Compute the net substantial replacement value:   a. P4,200 b. P3,600 c. P3,000 d. P5,400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Compute the net substantial replacement value:
 
a. P4,200
b. P3,600
c. P3,000
d. P5,400
Given the following information:
Assets
Cash & CE
Acct. Receivable
Inventories
Fixed Assets
Total Assets
In pesos
Liabilities & SHE
Acct. Payable
Notes Payable
Bonds Payable
Ordinary share cap.
Preference shares
Reserve & surplus
4,800 Total Liab. & SHE
150
300
1,350
3,000
In pesos
1,200
300
900
1,500
600
300
4,800
Assume further that (a) 20% of the fixed assets are unused, and (b) the market value
of the fixed assets is 50% higher than the accounting value carried in the balance
sheet.
Transcribed Image Text:Given the following information: Assets Cash & CE Acct. Receivable Inventories Fixed Assets Total Assets In pesos Liabilities & SHE Acct. Payable Notes Payable Bonds Payable Ordinary share cap. Preference shares Reserve & surplus 4,800 Total Liab. & SHE 150 300 1,350 3,000 In pesos 1,200 300 900 1,500 600 300 4,800 Assume further that (a) 20% of the fixed assets are unused, and (b) the market value of the fixed assets is 50% higher than the accounting value carried in the balance sheet.
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