Machinery and office equipment2. Nutty Company acquired the assets of another entity withAn appraisal disclosed the following fair value:bany made the following individual cashNuttypurchases:Land and building1.Delivery equipment6,000,0001,800,000500,000LandBuilding1,000,0003,000,000800,000400,000350,000MachineryOffice equipmentDelivery equipmentthe following fair value:LandBuildingMachinery1,000,0005,000,0002,000,000The entity issued 60,000 shares with P100 par value inexchange. The share had a quoted price of P150 on the dateof purchase of the property.3. Received a parcel of land located in Davao City from aphilanthropist as an inducement to locate a plant in thecity. The land has a fair value of P1,500,000.4. The entity paid cash for machinery, P900,000 subject to 2%cash discount, and freight on machinery, P35,000.D. The entity acquired furniture and fixtures by issuing aP400,000 two-year noninterest-bearing note. In similartransactions, the entity has paid 12% interest.The present value of 1 at 12% for 2 years is .797, and thepresent value of an annuity of 1 at 12% for 2 years is 1.69.Required:

Note: Since you have posted a question with multiple sub-parts, we will solve the first three…

Answered: D. The entity acquired furniture and…

FINANCIAL ACCOUNTING

10th Edition

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Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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None
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D. The entity acquired furniture and fixtures by issuing a P400,000 two-year noninterest-bearing note. In similar transactions, the entity has paid 12% interest. The present value of 1 at 12% for 2 years is .797, and the present value of an annuity of 1 at 12% for 2 years is 1.69. Requinodu