Problem 12 On January 1, 2020 Machu, Inc. acquired mining rights near Cordillera for P20,000,000 for 10 years, there was no cash payment, instead Machu issued a 2-year non-interest bearing note. Since the Company's inception in 1956, the Company continued to restore the lands affected by its mining activities Management Expects restoration costs to be P2.000,000. Discount rates for similar instruments are as follows: 8% for 2 years and 12% for 10 years. On December 21, 2020, Machu was being sued by one of another corporation over a patent infringement. The Company's legal counsel finds it probable that Machu will be liable for P2.00,000 damages. Machu has a P5,000,000 comprehensive insurance which covers these type of situations. The insurance has a P300,000 deductible clause. How much is the total amount taken to the statement of comprehensive income as of December 31, 2020 (round off your answers to the nearest whole number)? Question 25 Machu has a P5,000,000 comprehensive insurance which covers these type of situations. The insurance has a P300,000 deductible clause. How much is the total amount taken to the statement of comprehensive income as of December 31, 2020 (round off your answers to the nea number)? D Question 25 Using the information in number 12. How much is the total current liabilities as of December 31, 2020?
Problem 12 On January 1, 2020 Machu, Inc. acquired mining rights near Cordillera for P20,000,000 for 10 years, there was no cash payment, instead Machu issued a 2-year non-interest bearing note. Since the Company's inception in 1956, the Company continued to restore the lands affected by its mining activities Management Expects restoration costs to be P2.000,000. Discount rates for similar instruments are as follows: 8% for 2 years and 12% for 10 years. On December 21, 2020, Machu was being sued by one of another corporation over a patent infringement. The Company's legal counsel finds it probable that Machu will be liable for P2.00,000 damages. Machu has a P5,000,000 comprehensive insurance which covers these type of situations. The insurance has a P300,000 deductible clause. How much is the total amount taken to the statement of comprehensive income as of December 31, 2020 (round off your answers to the nearest whole number)? Question 25 Machu has a P5,000,000 comprehensive insurance which covers these type of situations. The insurance has a P300,000 deductible clause. How much is the total amount taken to the statement of comprehensive income as of December 31, 2020 (round off your answers to the nea number)? D Question 25 Using the information in number 12. How much is the total current liabilities as of December 31, 2020?
Fundamentals of Financial Management (MindTap Course List)
14th Edition
ISBN:9781285867977
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter12: Cash Flow Estimation And Risk Analysis
Section: Chapter Questions
Problem 10P: REPLACEMENT ANALYSIS The Dauten Toy Corporation currently uses an injection molding machine that was...
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Transcribed Image Text:Question 24
Problem 12
On January 1, 2020 Machu, Inc. acquired mining rights near Cordillera for P20,000,000 for 10 years, there was no cash payment, instead Machu issued a
2-year non-interest bearing note. Since the Company's inception in 1956, the Company continued to restore the lands affected by its mining activities
Management Expects restoration costs to be P2,000,000. Discount rates for similar instruments are as follows: 8% for 2 years and 12% for 10 years.
On December 21, 2020, Machu was being sued by one of another corporation over a patent infringement. The Company's legal counsel finds it probable
that Machu will be liable for P2.00,000 damages.
Machu has a P5,000,000 comprehensive insurance which covers these type of situations. The insurance has a P300,000 deductible clause.
How much is the total amount taken to the statement of comprehensive income as of December 31, 2020 (round off your answers to the nearest whole
number)?
Question 25
Machu has a P5,000,000 comprehensive insurance which covers these type of situations. The insurance has a P300,000 deductible clause.
How much is the total amount taken to the statement of comprehensive income as of December 31, 2020 (round off your answers to the neare
number)?
Question 25
Using the information in number 12,
How much is the total current liabilities as of December 31, 2020?
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