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 b. P900,000 c. P90,000 d. PO 2. Assuming the fair value of the land is not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land. a. P810,000 b. P900,000 c. P90,000 d. PO 3. Assuming both the fair value of the land and the shares are not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land. a.P810,000 b. P900,000 C.P90,000 d. P0
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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-800,0008. 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. 01. On Dec. 29, 20x1, DF Co. acquires 1,000 units of an investment through a broker at P1.00 per unit. Ownership over the financial asset transfers to DF Co., and DF Co. pays the purchase price, on Jan. 3, 20x2. The fair values per unit are P1.75 on Dec. 31, 20x1 and P1.50 on Jan. 3, 20x2. Requirements: Provide the journal entries under the (1) trade date accounting and (2) settlement date accounting assuming the investment is classified as: (a) FVPL; (b) FVOCI (mandatory); and (c) Amortized cost.
- 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.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?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 everything
- 5. 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 P3,200,000A 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 $ 10,7002. 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
- How much should be recorded as the purchase price of theindividual PPE items: For items 6 to 10, identify the amount to be include as Land 6. Cost of option to the land – P20,000 7. Legal fees and other expenditures for establishing clean title– P100,000 8. Mortgage assumed: Total mortgage – P2,000,000,Remaining mortgage as of acquisition date – P 500,000 9. Real property tax not paid by seller and assumed by theentity, P50,000 due January of current year. Buyer‐entityacquired the land on April 30 of the current year. 10. Special assessment paid to the government – P300,000 11. Fence and landscaping – P500,000What 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?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) interests