Required:For Minmin Company, how much was allocated to:i. Landii. Buildingiii. Machineryiv. Office equipmentv. Delivery equipment Situation 1: Minmin Company made the following individual cash purchases:Land and buildingMachinery and office equipmentDelivery equipmentAn appraisal disclosed the following fair values:LandBuildingMachineryOffice equipmentDelivery equipmentP 6,000,0001,800,000500,000LandBuildingMachineryP 1,000,0003,000,000800,000400,000350,000Situation 2: Afable Company acquired the assets of another entity with the following fair value:P 1,000,0005,000,0002,000,000The entity issued 60,000 shares with P100 par value in exchange. The share had aquoted price of P150 on the date of purchase of the property.Situation 3: A shareholder of WonWon Corporation gave the corporation a piece of land as aplant site. The fair value of this land is determined to be P500,000. Situation 4: YoYo Company paid cash for machinery, P900,000 subject to a 2% cash discount ifpaid within 15 days, and freight on machinery, P35,000. YoYo paid beyond the 15 day periodand therefore did not take the cash discount.Situation 5: LaLa Company acquired furniture and fixtures by issuing a P400,000 two yearnoninterest-bearing note. In similar transactions, the entity has paid 12% interest. Round offpresent value factors to three decimal places (e.g., 6.667)

Minmin company acquired some assets i.e land and building, machinery and equipment and delivery…

Answered: Required: For Minmin Company, how much…

Required: For Minmin Company, how much was allocated to: i. Land ii. Building iii. Machinery iv. Office equipment v. Delivery equipment

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.1AP

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Question

Required:
For Minmin Company, how much was allocated to:

i. Land
ii. Building
iii. Machinery
iv. Office equipment
v. Delivery equipment

Situation 1: Minmin Company made the following individual cash purchases:
Land and building
Machinery and office equipment
Delivery equipment
An appraisal disclosed the following fair values:
Land
Building
Machinery
Office equipment
Delivery equipment
P 6,000,000
1,800,000
500,000
Land
Building
Machinery
P 1,000,000
3,000,000
800,000
400,000
350,000
Situation 2: Afable Company acquired the assets of another entity with the following fair value:
P 1,000,000
5,000,000
2,000,000
The entity issued 60,000 shares with P100 par value in exchange. The share had a
quoted price of P150 on the date of purchase of the property.
Situation 3: A shareholder of WonWon Corporation gave the corporation a piece of land as a
plant site. The fair value of this land is determined to be P500,000.

Situation 4: YoYo Company paid cash for machinery, P900,000 subject to a 2% cash discount if
paid within 15 days, and freight on machinery, P35,000. YoYo paid beyond the 15 day period
and therefore did not take the cash discount.
Situation 5: LaLa Company acquired furniture and fixtures by issuing a P400,000 two year
noninterest-bearing note. In similar transactions, the entity has paid 12% interest. Round off
present value factors to three decimal places (e.g., 6.667)

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