Mode 6- Lump Sum Acquisition, With Direct Attributable Cost Numbers 14 and 15 On June 1. Thick Company acquired a real property by issuing 35,360 shares of its P100 par value ordinary shares. The shares were selling on the same date at P125. A mortgage of P4,000,000 was assumed by Thick on the purchase. Moreover, the company paid P180,000 of real property taxes in the prior years. Twenty percent of the purchase price should be allocated to the land and the balance to the building. In order to make the building suitable for the use of Thick, remolding costs had to be incurred in the amount of P900,000. This however necessitated the demolition of a portion of the building, which resulted in recovery of salvage material sold for P30,000. Parking lot cost the company P320,000 while repairs in the main hall were incurred at P45,000 prior to its use. 10) The correct cost of the land should be A 1.664,000 B. 1.720,000 C. 2,040,000 D. 2.400,000 11) The correct cost of the building should be A 6,330,000 B. 7.795,000 C. 7,750,000 D. 7,570,000

Mode 6- Lump Sum Acquisition, With Direct Attributable Cost Numbers 14 and 15 On June 1. Thick Company acquired a real property by issuing 35,360 shares of its P100 par value ordinary shares. The shares were selling on the same date at P125. A mortgage of P4,000,000 was assumed by Thick on the purchase. Moreover, the company paid P180,000 of real property taxes in the prior years. Twenty percent of the purchase price should be allocated to the land and the balance to the building. In order to make the building suitable for the use of Thick, remolding costs had to be incurred in the amount of P900,000. This however necessitated the demolition of a portion of the building, which resulted in recovery of salvage material sold for P30,000. Parking lot cost the company P320,000 while repairs in the main hall were incurred at P45,000 prior to its use. 10) The correct cost of the land should be A 1.664,000 B. 1.720,000 C. 2,040,000 D. 2.400,000 11) The correct cost of the building should be A 6,330,000 B. 7.795,000 C. 7,750,000 D. 7,570,000

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 19E

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3.On August 20X1, ABC Company bought 50,000 shares of Z Corp at P300,000. Commission and taxes related to the acquisition were P15,000. ABC designated the shares as held for trading. On Dec 31, 20X1 Z Corp's share had a fair value of P350,000 On Jan 12, 20X2, the shares were sold at P7.10 per share. Transaction costs related to the sale were P6,000. How much is the unrealized gain at Dec 31, 20X1? 1,000 15,000 50,000 65,000
14.On August 20X1, ABC Company bought 50,000 shares of Z Corp at P300,000. Commission and taxes related to the acquisition were P15,000. ABC designated the shares as held for trading. On Dec 31, 20X1 Z Corp's share had a fair value of P350,000 On Jan 12, 20X2, the shares were sold at P7.10 per share. Transaction costs related to the sale were P6,000. How much is the realized gain (loss) on sale? 0 (1,000) 5,000 (11,000)
18.On August 20X1, ABC Company bought 10,000 shares of Z Corp at P120,000. Commission and taxes related to the acquisition were P5,000. On Dec 31, 20X1 Z Corp's share had a fair value of P14 per share. On Jan 4, 20X2 half of the shares were sold at P15 per share. Transaction costs related to the sale were P3,500. ABC Company's investment model is to hold collect and sell.How much is the gain (loss) on sale at Jan 20X2? 15,000 11,500 5,000 1,500
11. On Jan 1, 20X1, ABC purchased 24,000 shares of XYZ for P200,000 and paid commission of P10,000 on the acquisition. ABC designated the investment to be measured at FVOCI. On Dec 31, 20X1, the shares were quoted at P20 per share. On Jan 10, 20X2 were sold for P30 per share incurring P12,000 transaction costs. What amount of gain (loss) should ABC recognize on Dec 31, 20x1 and Jan 10, 20X2 respectively? 270,000; 228,000 280,000; 228,000 280,000 282,000 293,000; 220,000
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