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

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

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

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...

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On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000
Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. The receipts are identified by an asterisk. A. Fee paid to attorney for title search............................................ 3,600 B. Cost of real estate acquired as a plant site: Land................................ 720,000 Building (to be demolished)........... 60,000 C. Finder's fee paid to real estate agency.......................................... 23,400 D. Delinquent real estate taxes on property, assumed by purchaser................. 15,000 E. Architect's and engineer's fees for plans for new building....................... 75,000 F. Cost of removing building purchased with land in (B)............................ 10,000 G. Proceeds from sale of salvage materials from old building....................... 3,400 H. Cost of filling and grading land................................................ 18,000 1. Premium on one-year insurance policy during construction...................... 8,400 J. Money borrowed to pay building contractor.................................... 800,000 K. Special assessment paid to city for extension of water main to the property....... 13,400 L. Cost of repairing windstorm damage during construction....................... 3,000 M. Cost of repairing vandalism damage during construction........................ 2,000 N. Cost of trees and shrubbery planted........................................... 14,000 0. Cost of paving parking lot to be used by customers............................. 21,600 P. Interest incurred on building loan during construction.......................... 40,000 Q. Proceeds from insurance company for windstorm and vandalism damage........ 4,500 R. Payment to building contractor for new building................................ 800,000 S. Refund of premium on insurance policy (1) canceled after 10 months............. 1,400 Instructions 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Indicate receipts by an asterisk. Identify each item by letter and list the amounts in columnar form, as follows: Item Land Land Improvements Building Other Accounts 2. Determine the amount debited to Land. Land Improvements, and Building. 3. The costs assigned to the land, which is used as a plant site, will not be depreciated, while the costs assigned to land improvements will be depreciated. Explain this seemingly contradictory application of the concept of depreciation. 4. What would be the effect on the income statement and balance sheet if the cost of paving the parking lot of 21,600 [payment (0)] was incorrectly classified as Land rather than Land Improvements? Assume Land Improvements are depreciated over a 10-year life using the double-declining-balance method.
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 Clear my choice
16. On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which it is located. The following data were available concerning the property: Current Appraised Value Original Cost Land P2,200,000 P1,800,000 Warehouse P3,300,000 P3,000,000 Total P5,500,000 P4,800,000 At what amount should the warehouse be recorded?
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…
18. The following costs were incurred by ABCDEFGH, Inc.. during 2020: July 1 Organization fees P120,000 July 2 Land site and old building 1,890,000 July 3 Option payments 250,000 July 20 Broker’s fees on property acquired 110,400 July 30 Cost of remodeling the building 60,000 August 30 Salaries of executives 360,000 December 21 Real property taxes 240,000 Additional information: The building acquired had a fair value of P450,000 while the land was currently appraised at P1,800,000 P50,000 of the option money paid were for properties not acquired. The executives had no participation on the remodeling of the building The property taxes were for the 2020 calendar year. How much is the cost of land? Group of answer choices 1,512,000 1,992,320 2,288,000 1,856,320
36.The following data relate to a piece of equipment owned by Xyza Company, a calendar-year company. The company's policy is to depreciate its property, plant and equipment items to the nearest month.Acquisition date-July 1, 2020 Cost-P125,000 Estimated residual value–P5,000 Estimated service life–5 yearsWhat is the depreciation expense for the equipment for the year ended December 31, 2021 under the -(1) sum-of-the years' digits method and (2) double declining balance method. a. (1) 40,000 and (2) 50,000 b. (1) 36,000 and (2) 40,000 c. (1) 40,000 and (2) 48,000 d. (1) 40,000 and (2) 36,000
29. Analyzing Fixed Assets Pitt reported the following information for 2021 and 2022: 2021 2022 Property, plant, and equipment, cost $550,000 $ 550,000 Accumulated depreciation 170,000 220,000 Net sales 4,600,000 Depreciation expense 50,000 Required: Compute Pitt's tangible capital asset turnover ratio and the average age of tangible depreciable capital assets. Round "Tangible Capital Asset Turnover" to two decimal places and "Average Age of Tangible Depreciable Capital Asset" to one decimal place.
Po34. Coronado Landscaping Limited has determined that its lawn maintenance division is a cash-generating unit under IFRSThe carrying amounts of the division's assets at December 31, 2023, are as follows : Land $27,000 Building56,000 Equipment36,000 Vehicles19,000 $138,000 The lawn maintenance division has been assessed for impairment and it is determined that the division's value in use is $124,200, fair value less costs to sell is $93,000 , and undiscounted future net cash flows are $162,000.
22.Sponge Co. incurred research and development costs in 2021 as follows: Equipment acquired for use in various research and development projects 975,000 Depreciation on the above equipment 135,000 Materials used 200,000 Compensation costs of personnel 500,000 Outside consulting fees 150,000 Indirect costs appropriately allocated 250,000The total research and development costs charge in Sponge's 2021 statement of profit or loss should be: 850,000 1,085,000 1,235,000 1,825,000
15 - The business purchased a machine for 24.000 TL on 01.06.2020 . The scrap value of the machine is 4.000 TL and its economic life is 5 years. The entity uses the straight-line method of depreciation. According to the information above , what is the amount of depreciation that should be allocated for 2020 ? a) 4,000 TL B) 8.800 TL NS) 5.700 TL D) 8.000 TL TO) 4.400 TL
9. The entity incurred the following in exploring a natural resources on January 1,2021Acquisition cost of the land P10,000,000Development cost 5,000,000Exploration cost 6,000,000Purchase of equipment 3,000,000The entity expects to mine a total of 5,000,000 tons of natural gas, it is also estimated that 1,000,000 of natural gas will be extracted every year. The useful life of the equipment is 6 years, the equipment is used over a several project not just in that specific natural resources. On 2021 the entity extracted 1,500,000 tons of natural gas. How much is the depreciation expense for the year?Group of answer choices500,0001,500,000600,000900,000