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
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- Tacloban Company incurred the following costs at the beginning of the current year: cost of land, P1,000,000; cost of building, P4,000,000; remodeling and repairs prior to occupancy, P500,000; escrow fee, P100,000; clearing, leveling and landfill, P250,000; property tax for period prior to acquisition, P150,000; real estate commission P300,000. What is the cost of the building?Leni Company incurred the following costs 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 Demolition of old building, net of salvage of P10,000 10,000 10,000 50,000 1,000,000 100,000 Architect fee 230,000 120,000 5,000,000 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 building New fence surrounding the factory Driveways, parking bays and safety lighting 35,000 30,000 20,000 80,000 550,000 What is the cost of land and building, respectively? (Format of answer should be LAND: 1234567; BUILDING: 1234567)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
- 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, 000On 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.19,200MNO Corporation had the following information regarding its fixed assets: Beginning of the year: $500,000 Additions during the year: $100,000 Disposals during the year: $50,000 Accumulated depreciation at the beginning of the year: $200,000 Depreciation expense for the year: $50,000 Calculate the net book value of fixed assets at the end of the year.
- A bulding acquired at the beginring of the year at a cost of $2,200,000 has an estimated residual value of s400,000 and an estimated useful te of 20 years. Determine the following (a) The depreciable cost (b) The straight-line rate (e) The annual straight-line deprecation7. Germs Co. determined the following information for the 24,000,000 Revaluation model - Cost approach purpose of revaluing its building: Historical cost Accumulated depreciation 7,680,000 8 years Actual life 32,000,000 On 5 years P4, 20 years Replacement cost Effective life Remaining economic life Depreciation method SLM ife 30% th Income tax rate Requirements: a. Compute for the revaluation surplus, net of tax. b. Provide the entry to record the revaluation surplus using () Proportional method and (2) Elimination method. c. Determine the revised Re annual depreciation after tre revaluation.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:
- A building acquired at the beginning of the year at a cost of $1,630,000 has an estimate residual value of $340,000 and an estimate life of 10 years. Determine the following. a. The depreciable cost $ b. The straight line rate % c. The annual straight line depreciation $During the current year, Sheena Company had the following transactions pertaining to its property plant and equipment: Purchase price of Land – 600,000 Legal fees for contract to purchase Land – 20,000 Architect fee – 80,000 Demolition of old building on site – 50,000 Sale of scrap from old building – 30,000 Construction cost of new building (fully completed) – 3,500,000 I. In Sheena Company’s year-end statement of financial position, what amount should be reported as cost of the Land? 600,000 620,000 640,000 650,000 II. In Sheena Company’s year-end statement of financial position, what amount should be reported as cost of the Building? 3,500,000 3,520,000 3,580,000 3,630,000 III. Assume that the Building has an estimated useful life of 50 years and salvage value of P50,000, Sheena Company’s first year depreciation using the straight line method would be 70,600 71,600 141,200 143,200 Assume that the Building has an estimated useful life of 50 years and…Western Wholesale Foods incurs the following expenditures during the current fiscal year. How should Western account for each of these expenditures? Capitalize and depreciate over the useful life of the asset. OR Expense in the period incurred. 1. Salaries for the repair technicians, $154,000 2. Remodeling of the executive offices, $84,700 3. Annual maintenance costs related to its machinery, $70,400 4. Improvement of the production line resulting in an increase in productivity, $33,800 5. Addition of a sprinkler system to the manufacturing facility to reduce the risk of fire damage, $37,900