Problem 14 League Company owns three properties which are classified as investment properties. Details of the properties. Initial Fair Value Fair Value cost 12/31/2015 12/31/2016 Property 1 Property 2 Property 3 2,700,000 3,200,000 3,500,000 3,450,000 3,050,000 2,850,000 3,300,000 3,850,000 3,600,000 Each property was acquired in 2012 with a useful life of 25 years. The entity's accounting policy is to be use the investment properties. What is the gain or loss to be recognized for the year ended December 31, 2016? a. 189,000 loss b. 150,000 loss C. 300,000 gain d. 450,000 loss
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- MC12 Mega Company and its subsidiaries have a provided you with a list of property items they own: Land held by Mega for undetermined future P10 million use A vacant building owned by Mega and to be leased out under an operating lease Property held by a subsidiary of Mega, a real estate firm, in the ordinary course of business Property held by Mega for use in production A hotel owned by Mega's subsidiary; the subsidiary also provides security services to its guests A building owned by Mega being leased out to Vega, one of Mega's subsidiaries, under operating leases 20 million 50 million 12 million 60 million 25 million What amount shall be shown as Investment Property in the consolidated statement of financial position of Mega and its subsidiaries? P20 million P30 million a. b. P85 million P90 million с. d.CHAPTER 9 Long-Lived Tangible and Intangible Assets Stonalb, LO 9-2, 9-6 American Golf Corporation 0021215-201 006.12.30 sunt h smi Insuite od gu buon aubregar tomsiste (yrity bors:0 M9-2 Deciding Whether to Capitalize or Expense American Golf Corporation operates golf courses throughout the country. For each of the following items, enter the correct letter to show whether the cost should be capitalized (C) or expensed (E). evil Dotimilginer 29vil Botiquin TEN Transactions 1. Purchased a golf course in Orange County, California. 2. Paid a landscaping company to clear 100 acres of land on which to build a new course. 3. Paid a landscaping company to apply fertilizer to the fairways on its Coyote Hills Golf Course. 6 eraub 4. Hired a building maintenance company to build a 2,000-square-foot addition on a clubhouse. 5. Hired a building maintenance company to replace the locks on a clubhouse and equip- ment shed. has a total loubo 6. Paid an advertising company to create a campaign to…16. MODULATE Co. has the following assets.Vacant building to be leased out under operating lease4,000,000Building being constructed for TO ADJUST, Inc.800,000Building under construction to be used as office1,600,000Building under construction to be rented out under operating lease400,000Building rented out to MODULATE’s employees who pay rent at market rates3,200,000Office building awaiting disposal200,000How much is the total investment property?Group of answer choices7,600,0004,200,0004,400,0004,600,000
- Question 1 Focus Eye Bhd has adopted the revaluation model and the following information is related to its freehold land. Cost as at 31 Dec 2015 Fair value as at 31 Dec 2015 Fair Value as at 31 Dec 2016 Freehold land X RM1,000,000 RM1,200,000 RM900,000 Freehold Land Y RM1,100,000 RM800,000 RM1,200,000 Required: Show the journal entries to record the surplus or deficit on revaluation for the year ended 31 December 2015 and 2016. Show the extract of the statement of profit or loss and other comprehensive income for the year ended 31 December 2015 and 2016.ABC Company reported three items in its Investment Property category, with the following details:Property AInitial Cost - P5,400,000Fair Value, 12/31/22 - P8,000,000Fair Value, 12/31/21 - P6,400,000Property BInitial Cost - 6,900,000Fair Value, 12/31/22 - 4,200,000Fair Value, 12/31/21 - 6,000,000Property CInitial Cost - 6,600,000Fair Value, 12/31/22 - 7,800,000Fair Value, 12/31/21 - 7,200,000All of them were acquired in 2021 with a useful life of 10 years. The company's policy is to use the fair value model for all its investment property.What is the net amount reported in profit or loss for the year ended December 31, 2022 relating to ABC Company’s investment property? a. P 400,000 b. P 400,000 c. P1,100,000 d. P1,890,000Investment Property: Recognition: The following are being considered for classification under Investment Property by ABC Retailer Incorporated. Which should be included and what is correct balance for the account? a. Land held for undetermined use – P 4,000,000 b. Manufacturing plant – P 5,000,000 c. Vehicles rented out for additional income – P 3,000,000 d. Land plus building under construction to be rented out under an operating lease – P6,000,000 e. Investment Property, balance
- Q A Computer Mfg. Equipment Office building Land P&G Corporation, a C corporation, sold the following business use assets in 2022. Compute the amount and character of any gain or loss P&G Corporation must report from the disposition of each asset (e.g., §1231 gain or loss, ordinary gain or loss, §1245 recapture, etc.). Assume that P&G Corporation has no Section 1231 losses in prior years. Please show your work and explain your calculations. Asset N 2 30% W S 3 X 3 do E Acquired Sold Cost 10/7/2021 8/16/2022 $50,000 1/13/2020 5/16/2022 $208,000 7/23/2014 2/12/2022 $320,000 7/23/2014 2/12/2022 $100,000 D 298 $ 4 C R F % 5 T V 6 G fo Y B & 7 No Spacing H U * Cost Adjusted Recovery Basis 8 Heading 1 N J Heading 2 I 9 $45,000 $10,000 $40,000 $98,852 $109,148 $180,000 $60,000 $260,000 $400,000 $0 $100,000 $80,000 M 0 O V مه Subtitle ob Sales Price P V Subtle Emph command a OF2. 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 711Assume that Denis Savard Inc. has the following accounts at the end of the current year. 1. 2. 3. 4. 5. 6. 8. 9. 7. Unearned Rent Revenue. 10. 11. Common Stock. 12. Discount on Bonds Payable. Treasury Stock (at cost). Notes Payable (short-term). Raw Materials. Equity Investments (long-term). Work in Process. Copyrights. Buildings. Notes Receivable (short-term). Cash. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. Salaries and Wages Payable. Accumulated Depreciation-Buildings. Restricted Cash for Plant Expansion. Land Held for Future Plant Site. Allowance for Doubtful Accounts. Retained Earnings. Paid-in Capital in Excess of Par-Common Stock. Unearned Subscriptions Revenue. Receivables-Officers (due in one year). Inventory (finished goods). Accounts Receivable. Bonds Payable (due in 4 years). Prepare a classified balance sheet in good form. (No monetary amounts are necessary.) (For Land, Treasury Stock, Notes Payable, Preferred Stock Investments, Notes Receivable, Receivables-Officers,…
- Question 25 B's basis in the property received is m $10,000 m $20,000 m $30,000 m None of these_ Question 26 Z Co.'s recognized gain or loss on the distribution to A is m None of these_ m S35.000 capital gain m $<40,000> ordinary loss m 0 Question 27 Z Co.'s recognized gain or loss On the distribution to B is m None of these_ m $2O,0OO capital gain m $10,000 capital gain m 0 Question 28 Z Co.'s recognized gain or loss on the distribution to C is $70,000 capital gain None of these_ $20,000 capital gain $40,000 gain Question 29 Z Co.'s recognized gain or loss on the distribution to D is m <$1,600> capital loss m 0 m <$400> capital loss m None of theseInvestment Property Determine the cost of the following items of investment acquired by Sasha Corporation during 2022; Land site for capital appreciation was acquired for P8,600,000. The company paid P430,000 commission to a real estate agent. Costs of P 135,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for P 65,000. The cost of investment property is _____________ Land and building were acquired to be held for under operating leases. The company made a de payment of P4,000,000, issued 20,000 P200 par ordinary shares with a market price of P240 per share, and issued a three-year non-interest-bearing note for P6,000.000 note is payable in equal annual installments of P2,000,000 at the end of each year from the date of purchase. The prevailing interest rate for similar notes is 10%. 30% of the purchase price is allocated to the land. Investment property is recorded at __________On January 1, 2021, Wee Company acquired property consisting of ten identical freehold detached houses each Problem 22-9 (IFRS) with separate legal title including the land on which it is built for P200,000,000, 20% of which is attributable to the land. The units have a useful life of 50 years. The following costs are also incurred on such date: Nonrefundable transfer taxes not included in the purchase price 20,000,000 Legal cost directly attributable to the acquisition 1,000,000 Reimbursement to the previous owner for prepaying nonrefundable property taxes for the six-month period ending June 30, 2021 100,000 Advertising campaign 500,000 Opening function to celebrate new rental business 200,000 On June 30, 2021, the entity paid local property taxes of P200,000 for the year ending June 30, 2022. Throughout 2021, the entity incurred repairs and maintenance of P120,000. The entity used one of the ten units to accommodate the administration and maintenance staff. The other nine units are…