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- PLEMACOLA, Inc. sold a piece of land on January 1, 2021. Thecompany purchased the land for P1,000,000. PLEMACOLA received a3-year note of P1,500,000. The cash selling price of the land as of thisdate is P1,190,748. The imputed interest rate on this note is 8%.How much is the unamortized discount as of December 31, 2022?On January 1, 2020, ABC enters into a contract with a customer to transfer a license for a fixed fee if P400,000 payable in 2 equal annual payments starting Dec 31, 2020. The relevant discount rate is 15%. The license was transferred to the customer on Jan 1, 2021 and allows the customer the right over the intellectual property as it exists on grant date. Direct costs incurred during 2020 and 2021 are P34,000 and P58,000 respectively. On the other hand, indirect costs during the 2020,2021, and 2022 are P52,000, P24,000, and P33,000 in order. How much should ABC report as net profit for the year 2021?On May 31, 2020, A grants B the right to operate as a franchisee of "Sprite" for a nonrefundable upfront fee of P2,400,000 and 3% royalty fee based on B's annual sales. A in return will (1) assist B in locating the site, (2) provide supplies and equipment, and (3) allow B to use the tradename for 10 years. B's income for the year totaled P1,000,000. A has no performance obligation (PO) remaining as of year-end and was able to recognize income of P28,000 from PO#3. A determined that each PO is separate and distinct from one another and follows PFRS 15, accordingly. How much is the total revenue recognized by A for the year ended 2020?
- On January 1, 2020, Tom Co (A seller-lessee) sells a building to MacCo (an unrelated buyerlessor) for cash of CU2,000,000. The fair value of the building at that time is CU1,800,000; the carrying amount immediately before the transaction is CU1,000,000. At the same time, TomCo enters into a contract with MacCo for the right to use the building for 18 years, with annual payments of CU120,000 payable at the end of each year. The interest rate implicit in the lease is 4.5%, which results in a present value of the annual payments of CU1,459,200. The transfer of the asset to MacCo has been assessed as meeting the definition of a sale under IFRS 15. Discuss the implication of the transactions and state the journal entries on January 1, 2020On January 1, 2020, Tom Co (A seller-lessee) sells a building to MacCo (an unrelated buyerlessor) for cash of CU2,000,000. The fair value of the building at that time is CU1,800,000; the carrying amount immediately before the transaction is CU1,000,000. At the same time, TomCo enters into a contract with MacCo for the right to use the building for 18 years, with annual payments of CU120,000 payable at the end of each year. The interest rate implicit in the lease is 4.5%, which results in a present value of the annual payments of CU1,459,200. Discuss the implication of the transactions and state the journal entries on January 1, 2020On January 1, 2020, Tom Co (A seller-lessee) sells a building to MacCo (an unrelated buyerlessor) for cash of CU2,000,000. The fair value of the building at that time is CU1,800,000; the carrying amount immediately before the transaction is CU1,000,000. At the same time, TomCo enters into a contract with MacCo for the right to use the building for 18 years, with annual payments of CU120,000 payable at the end of each year. The interest rate implicit in the lease is 4.5%, which results in a present valueof the annual payments of CU1,459,200. The transfer of the asset to MacCo has been assessed as meeting the definition of a sale under PSAK 72.Discuss the implication of the transactions and state the journal entries on January 1, 2020
- On January 1, 2020, Tom Co (A seller-lessee) sells a building to MacCo (an unrelated buyerlessor) for cash of CU2,000,000. The fair value of the building at that time is CU1,800,000; the carrying amount immediately before the transaction is CU1,000,000. At the same time, TomCo enters into a contract with MacCo for the right to use the building for 18 years, with annual payments of CU120,000 payable at the end of each year. The interest rate implicit in the lease is 4.5%, which results in a present value of the annual payments of CU1,459,200. The transfer of the asset to MacCo has been assessed as meeting the definition of a sale under IFRS 15. Discuss the implication of the transactions and state the journal entries on January 1, 2020 for both the leasing activity and revenue made from the contract based on IFRS 15 and IFRS 16 — Leases.Bronx Corporation, a domestic corporation engaged in merchandising business, sold its parking lot for P3,500,000 payable on installment. The lot was previously acquired for P2,800,000. The buyer was required to make a down payment in the amount of P200,000. The buyer has outstanding unpaid balance of P2,700,000 as of December 31 of the taxable year 2020. Compute the gross income in 2020 using the installment method. a.P160,000 b.P40,000 c.P120,000 d.Installment method does not applyIn 2021, a merchandise was sold on instalment basis by ONB for P80, 000 at a gross profit of 25% on cost. During this year, a total of P42, 500, including interest of P12, 500 was collected on this contract. In 2021, no collection was made on this sale, and the merchandise was repossessed. The fair value of the merchandise is P34, 000. Reconditioning cost amounts to P4, 000. What is the gain (loss) on reposition? a. 10, 000 b. (6, 000) c. (14, 000) d. (10, 000)
- On July 1, 2020, Splish Inc. made two sales. 1. It sold land having a fair value of $909,120 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,430,514. The land is carried on Splish's books at a cost of $597,100. 2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $401,050 (interest payable annually). Splish Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest.Record the two journal entries that should be recorded by Splish Inc. for the sales transactions above that took place on July 1, 2020.On July 1, 2018, Apache Company sold a parcel of undeveloped land to a construction company for $3,000,000.The book value of the land on Apache’s books was $1,200,000. Terms of the sale required a down payment of$150,000 and 19 annual payments of $150,000 plus interest at an appropriate interest rate due on each July 1beginning in 2019. Apache has no significant obligations to perform services after the sale. How much grossprofit will Apache recognize in both 2018 and 2019 applying the installment sales method?On May 7, 2021, Jimin Corporation sold a tract of land for P70,000 that resulted in a P30,000 gain on the sale. PTD agreed to accept one payment of P35,000 on August 15 and a second payment of P35,000 on December 15. PTD had a calendar year-end. What amount of gain was reported during the second, third, and fourth quarters of the year from this sale?