4. On January 1, 2015, PHANTOM LANCER INC., RIKI CORP and NAGA SIREN CORP. establish a joint undertaking to manufacture a product they agree to share equally. Each will contribute P200,000 into the operation; PHANTOM LANCER and RIKI are to contribute cash while NAGA SIREN is to contribute equipment with a cost of P185,000. The equipment has a remaining life of 10 years when contributed. a. Determine the amount of NAGA SIREN will show the Equipment in JO account in its balance sheet at January 1, 2015. A. B. P61,667 P50,000 A. B. C. D. b. Determine the amount of NAGA SIREN will show the Equipment in JO account in its balance sheet at December 31, 2015. P45,000 P55,000 P66,667 P65,000 C. D. P60,000 P58,800

4. On January 1, 2015, PHANTOM LANCER INC., RIKI CORP and NAGA SIREN CORP. establish a joint undertaking to manufacture a product they agree to share equally. Each will contribute P200,000 into the operation; PHANTOM LANCER and RIKI are to contribute cash while NAGA SIREN is to contribute equipment with a cost of P185,000. The equipment has a remaining life of 10 years when contributed. a. Determine the amount of NAGA SIREN will show the Equipment in JO account in its balance sheet at January 1, 2015. A. B. P61,667 P50,000 A. B. C. D. b. Determine the amount of NAGA SIREN will show the Equipment in JO account in its balance sheet at December 31, 2015. P45,000 P55,000 P66,667 P65,000 C. D. P60,000 P58,800

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 18PC

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