On January 1, 20x1, Entity A received land with fair of ₱200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 20x1 for a total cost of ₱1,000,000. The building has an estimated useful life of 10 years and zero residual value.How much is the carrying amount of the building on December 31, 20x2 under the following presentations? Gross presentation Net presentationa. 1,000,000 800,000b. 900,000 720,000c. 800,000 640,000d. 800,000 533,333 Use the following information for the next three questions:On January 1, 20x1, Entity A received land with fair of P200,000 from the government conditioned onthe construction of a building on the lot. Entity A started immediately the construction and it wascompleted on December 31, 20x1 for a total cost of P1,000,000. The building has an estimateduseful life of 10 years and zero residual value. How much is the carrying amount of the building on December 31, 20x2 under the followingpresentations?Gross presentationa. 1,000,000b. 900,000c. 800,000d. 800,000Net presentation800,000720,000640,000533,333

Fair value is the price which has no biased influence and is a reasonable market value of an asset…

On January 1, 20x1, Entity A received land with fair of ₱200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 20x1 for a total cost of ₱1,000,000. The building has an estimated useful life of 10 years and zero residual value. How much is the carrying amount of the building on December 31, 20x2 under the following presentations? Gross presentation Net presentation a. 1,000,000 800,000 b. 900,000 720,000 c. 800,000 640,000 d. 800,000 533,333

On January 1, 20x1, Entity A received land with fair of ₱200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 20x1 for a total cost of ₱1,000,000. The building has an estimated useful life of 10 years and zero residual value. How much is the carrying amount of the building on December 31, 20x2 under the following presentations? Gross presentation Net presentation a. 1,000,000 800,000 b. 900,000 720,000 c. 800,000 640,000 d. 800,000 533,333

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11EA: The following intangible assets were purchased by Goldstein Corporation: A. A patent with a...

See similar textbooks

Similar questions

On January 1, 20x1, Entity A received a land with fair of P200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 20x1 for a total cost of P1,000,000. The building has an estimated useful life of 10 years and zero residual value. PLEASE ANSWER IMMEDIATELY
On January 1, 2021, Entity A received land with fair of PHP 200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 2021 for a total cost of PHP 1,000,000. The building has an estimated useful life of 10 years and zero residual value. How much is the depreciation expense recognized in 2023 under the following presentation? Gross Presentation a. 100,000 Net Presentation 80,000 b. 100,000 80,000 c. d. 80,000 100,000 100,000 80,000
On January 1, 2021, Entity A received land with fair of ₱200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 20x1 for a total cost of ₱1,000,000. The building has an estimated useful life of 10 years and zero residual value. How much is the depreciation expense recognized in 20x3 under the gross and net presentations?
On January 1, 20x1, Entity A received land with fair of ₱200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 20x1 for a total cost of ₱1,000,000. The building has an estimated useful life of 10 years and zero residual value. 1.How much is the income from government grant in 20x1 and 20x2, respectively? 2.How much is the carrying amount of the building on December 31, 20x2 under the following presentations?3.How much is the depreciation expense recognized in 20x3 under the following presentations?
On January 1, 20x1, Entity A received land with fair of ₱200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 20x1 for a total cost of ₱1,000,000. The building has an estimated useful life of 10 years and zero residual value. How much is the income from government grant in 20x1 and 20x2, respectively? 20x1 20x2 0 200,000 200,000 0 0 20,000 20,000 20,000 How much is the carrying amount of the building on December 31, 20x2 under the following presentations? Gross presentation Net presentation 1,000,000 800,000 900,000 720,000 800,000 640,000 800,000 533,333 How much is the depreciation expense recognized in 20x3 under the following presentations? Gross presentation Net presentation 100,000 80,000…
On January 1, 2021, Entity A received land with fair of PHP 200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 2021 for a total cost of PHP 1,000,000. The building has an estimated useful life of 10 years and zero residual value. How much is the carrying amount of the building on December 31, 2022 under the following presentation? Gross Presentation Net Presentation a. 1,000,000 800,000 b. 900,000 720,000 с. 800,000 640,000 d. 800,000 533,333
On January 1, 2021, Entity A received land with fair of PHP 200,000 from the govemment conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 2021 for a total cost of PHP 1,000,000. The building has an estimated useful life of 10 years and zero residual value. How much is the income from the government grant in 2021 and 2022 respectively? 2021 2022 a. 0 b. 200,000 200,000 c. 0 d. 20,000 20,000 20,000
On Jan.1, 2020, Dept of Science & Technology purchased an old building to be held as investment property for a total cost of 2,2,00.The building's useful lfe s yars and has a 5% residual value. DOST uses the staight line method to depreciate the buiding. On Dec. 31,200, i od the building for P1.6M. Compute for the following: a) Carying Value on Dec 31, 200 b) Accumulated Depreciation on Dec 31, 2005 C) How much is the gain (los) on the sale?
On 28 April 20X2, Peele Realty purchased land and building for $5.25 million and $3.39 million, respectively. The company uses the revaluation model for the land and building. Assume that the land is revalued annually. The building is revalued every two years. The fair value of the land at the end of 20X2, 20X3 and 20X4 was $5.32 million, $4.97 million and $5.40 million. The fair value of the building at the end of 20X3 was $3.75 million. The building is amortized on a straight-line basis and has a 30-year useful life. Peele takes a full year of depreciation in the year acquired. Required: Prepare the journal entries under the revaluation model for the land in 20X2, 20X3 and 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Prepare the journal entries under the revaluation model for the building in 20X3 and 20X4 (the year 20X4 has no revaluation per the above question, but does require recording of depreciation…
Rigg Owusu Enterprises Ltd bought a machine for GH₵ 150,000 on 1st January 2019. It depreciates the machine on cost over four years assuming a nil residual value. The company received a grant of GH₵30,000 from the municipal assembly to support the acquisition of the machines. Account for this grant under the netting off method.
On January 1, 2020, Diluc acquired land for a cost of P3,000,000 and a building costing P6,000,000.The building has a useful life of 6 years with no residual value. The land and building were properlyincluded under the caption of “Property Plant and Equipment”.On July 1, 2020 due to management decisions, the land and building qualified as “Held for sale” underIFRS 5 provisions on the same date the land had a fair value less cost to sell of P2,500,000, and thebuilding P5,300,000. The fair value less cost to sell of the land and building remained the same untilDecember 31, 2020.Requirements:1. What amount of assets must be presented in the December 31, 2020 financial statements fromthe foregoing events?2. What amount of depreciation expense was recorded in 2020?
1. E. Adentwi Enterprises Ltd bought a machine for GH₵ 150,000 on 1st January 2019. It depreciates the machine on cost over four years assuming a nil residual value.The company received a grant of GH₵30,000 from the municipal assembly to support the acquisition of the machines. required :Account for this grant under the netting off method. 2. Polycarp Ltd adopts revaluation model for subsequent measurement of its intangible assets in accordance with IAS 38: Intangible assets. The policy of Polycarp is to revalue its intangible asset at the end of each year. An intangible asset with an estimated useful life of 9 years was acquired on 1 January 2018 for GH¢45,000. It was revalued to GH¢54,400 on 31 December 2018 and the revaluation surplus was correctly recognized on that date. As at 31 December 2019, the asset was revalued at GH¢32,000.Required:Discuss the accounting treatment required in 2018 and 2019 financial statements.