Bambi, Capital will be credited for
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Q: On April 1, 20x1, ESCULENT EDIBLE Co. purchased land and building by paying ₱40,000,000 and assuming…
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Land was acquired at a cost of P150,000 in 2013. In June 2018, its current market value was P300,000 when this property was invested by Bambi in a real estate business. Attached to the property was an outstanding mortgage payable of P20,000. If the mortgage was assumed by the real estate business, Bambi, Capital will be credited for
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- On 1 July 2017, Entity A purchased a property (Land and Building) for $5,000,000. The value of the land and building are $600,000 and $4,400,000 respectively. The expected useful life of the building is 50 years with a residual value of $100,000. Entity A paid 60% by a cheque on 1 July 2017 and the balance was settled on 1 August 2017 through a bank transfer. On 30 June 2019, the property was revalued to $7,562,224 (land $980,224 and buildings $6,582,000) with a new estimated residual value of $120,000. On 30 June 2021, the property was sold to Entity B for $8,600,000. Entity A received 70% on the same date and the balance was settled on 1 August 2021. Entity A opts for annual transfer of the revaluation reserve. REQUIRED: According to relevant accounting standards, prepare journal entries to record the transactions of Entity A from 1 July 2017 to 1 August 2022. ACCOUNTS FOR INPUT: | Machine | Land | Building | Bank | Payable | Receivable | Retained earnings | Share capital | No…XYZ, a manufacturing company, purchases a property for Ghs1m on 1 January 2016 for its investment potential. The land element of the cost is believed to be Ghs 400,000 and the buildings element is expected to have a useful life of 50 years. At 31 December 2016, local property indices suggest that the fair value of the property has risen to Ghs1.1m. Requirement Explain how the property would be presented in the financial statements as at 31 December 2016 if XYZ adopts the Cost model andFair value model.A. MacPro Property Bhd acquired an investment property on 1 January 2015 and measured it using the cost model. On 1 January 2018, MacPro Property Bhd changed the accounting policy and used the fair value model to measure investment property. The acquisition cost of the property was RM70 million and the estimated useful life was 35 years. The fair values of the property were measured as below: Date RM (in million) 31/12/2015 72 31/12/2016 74 31/12/2017 78 31/12/2018 83 Profit after depreciation on investment property but before tax for 2017 and 2018 were RM80 million and RM95 million, respectively. Retained earnings brought forward on 1 January 2017 and 2018, were RM150 million and RM210 million, respectively. Assume that tax rate for 2017 and 2018 was 25%. REQUIRED: Discuss the accounting treatment of the above transaction in accordance to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors. Prepare the comparative financial…
- MacPro Property Bhd acquired an investment property on 1 January 2015 and measured it using the cost model. On 1 January 2018, MacPro Property Bhd changed the accounting policy and used the fair value model to measure investment property. The acquisition cost of the property was RM70 million and the estimated useful life was 35 years. The fair values of the property were measured as below: Date RM (in million) 31/12/2015 72 31/12/2016 74 31/12/2017 78 31/12/2018 83 Profit after depreciation on investment property but before tax for 2017 and 2018 were RM80 million and RM95 million, respectively. Retained earnings brought forward on 1 January 2017 and 2018, were RM150 million and RM210 million, respectively. Assume that tax rate for 2017 and 2018 was 25%. REQUIRED: Discuss the accounting treatment of the above transaction in accordance to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors. Prepare the comparative…On October 1, 2024, a company purchased a piece of land by agreeing to pay the seller $450,000 in two years. If the company had borrowed the money from a bank to pay the seller immediately, management estimates the bank would have required interest of 9% For what amount should the company record the land on the date of purchase (rounded to the nearest dollar)? (PV of $1. and PVA of $1) Multiple Choice O O $450,000 $369.000 $412,844 $378,756On April 1, 20x1, ESCULENT EDIBLE Co. purchased land and building by paying ₱40,000,000 and assuming a mortgage of ₱8,000,000. The land and building have appraised values of ₱20,000,000 and ₱40,000,000, respectively. The building will be used by ESCULENT Co. as its new office. Additional costs relating to the purchase include the following: Legal cost of conveying and registering title to land ₱32,000 Payment to tenants to vacate premises 36,000 Option paid on the land and building 24,000 Option paid on similar land and building not acquired 12,000 Broker's fee on the land and building 60,000 Unpaid real estate taxes prior to April 1, 20x1 assumed by ESCULENT Co. - assessed on land 120,000 Real estate taxes after April 1, 20x1 80,000 Repairs and renovation costs before the building is occupied 160,000 Repair costs after the building is occupied 200,000 * How much is the cost of the land? a. 16,192,000 b. 17,292,000 c. 15,492,000 d. 14,592,000 * How much is the cost of the building?…
- Munirah Bhd was incorporated in 2015. In order to expand its business operation, Munirah Bhd made the following transactions related to property, plart andequipment in the year 2021: 1. To construct a new factory, Munirah Bhd purchased a piece of land with a building for RM700,000(land RM5 50,000 and buildingRM150,000). Munirah Bhd paid a real estate broker's commission of RM28,000, legal fees for title investigation of the land of RM5,000 and property tax for the land of RMI0,000. Shortly after purchasing the land, Munirah Bhd demolished the old building and incurred a total cost of RM20,000. Munirah Bhd received RM4,800 from the selling of the scrap from the old building An additional cost of RM3,000 was paid to grade the land. After grading the land, Munirah Bhd installed fences around the property at the cost of RM17,000. Then, to construct a new factory, Munirah Bhd paid RMS,200 of the architect's fees, and the payment to the building contractor was RM200,000. The insurance policy…During 2009, Aisin Seiki Limited sold 2,000 square meters of prime commercial zoned land to a builder for ¥5,000,000. The builder gave Aisin Seiki Limited a ¥1,000,000 down payment and will pay the remaining balance of ¥4,000,000 to Aisin Seiki Limited in 2010. Aisin Seiki Limited purchased the land in 2002 for ¥3,000,000. Using the installment method, how much profit will Aisin Seiki Limited report for 2009 (in Japanese Yen, \)? Select one: O a. 600,000 b. 400,000 O c. 1,000,000 O d. 3,000,000 e. 0TIA Bhd paid RM9,000,000 on 1 January 2016 to purchase a building for capital appreciation. The fair value of the building on 31 December 2016 and 31 December 2017 were RM16,000,000 and RM11,000,000, respectively. On 30 June 2018, TIA Bhd decided to use this building as an administrative office. The remaining useful life of the office building on 30 June 2018 is 8 years. The fair value of the building on 30 June 2018 was RM14,000,000. However, due to financial problem, TIA Bhd sold this building on 30 June 2019 for RM15,500,000. TIA Bhd adopted fair value model for investment property and revaluation model for owner occupied property. The straight-line method has been used by TIA Bhd to calculate depreciation for the fixed asset. TIA Bhd closes its account on 31 December every year.REQUIRED:(a) Prepare all journal entries for the year 2016, 2017, 2018 and 2019.(b) Explain the accounting treatment for the derecognition of investment property
- Assuming that the effects of interest capitalization are material, calculate the amount ofinterest costs to be capitalized by Matthew Corporation in 2014 in relation to the following events: On January 1, Matthew began construction for a new storage building for its own use. Expenditures incurred evenly throughout the year totaled $900,000. Matthew borrowed $1,000,000 specifically for construction of the storage building at an annual interest rate of 6%. What is the amount of interest that should be capitalized? a. $54,000b. $27,000c. $2,700d. $0 Inventories costing $200,000 were routinely manufactured during the year. Matthew borrowed $200,000 at 8% to finance inventory-related costs. What is the amount of interest that should be capitalized? a. $16,000b. $8,000c. $800d. $0 On September 1, Matthew began construction of a custom-designed machine to the specifications of a customer. As of December 31, $200,000 of materials, labor, and overhead have been assigned to the machine.…PUP CAF Company acquired a property for speculation purposes with the intention of selling it at a higher price in the long-term. The property was acquired at a cash price of P3,000,000. The property has P100,000 unpaid real property tax assumed by PUP CAF Company. In addition, the company also paid the following transaction costs: broker’s commission of P20,000 and registration cost of P35,000. How much PUP CAF should record as Investment Property?On April 13, 2023, Swifty Ltd. purchased a small apartment building with eight suites. The building qualified as an investment property under IAS 40. At the time of purchase, six out of the eight suites were rented. Swifty paid the following items at the time of its acquisition of the apartment building (all items were paid in cash except for the building itself, for which Swifty took out a mortgage): Purchase price of building $4,050,000 Legal fees 7,720 Property transfer fees 24,500 Painting of empty apartments 5,390 Advertising for empty apartments 2,000 On April 14 the previous owner of the apartment building paid Swifty $13,000 for damage deposits from the existing tenants. On December 31, 2023, the apartment building had a fair value of $4,250,000. On December 31, 2024, it was determined that the apartment building had a fair value of $4,040,000. Assuming Swifty follows IFRS, prepare the journal entries required to record the above events. (Credit account titles are automatically…