ACCOUNTING FOR INVESTMENT PROPERTY.PROBLEM 1. PLEASE ANSWER AND SHOW SOLUTION Darell Co.'s diverse activities.how to classify the following items in the statement of financial position duc toDarell Company. Darell Co.'s accountant, the hot and sexy Ms. Munda, is unsureThe following data was extracted during the financial statement preparation ofPROBLEMviuJsiJICUtion IssuesDarell Co.'s diverse activitiesItem1)Factory which due to a decline in activity is no longerrequired and is now being held for sale in accordanceAmountP 500,000with PFRS 5.2)Farming land was purchased for its investmentpotential. Planning permission has not been obtained800,000for building constructions of any kind.| 3)A factory is in the process of being constructed onbehalf of the government.1,260,0004)A building being constructed on behalf of MarkyCompany1,000,0005)A new office building used by one of its subsidiaries asits head office which was purchased specifically in the1,200,000center of Makati City in order to exploit its capital gainspotential.A property that is in the process of construction for6)sale950,000A property intended for sale in the ordinary course of7)business450,0008) | Owner-occupied properties1,600,000760,0009)Buildings occupied by employees, including Ms. Mundathe accountant. The employees pays rent on thebuilding they occupied10) |A building occupied by employees, the employees donot pay market rent on the building they occupied.11) | A building that is leased to a third party under afinance lease240,0001,110,00012) | A building that is held under mixed use; half of it isowner-occupied and the other half is to earn rentals13)1,720,00013) | A property wherein significant ancillary services areprovided to occupants14) Land and building leased to a subsidiary15) | A building leased to an associate under an operatinglease16)960,0002,100,0001,620,000530,000A new machine leased to another associate under anoperating lease4 machine that is leased by the. company under420,000 18)A building that is being constructed for future use as870,000administration building.Questions:Based on the above and the result of your audit, determine the amounts to bereported in the consolidated financial statement of Darell Company and itssubsidiaries:1. Investment pronerbb.B10 5000004. Investment property is initially measured at cost, including transactioncosts. Such cost includesa. Start-up costsb. Abnormal wastec. Property transfer taxesd. Initial operating losses

The assets acquired by a business are recorded under different categories. The accounting treatment…

Answered: 4. Investment property is initially…

4. Investment property is initially measured at cost, including transaction costs. Such cost includes a. Start-up costs b. Abnormal waste c. Property transfer taxes d. Initial operating losses

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 60P

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Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. fill in the blanks by rearranging the items that are wrong: Balance Sheet Payables $ 35 Inventories $50 Less accumulated depreciation 120 Receivables 35 Total current assets ___?____ Total current liabilities __?____ Long-term debt $350…
Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. fill in the blanks by rearranging the items that are wrong: Balance Sheet Payables $ 35 Inventories $50 Less accumulated depreciation 120 Receivables 35 Total current assets ___?____ Total current liabilities __?____ Long-term debt $350…
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