PERIODIC REGULAR Co. acquired a building on January 1, 20x1 for a total cost of ₱24,000,000 and classified it as investment property. PERIODIC Co. uses the fair value model for its investment property. On January 1, 20x5, when the carrying amount of the building is ₱16,000,000, the elevator in the building was replaced for a total cost of ₱3,200,000. It is impracticable to determine the fair value of the replaced part. The fair value of the building on December 31, 20x5 is ₱17,200,000. How much is the loss recognized during the year? please provide solution

Q: Gamjatang Inc. acquired a land and an old unusable building for P7,500,000. Gamjatang contracted…

A: The question is related to ascertainment of cost of acquisition of Property, Plant and Equipment.…

Q: The Oscar Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum…

A: Total cost  to be assigned = P20,000,000 + P240,000 Total cost  to be assigned = P20,240,000

Q: Broncos Corporation acquired the following assets associated with a manufacturing facility for a…

A: Computation of the Intial value of the patent is as follows :

Q: GGG Company ventured into construction of a condominium in Baguio which is rated as the largest…

A: IAS/IFRS 16 allowa an entity use either cost model or fair value model to record depreciation for a…

Q: Johnson acquired for a lumpsum price of P6,000,000 a piece of land and the building on it. The land…

A: Johnson acquired a piece of land and building = P6000000 Fair value of land = $4200000 Building =…

Q: Panay Company purchased land as a factory site for P2,400,000. The entity paid P240,000 to tear down…

A: The land is purchased at a fixed sum, and the costs of preparing the site for construction are…

Q: a.Se buys a team for experimentation and research for $100,000. The equipment will depreciate using…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Oman Drydock Company purchased a site near Barka for OMR 25000. In addition to the purchase price…

A: Cost of the asset = Purchase price + tax amount paid  + agent’s commission + legal and registration…

Q: XYZ acquired for a lumpsum price of P6,000,000 a piece of land and the building on it. The land and…

A: Ans. The demolition cost should be expensed in the year the asset is demolished. The old building…

Q: The Oscar Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum…

A: Total cost to be assigned = P20,000,000 + P240,000 Total cost to be assigned = P20,240,000

Q: enda Corporation purchased a building for $800,000. The current carrying amount of the building is…

A: Solution: Recoverable amount = higher of fair value or value in use = higher of 360000 or 320000  =…

Q: On 1 January 20X1, Barbosa Ltd purchased an item of plant for GHS 300,000 which was to be…

A: Tangible item is called PPE if it is use in manufacturing or trade of inventory and services or  for…

Q: . The cost incurred were as follows: Cost of trademark, P5,000,000 Expenditure on promoting the new…

A: Intangible assets: Intangible assets are those which does not have any physical existence but have…

Q: The Philippine government grants a huge parcel of land in Cordillera to an entity. The land has a…

A: Here discuss about the net effect of the profit and loss after made the grant of land and its…

Q: ABC Company acquired a property for speculation purposes with the intention of selling it at a…

A: When an asset satisfies the criteria of an investment property, it is first recorded as a capital…

Q: Gamjatang Inc. acquired a land and an old unusable building for P7,500,000. Gamjatang contracted…

A: Cost of Land = Purchase price + Cost incurred to demolish old building - Proceeds from Scrap…

Q: Johnson acquired for a lumpsum price of P6,000,000 a piece of land and the building on it. The land…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: Additional information: . The building acquired had a fair value of P450,000 while the land was…

A: For the purpose of capitalization of fixed assets, all costs that are incurred for purchase of…

Q: mmediately the construction and it was completed on December 31, 20x1 for a total cost of…

A: Government Grant is the financial assistance provided by the government to an entity to buy an asset…

Q: As of December 31, 2022, 380 lots were sold and the market value of each lot had increased to…

A: When there is a transfer of inventories to investment property at fair value then the difference…

Q: Simpson and Homer Corporation acquired an office building on three acres of land for a lump-sum…

A: Lets understand the basics. When land, building and furniture purchased cumulatively in single price…

Q: Air Indah Bhd purchases a landed property at a cost of RM 200,000,000. In the sale and purchases…

A: Investment Property is the property held to either to earn rentals or capital appreciation or both.…

Q: ABC Corp purchased land and building at a lump price of P6M. ABC demolished the building and…

A: All fixed assets in the business should be capitalised. Total costs incurred on acquisition and…

Q: In June 2023, Plane Company exchanged an old packaging machine, which had a cost ofP1,200,000 and…

A: Cost of old packaging machine= P1,200,000  Depreciation= 50% Market value of the old packaging…

Q: ABC Corp purchased land and building at a lump price of P6M. ABC demolished the building and…

A: The lump sum cost is allocated to assets on the basis of their fair value.

Q: Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price,…

A: 1.

Q: ABC Co. acquired land, buildings, and equipment from XYZ Co. at a lump-sum price of P1,800,000. ABC…

A: Answer Lum- sum price = P1,800,000 appraisal = P120,000

Q: Alabama Corp. acquired an investment property on January 2, 2022, at a total cost of P8 million. The…

A: Given that, Cost of investment property = P8,000,000  Useful life of investment property = 25 years…

Q: ABC Co. acquired land, buildings, and equipment from XYZ Co. at a lump-sum price of P1,800,000. ABC…

A: If the amount paid for purchasing more than one asset then the cost of the asset is determined by…

Q: On 1 May 20X2, Express Shipping Company (‘ESC’) paid $21,208,600 for land and a warehouse built on…

A: Proportionate cost of warehouse = $21,208,600×$11,361,750 $15,149,000 + $11,361,750 = $9,089,400…

Q: Gamjatang Inc. acquired a land and an old unusable building for P7,500,000. Gamjatang contracted…

A: Cost of Land = Purchase price + Cost incurred to demolish old building - Proceeds from Scrap…

Q: How much is the loss on the retirement of the old building? b. What would be the capitalized cost…

A: Depreciation is an accounting method where a fund is kept aside so that once the asset becomes…

Q: ABC acquired for a lumpsum price of P6,000,000 a piece of land and the building on it. The land and…

A: A capitalized cost is treated as an expense for a company that is shown in the cost basis of a long…

Q: UP CAF Company acquired a property for speculation purposes with the intention of selling it at a…

A: Investment property should be recognized in the books of accounts at amount which is spent to…

Q: f P2,500,000

A: The allocation cost is given as,

Q: Asura Co. purchased land and building for a lump-sum price of P48,000,000. The existing building…

A: Lump-sum purchase: - Lump-sum purchase occurs when different assets or a group of assets are…

Q: YCO F) XYZ Corporation purchased land and an office building for $2,800,000. The real estate…

A: Purchase Price of Land and office= $2800000 Fair Market Value of Land = $1000000 Fair Market value…

Q: The General Service Contractor Company paid$400,000 for a house and lot. The value of the landwas…

A: Depreciation is reduction in value of asset due to usage and time.

Q: 1. E. Adentwi Enterprises Ltd bought a machine for GH₵ 150,000 on 1st January 2019. It depreciates…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: ABC Corp purchased land and building at a lump price of P6M. ABC demolished the building and…

A: Cost of building refers to the cost which includes the purchase price which involves price paid to…

Q: Tacloban Company incurred the following costs at the beginning of the current year: cost of land,…

A:

Q: Garrett Corporation paid $300,000 to acquire land, buildings, and equipment. At the time of…

A: 1. Formulas:

Q: Blackpink Company purchased land with a building on it, for P2,280,000. It was reliably determined…

A: Here while analyzing the data it is understand that there is the purchase of land and building and…

Q: ABC acquired for a lumpsum price of P6,000,000 a piece of land and the building on it. The land and…

A: The following calculations are done for ABC Company.

Q: Use the following information for the next two questions: On January 1, 20x1, Entity A acquires a…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: Required: 1. What cost should the company assign to the land, buildings, and equipment,…

A:

Q: ABC Corp purchased land and building at a lump price of P6M. ABC demolished the building and…

A: The costs incurred to make the land available for use is included in the cost of land.

Q: In accordance with IAS 16 Property, Plant and Equipment, what was the profit on disposal to be…

A: