XYZ Co. acquired land with fair value of P900,000 by issuing 10,000 shares with par value of P9 per share and quoted price of P81 per share. 1. What is the initial cost of land? a. P810,000 P900,000 b. c. P90,000
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- 6. Tulip Company purchased the net assets of another entity for P2,000,000. On the sate of the transaction, the acquire had P800,000 of liabilities The assets of the acquiree at fair value were $1,900,000 for current assets and P1,600,000 for noncurrent assets. What is the amount of gain on bargain purchase? a. P 700,000 b. P-700,000 c. P 800,000 d. P-800,000What is the capitalized cost of the acquired PPE if ABC Corp. madethe following property acquisitions on Jan. 1, 2021: a. Acquired a piece of land in exchange for its shares. The shareshave a total fair value of P5,000,000 while the fair value of theland is P5,100,000. b. Purchased a machinery on installment. The cash price isP800,000 while the installment price is P1,000,000. It requireda down payment of P200,000 and the balance payable everyJan. 1 for 4 years, starting in the year 2022.What is the capitalized cost of the acquired PPE if ABC Corp. madethe following property acquisitions on Jan. 1, 2021:a. Acquired a piece of land in exchange for its shares. The shareshave a total fair value of P5,000,000 while the fair value of theland is P5,100,000.b. Purchased a machinery on installment. The cash price isP800,000 while the installment price is P1,000,000. It requireda down payment of P200,000 and the balance payable everyJan. 1 for 4 years, starting in the year 2022. 1. What is the amount of Capitalized Cost?
- D6) ABD was acquired by CAP when net assets of the former were £x. In line with group policy, the property was revalued by £y at the time of acquisition. CAP paid £z buying 80% of ABD. Calculate the non-controlling (minority) interests8. Nail Bite Co. acquired land with fair value of $4,000,000 in exchange for Nail Bite's 10,000 shares with par value of $40 per share and quoted price of $360 per share. How much gain (loss) should Nail Bite Co. recognize on the exchange? a. 3,200,000 b. 400,000 c. (400,000) d. 0(A) What is the capitalized cost of the acquired PPE if ABC Corp. made the following property acquisitions on Jan. 1, 2021: a. Acquired a piece of land in exchange for its shares. The shares have a total fair value of P5,000,000 while the fair value of the land is P5,100,000. b. Purchased a machinery on installment. The cash price is P800,000 while the installment price is P1,000,000. It required a down payment of P200,000 and the balance payable every Jan. 1 for 4 years, starting in the year 2022. 1. What is the capitalized cost? (B) ABC acquired for a lumpsum price of P6,000,000 a piece of land and the building on it. The land and building have fair values of P4,2000,000 and P2,800,000 respectively. The building is still usable but the entity plans to demolish it and construct a new building. Later, total demolition cost incurred was P400,000 but scraps were gathered and sold for P50,000. The new building had a total construction cost of P7,000,000, useful life of 25 years, and a…
- What is the capitalized cost of the acquired PPE if ABC Corp. madethe following property acquisitions on Jan. 1, 2021:-Acquired a piece of land in exchange for its shares. The shareshave a total fair value of P5,000,000 while the fair value of theland is P5,100,000.-Purchased a machinery on installment. The cash price isP800,000 while the installment price is P1,000,000. It requireda down payment of P200,000 and the balance payable everyJan. 1 for 4 years, starting in the year 2022. Question 1. What is the capitalized cost?Answer the following question: Chase Stokes Company purchases land and decides to use the revaluation model to account for land. The company has a December 31 year end and follows ASPE. May 1, Yr 1 Acquisition $960,000 Dec 31, Yr 1 Fair Value $960,000 Dec 31, Yr 2 Fair Value $1,300,000 Dec 31, Yr 3 Fair Value $1,300,000 Dec 31, Yr 4 Fair Value $1,000,000 Dec 31, Yr 5 Fair Value $860,000 Dec 31, Yr 6 Fair Value $1,000,000 Provide all the entries using the revaluation method. please give answer with everything2. What amount of unrealized holding gain should be PROBLEMS Problem 23-1 (IAA) Simple Company reported the following information in relation to land: * The entity purchased land on January 1, 2021 for P500,000 cash. On December 31, 2021, the land has a current replacement cost of P600.000. * On December 31, 2022, the land has a current replacement cost of P750,000. The entity sold the land for P1,000,000 cash on December 31, 2023. On this date, the current replacement cost of the land is P800,000. - What amount of unrealized holding gain should be reported in 2021? a. 600,000 b. 500,000 C. 100,000 d. 0. reported in 2022? a. 250,000 150,000 c. 100,000 d. 0. reported in 2023? a. 300,000 b. 250,000 50,000 d. C. in 2023? a. 500,000 b. 250,000 C. 200,000 d. 150,000 711
- A company exchanged land and cash of $4,000 for similar land. The book value and the fair value of the land were $89,900 and $100,600, respectively. Assuming that the exchange has commercial substance, the company would record land-new and a gain on exchange of assets in the amounts of: a. b. C. d. Land $ 104,600 $ 104,600 $ 93,900 $ 93,900 Multiple Choice O O Option a. Option b. Option d. Option c. Gain $10,700 $ 10,7004. An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisition costs incurred were P140,000. On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000. If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020? Group of answer choices Nil P40,000 P160,000 P420,0005. Use the following information for the next three (3) questions: On July 1, 2021 Captain Universe Company declared as property dividends 10,000 shares held as investment in associate with carrying amount of P4,000,000. Cost of disposal is immaterial. Information on fair values is shown below: Date Fair Value July 1, 2021 P3,200,000 December 31, 2021 4,400,000 February 1, 2022 3,800,000 Questions: The entries on July 1, 2021 include all of the following except Group of answer choices A debit to retained earnings for P3,200,000 A debit to impairment loss for P800,000 A debit to non current asset held for disposal to owners for P4,000,000 A credit to property dividends payable for P3,200,000