During the current year, Sheena Company had the following transactions pertaining to its property plant and equipment: Purchase price of Land – 600,000 Legal fees for contract to purchase Land – 20,000 Architect fee – 80,000 Demolition of old building on site – 50,000 Sale of scrap from old building – 30,000 Construction cost of new building (fully completed) – 3,500,000 I. In Sheena Company’s year-end statement of financial position, what amount should be reported as cost of the Land? 600,000 620,000 640,000 650,000 II. In Sheena Company’s year-end statement of financial position, what amount should be reported as cost of the Building? 3,500,000 3,520,000 3,580,000 3,630,000 III. Assume that the Building has an estimated useful life of 50 years and salvage value of P50,000, Sheena Company’s first year depreciation using the straight line method would be 70,600 71,600 141,200 143,200 Assume that the Building has an estimated useful life of 50 years and salvage value of P50,000, Sheena Company’s first year depreciation using the double declining balance method would be 70,600 71,600 141,200 143,200
During the current year, Sheena Company had the following transactions pertaining to its property plant and equipment:
Purchase price of Land – 600,000
Legal fees for contract to purchase Land – 20,000
Architect fee – 80,000
Demolition of old building on site – 50,000
Sale of scrap from old building – 30,000
Construction cost of new building (fully completed) – 3,500,000
I. In Sheena Company’s year-end
- 600,000
- 620,000
- 640,000
- 650,000
II. In Sheena Company’s year-end statement of financial position, what amount should be reported as cost of the Building?
- 3,500,000
- 3,520,000
- 3,580,000
- 3,630,000
III. Assume that the Building has an estimated useful life of 50 years and salvage value of P50,000, Sheena Company’s first year
depreciation using thestraight line method would be- 70,600
- 71,600
- 141,200
- 143,200
Assume that the Building has an estimated useful life of 50 years and salvage value of P50,000, Sheena Company’s first year depreciation using the double declining balance method would be
- 70,600
- 71,600
- 141,200
- 143,200
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