ABC Corporation was incorporated on January 2, 2016. The following items relate to the ABC's property and equipment transactions: Cost of land, which included an old apartment building appraised at P300, 000 Apartment building mortgage assumed, including related interest due at the time of purchase Delinquent property taxes assumed by the ABC Payments to tenants to vacate the apartment building Cost of razing the apartment building Proceeds from sale of salvaged materials Architects fee for new building Building permit for new construction Fee for title search Survey before construction of new building Excavation before construction of new building Payment to building contractor Assessment by city for drainage project Cost of grading and leveling Temporary quarters for construction crew Temporary building to house tools and materials Cost of changes during construction to make new building more energy efficient Interest cost on specific borrowing incurred during construction P3, 000,000 80,000 30,000 20,000 40,000 10,000 60,000 40,000 25,000 20,000 100,000 10,000,000 15,000 50,000 80,000 50,000 90,000 360,000 Payment of medical bills of employees accidentally injured while inspecting building construction Cost of paving driveway and parking lot Cost of installing lights in parking lot Premium for insurance on building during construction Cost of open house party to celebrate opening of new building Cost of windows broken by vandals distracted by the celebration 18,000 60,000 12,000 30,000 50,000 12,000 QUESTIONS: Based on the above, determine the following: 1. Cost of Land -| 2. Cost of Building 3. Cost of Land Improvements - 4. Amount that should be expensed when incurred - 5. Total depreciable property and equipment -
ABC Corporation was incorporated on January 2, 2016. The following items relate to the ABC's property and equipment transactions: Cost of land, which included an old apartment building appraised at P300, 000 Apartment building mortgage assumed, including related interest due at the time of purchase Delinquent property taxes assumed by the ABC Payments to tenants to vacate the apartment building Cost of razing the apartment building Proceeds from sale of salvaged materials Architects fee for new building Building permit for new construction Fee for title search Survey before construction of new building Excavation before construction of new building Payment to building contractor Assessment by city for drainage project Cost of grading and leveling Temporary quarters for construction crew Temporary building to house tools and materials Cost of changes during construction to make new building more energy efficient Interest cost on specific borrowing incurred during construction P3, 000,000 80,000 30,000 20,000 40,000 10,000 60,000 40,000 25,000 20,000 100,000 10,000,000 15,000 50,000 80,000 50,000 90,000 360,000 Payment of medical bills of employees accidentally injured while inspecting building construction Cost of paving driveway and parking lot Cost of installing lights in parking lot Premium for insurance on building during construction Cost of open house party to celebrate opening of new building Cost of windows broken by vandals distracted by the celebration 18,000 60,000 12,000 30,000 50,000 12,000 QUESTIONS: Based on the above, determine the following: 1. Cost of Land -| 2. Cost of Building 3. Cost of Land Improvements - 4. Amount that should be expensed when incurred - 5. Total depreciable property and equipment -
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ABC Corporation was incorporated on January 2, 2016. The following items relate
to the ABC's property and equipment transactions:
Cost of land, which included an old apartment building
appraised at P300, 000
Apartment building mortgage assumed, including related
interest due at the time of purchase
Delinquent property taxes assumed by the ABC
Payments to tenants to vacate the apartment building
Cost of razing the apartment building
Proceeds from sale of salvaged materials
Architects fee for new building
Building permit for new construction
Fee for title search
Survey before construction of new building
Excavation before construction of new building
Payment to building contractor
Assessment by city for drainage project
Cost of grading and leveling
Temporary quarters for construction crew
Temporary building to house tools and materials
Cost of changes during construction to make new building
more energy efficient
Interest cost on specific borrowing incurred during
construction
P3, 000,000
80,000
30,000
20,000
40,000
10,000
60,000
40,000
25,000
20,000
100,000
10,000,000
15,000
50,000
80,000
50,000
90,000
360,000
Payment of medical bills of employees accidentally injured
while inspecting building construction
Cost of paving driveway and parking lot
Cost of installing lights in parking lot
Premium for insurance on building during construction
Cost of open house party to celebrate opening of new
building
Cost of windows broken by vandals distracted by the
celebration
18,000
60,000
12,000
30,000
50,000
12,000
QUESTIONS:
Based on the above, determine the following:
1. Cost of Land -|
2. Cost of Building
3. Cost of Land Improvements -
4. Amount that should be expensed when incurred -
5. Total depreciable property and equipment -
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