ABC Company replaced some parts of its factory building as well as its annual maintenance and upkeep during 2020: The outside corrugated covering of the factory wall was removed and replaced. The job was done by an expert crew from Bayani Construction Company and will extend the life of the building by 4 years. The cost of the new wall was ₱600,000. The cost of the old wall is estimated to be ₱200,000. The building is 25% depreciated. General maintenance and tune up to its factory equipment in order to maintain their current projected capacity were incurred at a cost of ₱150,000. Dust filters in the interior of the factory were replaced at a cost of ₱300,000. The new filters are expected to reduce employee health hazards and thus reduce wage and fringe benefit costs. The original filters cost ₱100,000. What is the total amount to be expensed from the given expenditures of ABC Company? ₱1,150,000 ₱900,000 ₱450,000 ₱150,000
ABC Company replaced some parts of its factory building as well as its annual maintenance and upkeep during 2020: The outside corrugated covering of the factory wall was removed and replaced. The job was done by an expert crew from Bayani Construction Company and will extend the life of the building by 4 years. The cost of the new wall was ₱600,000. The cost of the old wall is estimated to be ₱200,000. The building is 25% depreciated. General maintenance and tune up to its factory equipment in order to maintain their current projected capacity were incurred at a cost of ₱150,000. Dust filters in the interior of the factory were replaced at a cost of ₱300,000. The new filters are expected to reduce employee health hazards and thus reduce wage and fringe benefit costs. The original filters cost ₱100,000. What is the total amount to be expensed from the given expenditures of ABC Company? ₱1,150,000 ₱900,000 ₱450,000 ₱150,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Company replaced some parts of its factory building as well as its annual maintenance and upkeep during 2020:
- The outside corrugated covering of the factory wall was removed and replaced. The job was done by an expert crew from Bayani Construction Company and will extend the life of the building by 4 years. The cost of the new wall was ₱600,000. The cost of the old wall is estimated to be ₱200,000. The building is 25%
depreciated. - General maintenance and tune up to its factory equipment in order to maintain their current projected capacity were incurred at a cost of ₱150,000.
- Dust filters in the interior of the factory were replaced at a cost of ₱300,000. The new filters are expected to reduce employee health hazards and thus reduce wage and
fringe benefit costs. The original filters cost ₱100,000.
What is the total amount to be expensed from the given expenditures of ABC Company?
- ₱1,150,000
- ₱900,000
- ₱450,000
- ₱150,000
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