Delivery charge Installation charge Additional components to increase capacity Service and maintenance Replacement parts Test runs BKAR1013 FINANCIAL ACCOUNTING AND REPORTING I Small spare parts 75,000 50,250 107,250 24,750 17,000 16,500 2,600 REQUIRED: Calculate the cost of land, land improvement, building and equipment based on MFRS 116 Property, Plant and Equipment. Please show your calculations.
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- B. Upon expiration of the pioneer status, Brownish Bhd is planning to apply for reinvestment allowance. The following expenditure is expected to incur by the company in the year 2027 in relation to its business expansion program: Expenditure Purchase of land RM 4,000,000 Hi-technology plant and machineries New factory building Construction 1,900,000 2,660,000 of new automated storeroom 300,000 Office equipment 165,000 2027 Adjusted income Capital allowances Interest in RM 10,200,000 2,000,000 income 185,000Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?Property 1This property was purchased at a cost of R4 500 000 on 1 January 2019. An upfront payment ofR450 000 was made on this date and the remaining R4 050 000 is payable on 31 December 2019.A discount rate of 10% is applicable. The present value factor for R1 at 10% per annum is 0.909.5% of the property is used by the company as its sales and administration office. This isconsidered to be an insignificant portion of the property. The remaining 95% is leased to thirdparties under operating leases. The property cannot be apportioned off and sold separately.Transfer duties of R328 000 plus other abnormal costs of labour amounting to R50 000 wereincurred in getting the property ready to be let out to third parties.During the year, rentals of R775 000 were earned and repairs and maintenance expenses ofR65 000 were paid.The fair value of the property at year end on 31 December 2019 was R5 400 000. Q.2.2 If the company chooses to use the fair value model for measurement after recognition…
- On January 1, 2018, the Divine Company took out a 12% P10 million loan to finance the construction of a building. The key dates are as follows: January 1 – Loan interest relating to the project starts to be incurredFebruary 1 – Technical site planning commencesMarch 1 – Expenditures on the project start to be incurredApril 1– Construction Work CommencesNovember 1 – Substantially all of the activities necessary to prepare the asset for its intended use are completeDecember 1 – Building brought into use What amount of interest should divine capitalize for the current year?a. 1,000,000b. 900,000c. 800,000d. 700,000 What is the solution for option C?Property 1This property was purchased at a cost of R4 500 000 on 1 January 2019. An upfront payment ofR450 000 was made on this date and the remaining R4 050 000 is payable on 31 December 2019.A discount rate of 10% is applicable. The present value factor for R1 at 10% per annum is 0.909.5% of the property is used by the company as its sales and administration office. This isconsidered to be an insignificant portion of the property. The remaining 95% is leased to thirdparties under operating leases. The property cannot be apportioned off and sold separately.Transfer duties of R328 000 plus other abnormal costs of labour amounting to R50 000 wereincurred in getting the property ready to be let out to third parties.During the year, rentals of R775 000 were earned and repairs and maintenance expenses ofR65 000 were paid.The fair value of the property at year end on 31 December 2019 was R5 400 000. Q.2.1 Determine the cost at initial recognition for Property 1. Q.2.2 If the company chooses…Casio Co. recognizes construction revenue and expenses using the percentage-of-completion method. During 2020, a single long-term project was begun, which continued through 2018 Information on the project follows: 12/31 Accounts Receivable balance Construction expenses for year Gross Profit recognized in year Bangs during year The 12/31/21 CIP balance is Select one O $50,000 Ob 1322,000 O 1619.000 Od $106.000 O $112,000 2020 $100,000 105,000 122,000 100,000 20121 $300.000 192,000 200,000 420.000
- BFN3114: Tax Planning Tutorial 6: Capital Allowance & Industrial Building Allowance QUESTION 1 Mayfair Sdn. Bhd. which prepares account to 31.12 annually has the details of the following expenditures: RM'000 1. Plant and machinery (heavy) 2. Truck 200 300 3. Air- conditioners 50 These assets were acquired during the year 2016. Compute the capital allowance (Initial allowance & Annual Allowance) of the fixed assets for relevant years of assessnient (2016, 2017, 2017, 2018 & 2019)ook ant onces On January 1, 2024, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2025. Expenditures on the project were as follows: January 1, 2024 March 1, 2024 June 30, 2024 October 1, 2024 January 31, 2025 April 30, 2025 August 31, 2025 $1,000,000 600,000 800,000 600,000 270,000 585,000 900,000 On January 1, 2024, the company obtained a $3 million construction loan with a 10% interest rate. The loan was outstanding all of 2024 and 2025. The company's other interest-bearing debt included two long-term notes of $4,000,000 and $6.000.000 with interest rates of 6% and 8%, respectively. Both notes were outstanding during all of 2024 and 2025. Interest is paid annually on all debt. The company's fiscal year-end is December 31. Required: 1. Calculate the amount of interest that Mason should capitalize in 2024 and 2025 using the specific interest method. 2. What is the total cost of the…Date Events Year 2017 1 June Acquired a piece of land with an old factory building. Lampu Terang Bhd paid RM100,000 cash and the balance is to be paid by signing a 5-year, non-interest bearing note with a present value of RM526,000. Lampu Terang Bhd intended to scrap the old building and construct a new one. 5 June Paid RM1,000 for real estate taxes, RM2000 real estate agent commission fees and RM1,500 for title expenses. 10 June Paid RM 10,000 for the cost of clearing the land. 20 June Paid RM5,000 for the razing and excavation cost for the new factory building. 25 June Received RM10,000 from residual value of demolished building. 1 July Paid RM15,000 for the first payment on architect fees. 1 December Paid RM25,000 for installation of electricity, telephone and water supplies for the building. 15 December Paid RM30,000 for the final payment on architect fees. Paid RM20,000 for installation fees and construction of fences…
- Date Events Year 2017 1 June Acquired a piece of land with an old factory building for RM1,000,000. Lampu Terang Bhd paid RM100,000 cash and the balance is to be paid by signing a 5-year, non-interest bearing note with a present value of RM526,000. Lampu Terang Bhd intended to scrap the old building and construct a new one. 5 June Paid RM1,000 for real estate taxes, RM2000 real estate agent commission fees and RM1,500 for title expenses. 10 June Paid RM 10,000 for the cost of clearing the land. 20 June Paid RM5,000 for the razing and excavation cost for the new factory building. 25 June Received RM10,000 from residual value of demolished building. 1 July Paid RM15,000 for the first payment on architect fees. 1 December Paid RM25,000 for installation of electricity, telephone and water supplies for the building. 15 December Paid RM30,000 for the final payment on architect fees. Paid RM20,000 for installation fees and construction…12 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 1,856,320 1,992,320 1,512,000 2,288,00011 NANGUTANG started constructing a building for its own use on January 1, 2020. NANGUTANG provided the following information related to the construction: Outstanding loans of the Company at January 1, 2020: Interest Rate Amount of loan Interest Cost 5% P10,000,000 P 500,000 10% 20,000,000 2,000,000 Total P30,000,000 P2,500,000 Construction expenditures: July 1, 2020 7,000,000 November 31,2020 3,000,000 December 31, 2020 1,000,000 The amount of borrowing cost that should be charged to profit or loss for the period is? Group of answer choices 340,142 312,375 2,208,450 2,187,625