Cake Company acquired the following plant assets during the current year. · Equipment - Acquired at an invoice price of P600,000, subject to a 5% cash discount which was not taken. · Land - Acquired by issuing 10,000 shares of P50 par value when the market price of the share was P120. The shares issued are treasury shares which had been acquired at a cost of P90 per share. The fair value of the land is P1,100,000. · Machinery - Acquired at a cost of P275,000. Installation cost was P7,000, trial run and other testing cost P18,000, and construction of base, P10,000. What is the total increase in property, plant and equipment as a result of plant asset acquisitions? P1,770,000 P1,970,000 P1,980,000 P2,080,000
Cake Company acquired the following plant assets during the current year. · Equipment - Acquired at an invoice price of P600,000, subject to a 5% cash discount which was not taken. · Land - Acquired by issuing 10,000 shares of P50 par value when the market price of the share was P120. The shares issued are treasury shares which had been acquired at a cost of P90 per share. The fair value of the land is P1,100,000. · Machinery - Acquired at a cost of P275,000. Installation cost was P7,000, trial run and other testing cost P18,000, and construction of base, P10,000. What is the total increase in property, plant and equipment as a result of plant asset acquisitions? P1,770,000 P1,970,000 P1,980,000 P2,080,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cake Company acquired the following plant assets during the current year.
· Equipment - Acquired at an invoice price of P600,000, subject to a 5% cash discount which was not taken.
· Land - Acquired by issuing 10,000 shares of P50 par value when the market price of the share was P120. The shares issued are treasury shares which had been acquired at a cost of P90 per share. The fair value of the land is P1,100,000.
· Machinery - Acquired at a cost of P275,000. Installation cost was P7,000, trial run and other testing cost P18,000, and construction of base, P10,000.
What is the total increase in property, plant and equipment as a result of plant asset acquisitions?
· Equipment - Acquired at an invoice price of P600,000, subject to a 5% cash discount which was not taken.
· Land - Acquired by issuing 10,000 shares of P50 par value when the market price of the share was P120. The shares issued are treasury shares which had been acquired at a cost of P90 per share. The fair value of the land is P1,100,000.
· Machinery - Acquired at a cost of P275,000. Installation cost was P7,000, trial run and other testing cost P18,000, and construction of base, P10,000.
What is the total increase in property, plant and equipment as a result of plant asset acquisitions?
P1,770,000
P1,970,000
P1,980,000
P2,080,000
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