Hong Banjang was incorporated on January 1, 2020. The following were the transactions during the year: • Total consideration from share issuances amounted to ₱400000. • A land and building were acquired through a lump sum payment of ₱80000. A mortgage amounting to ₱20000 was assumed on the land and building. • Total payments of ₱16000 were made during the year on the mortgage assumed on the land and building. The payments are inclusive of interest amounting to ₱2000. • Additional capital of ₱40000 was obtained through bank loans. None of the bank loans were paid during the year. Half of the bank loans required a secondary mortgage on the land and building. • There is no accrued interest as of year-end. • Dividends declared during the year but remained unpaid amounted to ₱12000. • No other transactions during the year affected liabilities. • Retained earnings as of December 31, 2020 is ₱24000. How much is the total assets as of December 31, 2020?

Hong Banjang was incorporated on January 1, 2020. The following were the transactions during the year: • Total consideration from share issuances amounted to ₱400000. • A land and building were acquired through a lump sum payment of ₱80000. A mortgage amounting to ₱20000 was assumed on the land and building. • Total payments of ₱16000 were made during the year on the mortgage assumed on the land and building. The payments are inclusive of interest amounting to ₱2000. • Additional capital of ₱40000 was obtained through bank loans. None of the bank loans were paid during the year. Half of the bank loans required a secondary mortgage on the land and building. • There is no accrued interest as of year-end. • Dividends declared during the year but remained unpaid amounted to ₱12000. • No other transactions during the year affected liabilities. • Retained earnings as of December 31, 2020 is ₱24000. How much is the total assets as of December 31, 2020?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 18P

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