1. James Company showed the following balances in its balance sheet as at year-end: Current Assets P450,000 P1,150,000 P300,000 P900,000 Non-current Assets Current Liabilities Non-current Liabilities Weighted average of outstanding shares 120,000 shares According to the appraisal, 60% of the non-current assets can be replaced at 150% of their reported book value while the remaining balance of the non-current assets has replacement value of 65%. Reported balance of other items approximates their replacement value. How much is the replacement value of James Company at year-end? a.) P299,000 b.) P584,000 c.) P1,035,000 d.) P1,334,000 e.) P1,784,000

1. James Company showed the following balances in its balance sheet as at year-end: Current Assets P450,000 P1,150,000 P300,000 P900,000 Non-current Assets Current Liabilities Non-current Liabilities Weighted average of outstanding shares 120,000 shares According to the appraisal, 60% of the non-current assets can be replaced at 150% of their reported book value while the remaining balance of the non-current assets has replacement value of 65%. Reported balance of other items approximates their replacement value. How much is the replacement value of James Company at year-end? a.) P299,000 b.) P584,000 c.) P1,035,000 d.) P1,334,000 e.) P1,784,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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