Recover Co. has the following assets: Land used as plant site 50,000 Land and building classified as “held for sale assets” 780,00 0 Building used as office 500,00 0 Building rented out under an operating lease 420,00 0 Equipment being sold in the ordinary course of business 330,00 0 Office furniture 24,000 Fixtures and signage 10,000 Machinery 12,000 Automobiles (used by company officers)350,000 Delivery trucks (used by the shipping department) 420,000 Computers 70,000 Aircraft rented out to various clients 690,000 Dairy cattle (held to produce milk that is sold to customers) 10,000 Harvested milk 3,000 Apple trees (held to bear fruits that are sold to customers) 6,000 Harvested apples 2,000 How much is the total of assets classified as property, plant and equipment? a. 2,132,000 c. 2,142,000 b. 2,126,000 d. 2,148,000

Recover Co. has the following assets: Land used as plant site 50,000 Land and building classified as “held for sale assets” 780,00 0 Building used as office 500,00 0 Building rented out under an operating lease 420,00 0 Equipment being sold in the ordinary course of business 330,00 0 Office furniture 24,000 Fixtures and signage 10,000 Machinery 12,000 Automobiles (used by company officers)350,000 Delivery trucks (used by the shipping department) 420,000 Computers 70,000 Aircraft rented out to various clients 690,000 Dairy cattle (held to produce milk that is sold to customers) 10,000 Harvested milk 3,000 Apple trees (held to bear fruits that are sold to customers) 6,000 Harvested apples 2,000 How much is the total of assets classified as property, plant and equipment? a. 2,132,000 c. 2,142,000 b. 2,126,000 d. 2,148,000

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

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 6RE: Oz Corporation has the following assets at year-end: Patents (net), 26,000; Land, 50,000; Buildings,...

See similar textbooks

Similar questions

Summer Rain Co. has the following assets: Land sold in the ordinary course of business 1,000,000 Land used as plant site 5,000,000 Building under construction to used as new office 12,000,000 Building leased out under various operating leases 6,000,000 Land and building classified as ‘held for sale assets’ 5,000,000 Spare parts and minor tools (with average useful life of 1 yr.) 800,000 Equipment held for rental under various operating leases 1,200,000 Fixtures used in rendering services 500,000 Bearer animals 200,000 Bearer plants 100,000 How much is classified as property, plant and equipment?
16.Sunshine Company has the following assets:Land sold in the ordinary course of business 1,000,000Land used as plant site 5,000,000Building under construction to be used as new office 12,000,000Building leased out under various operating leases 6,000,000Land and building classified as "held for sale assets" 5,000,000Spare parts and minor tools (with average useful life of 1 yr) 800,000Equipment held for rental under various operating leases 1,200,000Fixtures used in rendering services 500,000Bearer animals 200,000Bearer plants 100,000How much is classified as property, plant and equipment? 18,800,000 24,800,000 27,900,000…
Sunshine Company has the following assets:Land sold in the ordinary course of business 1,000,000Land used as plant site 5,000,000Building under construction to be used as new office 12,000,000Building leased out under various operating leases 6,000,000Land and building classified as "held for sale assets" 5,000,000Spare parts and minor tools (with average useful life of 1 yr) 800,000Equipment held for rental under various operating leases 1,200,000Fixtures used in rendering services 500,000Bearer animals 200,000Bearer plants 100,000How much is classified as property, plant and equipment? a. 18,800,000 b. 24,800,000 c.…
On January 1, 20X2, Sansa Company purchases two (2) separate sets of assets and activities from thirdparties, as follows:i. A manufacturing plant of Arya Company. The set of assets acquired and liabilities assumed are as follows:Plant premise P100,000,000Machinery 60,000,000Equipment 30,000,000A mortgage loan secured on the plant premise 120,0000Sansa will continue to employ the existing employees of the manufacturing plant and will pay them thesame salaries as before. The above manufacturing plant is a cash-generating unit that generatesoutputs that are sold to outside customers. Sansa pays a cash consideration of P100 million to AryaCompany.ii. A set of assets and liabilities of Bron Company.Plant premise P100,000,000Machinery 60,000,000Equipment 30,000,000A mortgage loan secured on the plant premise 120,0000The vendor will retrench the existing employees of the factory and pay their termination benefits. The setof assets is not capable of generating independent cash flows. However,…
On January 1, 20X2, Sansa Company purchases two (2) separate sets of assets and activities from thirdparties, as follows:i. A manufacturing plant of Arya Company. The set of assets acquired and liabilities assumed are as follows:Plant premise P100,000,000Machinery 60,000,000Equipment 30,000,000A mortgage loan secured on the plant premise 120,0000Sansa will continue to employ the existing employees of the manufacturing plant and will pay them thesame salaries as before. The above manufacturing plant is a cash-generating unit that generatesoutputs that are sold to outside customers. Sansa pays a cash consideration of P100 million to AryaCompany.ii. A set of assets and liabilities of Bron Company.Plant premise P100,000,000Machinery 60,000,000Equipment 30,000,000A mortgage loan secured on the plant premise 120,0000The vendor will retrench the existing employees of the factory and pay their termination benefits. The setof assets is not capable of generating independent cash flows. However,…
On January 1, 20X2, Sansa Company purchases two (2) separate sets of assets and activities from third-parties, as follows:i. A manufacturing plant of Arya Company. The set of assets acquired and liabilities assumed are as follows:Plant premise P100,000,000Machinery 60,000,000Equipment 30,000,000A mortgage loan secured on the plant premise 120,0000Sansa will continue to employ the existing employees of the manufacturing plant and will pay them the same salaries as before. The above manufacturing plant is a cash-generating unit that generates outputs that are sold to outside customers. Sansa pays a cash consideration of P100 million to Arya Company.ii. A set of assets and liabilities of Bron Company.Plant premise P100,000,000Machinery 60,000,000Equipment 30,000,000A mortgage loan secured on the plant premise 120,0000The vendor will retrench the existing employees of the factory and pay their termination benefits. The set of assets is not capable of generating independent cash flows.…
40-Total value of land and building is OMR 360,000 as on June 2021.The company uses only OMR 300,000 worth of land and building in its’ operating activities. How the land and building should be reported in the classified statement of financial position? a. Property, plant and equipment OMR 300,000 and long term investment OMR 60,000 b. Long term investment OMR 360,000 c. Property, plant and equipment OMR 60,000 and long term investment OMR 300,000 d. Property, plant and equipment OMR 360,000
On January 1, 20x1, Horror Co. acquired a building costing ₱1,200,000. Professional fees for legal services and property transfer taxes incurred on the acquisition amounted to ₱50,000. Start up cost incurred amounted to ₱20,000. Operating losses incurred before the planned level of occupancy of the building is achieved amounted to ₱120,000. Materials, labor and overhead incurred for repairs and renovation of the property before it was put to leasable condition amounted to ₱200,000. Abnormal amounts of wasted material, labor and other resources incurred in developing the property amounted to ₱60,000. The renovation and repairs were completed on March 31, 20x1. The building has an estimated useful life of 10 years with no residual value. Horror Co. uses the cost model and the straight-line method of depreciation for its investment property. The building has a fair value of ₱1,400,000 on December 31, 20x1. Requirement: How much is the investment property recognized on January 1, 20x1?
2. On February 1, 20X1, ABC Corporation purchased a parcel of land as a factory site (unusable) for P320,000. An old building on the property was demolished and construction begun on a new warehouse that was completed April 15, 20X2. Costs incurred on the construction project are listed below. Demolition of old building - P 21,000; Architect's fees - 31,700; Legal fees--title investigation - 4,100; Construction costs - 950,000; Imputed interest based on stock financing - 14,000; Landfill for building site - 19,300; Clearing of trees from building site - 9,600; Temporary buildings used for construction activities - 29,000; Land survey - 4,000; Excavation for basement - 13,200; Salvage materials from demolition sold for - P1,800; Timber sold for P3,300. Determine the cost of the building
28. A company paid $150,000, plus a 6% commission, and $4,000 in closing costs for a property. The property included land appraised at $87,500, land improvements appraised at $35,000, and a building appraised at $52,500. What should be the allocation of this property's costs in the company's accounting records? A. Land $84,100; Land Improvements, $30,000; Building, $48,900B. Land $75,000; Land Improvements, $30,800; Building, $46,200C. Land $81,500; Land Improvements, $32,600; Building, $48,900D. Land $82,700; Land Improvements, $32,600; Building, $47,700
On December 1, B Company purchased a 4,000,000 tract of land for a factory site. The entity razed an old building on the property and sold the materials salvaged from the demolition. The entity incurred additional costs and realized a salvage proceeds during December as follows: Demolition of old building 200,000 Legal fees for the purchased contract and recording of ownership 150,000 Title guarantee insurance 50,000 Proceeds from sale of salvaged materials 20,000 In the December 31 statement of financial position, what is the carrying amount of the land?
30.The following expenditures were incurred by an entity during 2021. A piece of land with a dilapidated building was acquired and immediately construction of a new building began. Upon completion of the building, the entity acquired several pieces of machinery for use in its operations.Cash paid on purchase of land-P4,500,000Mortgage assumed on the land bought-P5,000,000Legal fees and title verification expenses-P50,000Payment to squatters on the property to vacate the premises -P100,000Demolition costs incurred-P80,000 Proceeds from sale of salvaged materials-P45,000 Paid to contractor for a building erected-P12,000,000Building permit fees-P20,000Excavation expenses-P50,000Architect’s fees-P150,000Capitalized interest cost on building constructed-P18,000 What are the costs of Land and Building, respectively? Apply the principles prior to the amendments to PAS 16 that is effective on January 1, 2022. a. 9,685,000 and 12,238,000 b. 9,650,000 and 12,273,000 c. 9,550,000 and…