On January 1, 2021, Entity A received land with fair of PHP 200,000 from the governmentconditioned on the construction of a building on the lot. Entity A started immediately theconstruction and it was completed on December 31, 2021 for a total cost of PHP 1,000,000. Thebuilding has an estimated useful life of 10 years and zero residual value.How much is the carrying amount of the building on December 31, 2022 under thefollowing presentation?Gross PresentationNet Presentationa. 1,000,000800,000b.900,000720,000с.800,000640,000d.800,000533,333

Solution: Gross Presentation of the land is 900,000 after deducting the depreciation expense for one…

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constr ruction and it was compl ng has an estimated usef How much is th following press

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...

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Question

On January 1, 2021, Entity A received land with fair of PHP 200,000 from the government
conditioned on the construction of a building on the lot. Entity A started immediately the
construction and it was completed on December 31, 2021 for a total cost of PHP 1,000,000. The
building has an estimated useful life of 10 years and zero residual value.
How much is the carrying amount of the building on December 31, 2022 under the
following presentation?
Gross Presentation
Net Presentation
a. 1,000,000
800,000
b.
900,000
720,000
с.
800,000
640,000
d.
800,000
533,333

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