What is the capitalized cost of the acquired PPE if ABC Corp. made the following property acquisitions on Jan. 1, 2021: a. Acquired a piece of land in exchange for its shares. The shares have a total fair value of P5,000,000 while the fair value of the land is P5,100,000. b. Purchased a machinery on installment. The cash price is P800,000 while the installment price is P1,000,000. It required a down payment of P200,000 and the balance payable every Jan. 1 for 4 years, starting in the year 2022. 1. What is the amount of Capitalized Cost?
What is the capitalized cost of the acquired PPE if ABC Corp. made the following property acquisitions on Jan. 1, 2021: a. Acquired a piece of land in exchange for its shares. The shares have a total fair value of P5,000,000 while the fair value of the land is P5,100,000. b. Purchased a machinery on installment. The cash price is P800,000 while the installment price is P1,000,000. It required a down payment of P200,000 and the balance payable every Jan. 1 for 4 years, starting in the year 2022. 1. What is the amount of Capitalized Cost?
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity
Section: Chapter Questions
Problem 37RQSC
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What is the capitalized cost of the acquired PPE if ABC Corp. made
the following property acquisitions on Jan. 1, 2021:
a. Acquired a piece of land in exchange for its shares. The shares
have a total fair value of P5,000,000 while the fair value of the
land is P5,100,000.
b. Purchased a machinery on installment. The cash price is
P800,000 while the installment price is P1,000,000. It required
a down payment of P200,000 and the balance payable every
Jan. 1 for 4 years, starting in the year 2022.
1. What is the amount of Capitalized Cost?
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