Blackpink Company purchased land with a building on it, for P2,280,000. It was reliably determined that the building is worth twice as much as the land. Blackpink has the intention of using the old building hence, necessary remodeling at a cost of P800,000 were initiated. Also, Blackpink constructed driveways and sidewalks amounting to P204,000, fences of P100,000, and water system of P64,000. During the year, Blackpink also purchased machinery with a list price of P700,000. Freight on machinery purchased amounted to P8,000 while repairs to machinery due to damage during shipment amounted to P4,600. The manufacturer offered Blackpink 2% cash discount for the said machine, but due to cash constraint, it was not availed. 9) How much is the adjusted balance of the building? A . 1,520,000 B. 1,724,000 C. 2,320,000 D. 2,524,000 10) How much is the initial cost of the machine? A . 694,000 B. 698,600 C. 708,000 D. 712,600
Blackpink Company purchased land with a building on it, for P2,280,000. It was reliably determined that the
building is worth twice as much as the land. Blackpink has the intention of using the old building hence,
necessary remodeling at a cost of P800,000 were initiated. Also, Blackpink constructed driveways and
sidewalks amounting to P204,000, fences of P100,000, and water system of P64,000.
During the year, Blackpink also purchased machinery with a list price of P700,000. Freight on machinery
purchased amounted to P8,000 while repairs to machinery due to damage during shipment amounted to P4,600. The manufacturer offered Blackpink 2% cash discount for the said machine, but due to cash constraint,
it was not availed.
9) How much is the adjusted balance of the building?
A
.
1,520,000 B. 1,724,000 C. 2,320,000 D. 2,524,000
10) How much is the initial cost of the machine?
A
.
694,000 B. 698,600 C. 708,000 D. 712,600
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