bramble Corp. purchased for $1629000 a tract of land on which a warehouse and office building was located. The following data were collected concerning the property: Current Assessed Valuation Vendor's Original Cost Land $560000 $510000 Warehouse 400000 370000 Office building 840000 672000 $1800000 $1552000 What are the appropriate amounts that Bramble should record for the land, warehouse, and office building, respectively? Land, $506800; warehouse, $362000; office building, $760200. Land, $510000; warehouse, $370000; office building, $672000. Land, $560000; warehouse, $400000; office building, $840000. Land, $516375; warehouse, $374625; office building, $680400.On April 1, Oriole Company purchased for $1548000 a tract of land on which a warehouse and office building was located. The following data were collected concerning the property: Current Assessed Valuation Vendor's Original Cost Land $610000 $560000 Warehouse 390000 360000 Office building 800000 684000 $1800000 $1604000 What are the appropriate amounts that Oriole should record for the land, warehouse, and office building, respectively?
- Company H started its operations in 2021 and made the following asset purchases: asset purchase date COST car 10/31/2021 $ 24,000 landscaping 8/25/2021 $ 2,200 office furniture 2/1/2021 $ 2,900 residential building 5/19/2021 $ 245,000 required: Determine the MACRS depreciation deductions for 2021 *and* 2022 for each of these assets.On April 1, Proton Corporation purchased for P855,000 a tract of land on which was located a warehouse and office building. The following data were collected concerning the property: Current Assessed Valuation Vendor's Original Cost Land P300,000 P280,000 Warehouse 200,000 180,000 Office building 340,000 P900,000 P800,000 What are the appropriate amounts that Proton should record for the land, warehouse, and office building, respectively? O Land, P299,250; warehouse, P192,375; office building, P363,375. O Land, P300,000; warehouse, P200,000; office building, P400,000. O Land, P280,000; warehouse, P180,000; office building, P340,000. O Land, P285,000; warehouse, P190,000; office building, P380,000. 400,000On April 1, Rover Corporation purchased for P855,000 a tract of land on which was located a warehouse and office building. The following data were collected concerning the property: Current Assessed Valuation Vendor's Original Cost P300,000 P280,000 200,000 180,000 400,000 340,000 P900,000 P800,000 What are the appropriate amounts that Rover should record for the land, warehouse, and office building, respectively? Land Warehouse Office building Land, P299,250; warehouse, P192,375; office building, P363,375. Land, P285,000; warehouse, P190,000; office building, P380,000. Land, P280,000; warehouse, P180,000; office building, P340,000. Land, P300,000; warehouse, P200,000; office building, P400,000.
- On 30 June 2021, Wheel Ltd opted to adopt the revaluation model to measure land. According to AASB116, applying the revaluation model, which of the following figures must be used to measure land on 30 June 2021: Financial Value At date: Amount Concept 30 June 2018 $500,000 Initial cost when purchased Selling price for land 30 June 2021 $950,000 30 June 2021 $900,000 Cost to purchase an identical block of land $800,000 Present Value of estimated cash inflows from using land 30 June 2021 Select one: a. $950,000 O b. $900,000 O c. $500,000 O d. $800,000On January 1, 2019, Alberta Company purchased land and a building for $1,120,000. At the time of the purchase, it was estimated that the building had a market value of $700,000. On January 5, Alberta installed a fence around the property at a cost of $7,000. Given this information, the journal entry to record the purchase of the land and building would include a) Debit to Land for $420,000 b) Debit to Land for $413,000 c) Debit to Land for $700,000 d) Debit to Land for $427,000On December 31, 2021, LJK Co. classified its building with a historical cost of P1,700,000 and accumulated depreciation of P1,020,000 as held for sale. All of the criteria under PFRS 5 are complied with. On that date, the land has a fair value of P525,000 and cost to sell of P35,000. 1. What is the carrying amount of the building at Dec. 31, 2021? 2. What is the FV less Cost to Sell? 3. Assuming the building was not sold in 2022. However, the exception to the one year requirement was met. On December 31, 2022 the FV less cost to sell of the building is P470,000. What is the amount of impairment loss?
- The Nickle Company purchased an asset for P17,000 on January 2, 2021. The asset has an expected residual value P1,000. The depreciation expense for 2021 and 2022 is shown next for three alternative depreciation methods: Year Method A Method B Method C 2021 P4,000 P6,400 P6,375 2022 4,000 4,800 3,984 Required Which depreciation method is the company using in each example? Compute the depreciation expense for 2023 and 2024 under each methodInvestment PropertyDEF Company owns land and building being used for its operations and administrative functions. The land and building are carried in its books using the cost model and have the following data at January 1,2023.Land:Cost - P10,000,000Fair value - 14,000,000Building:Cost -P20,000,000Accumulated depreciation -13,500,000Fair value - 9,000,000On this date, the company vacated the old building and occupied a newly constructed one located in the commercial area of the Central Business District. The old building is then reclassified as investment property using the fair value model. The company uses the fair value model in all of its other investment property.What is the amount of fair value gain reported in profit/loss resulting from the reclassification from owner occupied to investments property due to change in use of the property? a. P0 b. P2,500,000 c. P4,000,000 d. P6,500,000During the current year, Alanna Co. had the following transactions pertaining to its new office building. A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. B. What should Alanna Co. record on its books for the building?
