Beatrice Co. made the following purchases for the year: - Purchased for Php5,400,000, including appraiser fee of Php50,000, a warehouse building and a land on which it is located The land had an appraised value of Php2,000,000 and original cost of Php1,400,000. The building had an appraised value of Php3,000,000 and original cost of Php2,800,000 - Purchased an office building and the land on which it is located for Php7,500,000 cash and assumed an existing Php2,500,000 mortgage For real tax purposes, the property is assessed at Php9,600,000, 60% of which is allocated to the building - Acquired a track of land in exchange for 25,000 shares of the company with Php100 par value and a market price of Php120 per share on the date of acquisition. The last property tax bill indicated assessed value of Php2,400,000 for the land

Understand property, plant, and equipment and its related costs.

how to calculate additions to plant , property, and equipment

Plant Asset Cost Listed below are certain costs (or discounts) incurred in the purchase or construction of new plant assets. (1) Indicate whether the costs should be expensed or capitalized (meaning they are included in the cost of the plant assets on the balance sheet). (2) For costs that should be included in plant assets, indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet. Expensed or Capitalized Asset Category 1. Charges incurred to train employees to use new equipment 2. Invoice cost to purchase new equipment 3. Deduction for an early payment discount taken on the purchase of new equipment 4. Real estate commissions incurred on land purchased for a new plant 5. Property taxes on land incurred after it was purchased 6. Costs of tune-up for the truck used to deliver new equipment 7. Costs to lay the foundation for a new building 8. Insurance on a new building during the construction phase