On January 1, 2020, the historical balances of the land and building of Twang Company are: Accumulated depreciation Cost Land P 50,000,000 Building 300,000,000 90,000,000 The land and building were appraised on same date and the revaluation revealed the following= Fair value Land P 80,000,000 Building 350,000.000

On January 1, 2020, the historical balances of the land and building of Twang Company are: Accumulated depreciation Cost Land P 50,000,000 Building 300,000,000 90,000,000 The land and building were appraised on same date and the revaluation revealed the following= Fair value Land P 80,000,000 Building 350,000.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In January 1, 2020, the following assets of Company A had the following corresponding values: Carrying amount EUL Sound Value Year acquired 5,400,000 5,750,000 *7.600.000 7,850,000 Machinery Equipment O 3.122.600 O 3.050.000 Ⓒ 2.988.000 Residual Value 3.837.500 500,000 400,000 10 12 The company decided to measure these properties using revaluation model. Full year depreciation is taken on the year of purchase. In January 1, 2022, the replacement cost of equipment was revalued at P5.100.000. What is the amount taken to profit or loss as a result of the revaluation on January 1. 2022? 2017 2016
At the beginning of the year 2019. Itlog Company has an investment property acquired at a cost of $ 2,000,000. On December 31, 2019, the fair value was $2,200,000 and on December 31, 2020, the fair value was $1,950,000. The property had a useful life of 25 years. Under the cost method and fair value method, what is the carrying value of the investment that should be carried in the balance sheet as of December 31, 2020?
PEARS Company owned three investment properties. Details of the properties are as follows: Initial Cost Fair Value Dec. 31, 2019 Fair Value Dec. 31, 2020 Property 1 2,700,000 3,200,000 3,500,000 Propert 2 3,450,000 3,000,000 2,800,000 Property 3 3,300,000 3,900,000 3,400,000 Each property had an estimated useful life of 50 years. The accounting policy is to use the fair value model for investment properties. What is the carrying value of the investment properties that should be presented in the 2020 statement of financial position?
On January 1, 2020, HOWLSCo. acquired an investment property at a total cost of P25,000,000. At December 31, 2020, the carrying value of the property in the company’s books is P30,000,000. On December 31, 2020, HOWLSdecided to use the property and immediately reclassified it as plant asset. 1.What would be the initial cost of the plant asset if it has a fair value of P2,000,000 at the date of conversion? 2.What amount of revaluation surplus should HOWLSrecognize at the time of conversion?
An entity accounted for land using the revaluation model. On October 1,2020, the entity classified the land as held for sale. At that date, thecarrying amount of the land was P5,000,000 and the balance in therevaluation surplus was P1,500,000. At the same date, the fair value of theland was estimated at P5,500,000. The estimated cost of disposal isP100,000. On December 31, 2020, the fair value less cost of disposal ofthe land did not change. On October 1, 2021, the land was sold forP7,000,000.What amount of OCI is classified to retained earnings in 2021? A. 1,500,000B. 2,000,000C. 500,000D. Zero
On January 1, 2021, Alma Company showed land with carrying amount of P10,000,000 and building with cost of P60,000,000 and accumulated depreciation of P18,000,000. The land and building were revalued on same date and revealed the fair value of land at P17,000,000 and the building at P70,000,000. The original useful life of the building is 20 years and depreciation is computed on the straight line. What is the revaluation surplus on December 31, 2021?
On March 1, 2020, the Ottoman Company purchased land, building, machinery and equipment for $2,000,000. According to independent appraisals, the fair values were $1,500,000 (Land), $1,200,000 (Building), $800,000 (Machinery), and $500,000 (Equipment). The following information is also provided: ASSET ESTIMATED RESIDUAL VALUE ESTIMATED USEFUL LIFE IN YEARS Land N/A N/A Building None 20 Machinery 10% of cost 10 Equipment $20,000 5 Required: Calculate depreciation expense on the building, machinery, and equipment for 2020. Show your calculations. Prepare the journal entries to record (i) depreciation on the portion of machinery sold on September 30, 2021 and (ii) the sale of machinery. Show all calculations before you prepare your journal entries. Use the below format for your journal entries. Date Accounts Debit Credit Sep 30, 2021…
Surgimed Ghana Ltd. acquired a property for GH¢4 million with annual depreciation of GH¢300,000on the straight line basis. At the end of the previous financial year at 31st December, 2019, whenaccumulated depreciation was GH¢1 million, a further amount relating to an impairment loss of$350,000 was recognised, which resulted in the property being valued at its estimated value in use.On 1st May, 2020, as a consequence of a proposed move to new premises due to the COVID 19restrictions, the property was classified as held for sale. At the time of classification as held for sale,the fair value less costs to sell was GH¢2·4 million. On 1st July, 2020, the property market hadimproved and the fair value less costs to sell was reassessed at GH¢2·52 million and at the year-endon the 31st December, 2020, it had improved even further, so that the fair value less costs to sell wasGH¢2·95 million. The property was sold on 5th January, 2021for GH¢3 million.RequiredThe directors of Surgimed Ghana Ltd.…
Bili Company acquired a building on January 1, 2019 for P 9,000,000. At that date the building had a useful life of 30 years. On December 31, 2019, the fair value of the building was P 9,600,000 and on December 31, 2020, the fair value is P 9,800,000. The building was classified as an investment property and accounted for under the cost model. What amount should be carried in the statement of financial position for the year ended 2020?. 8,700,000 8,400,000 9,000,000 9,800,000
Question 1:Michael Company acquired a depreciable asset at the beginning of 2020 at a cost of $30 million. On December 31, 2020, Madison gathered the following information related to this asset: Michael Company at December 31, 2020, the following information related to equipment: The fair value of the asset ( net selling price )…………………………………..$26.5 million Sum of future cash flows use of the asset………………………………….$25 million Present value of future cash flows from the use of the asset……………. 26 million Remaining useful life of the asset..............................9 years Requirements : Under IFRS The determination and measurement of impairment loss. Following journal entry would be made to reflect the impairment of this equipment in Dec 31, 2020.
On April 30, 2020, Mindful Company classifies a property in Southern Tagalog as held for sale. The carrying amount of the property on this date is P300,000,000 (cost of P400,00,000, accumulated depreciation of P60,000,000 and accumulated impairment loss of P40,000,000). The estimate of the fair value less cost to sell on this date is P280,000,000. On December 31, 2020, the estimate of the fair value less cost sell is P350,000,000. The sudden increase in the fair value is attributed to the increases in demand for properties in Southern Tagalog, when the region is earmarked as the Philippine Development Region by the government as the next phase for economic growth. What is the amount of impairment loss on April 30, 2020? What is the amount of impairment loss reversal on December 31, 2020?
Michael Company acquired a depreciable asset at the beginning of 2020 at a cost of $30 million. On December 31, 2020, Madison gathered the following information related to this asset Fair value of the asset (Net Selling Price) $26.5 million Sum of future cash flows from the use of the asset $25 million Present value of future cash flows $26 million The remaining useful life of the asset 9 years Required: Under IFRS: 1) The determination and measurement of impairment loss? 2) Following journal entry would be made to reflect the impairment of this equipment on December 31, 2020?