n January 1, 2021, Entity A received land with fair of PHP 200,000 from the govermment nditioned on the construction of a building on the lot. Entity A started immediately the nstruction and it was completed on December 31, 2021 for a total cost of PHP 1,000,000. The ilding has an estimated useful life of 10 years and zero residual value. ow much is the income from the government grant in 2021 and 2022 respectively? 2021 2022 a. 0 200,000 b. 200,000 c. 0 d. 20,000 20,000 20,000

n January 1, 2021, Entity A received land with fair of PHP 200,000 from the govermment nditioned on the construction of a building on the lot. Entity A started immediately the nstruction and it was completed on December 31, 2021 for a total cost of PHP 1,000,000. The ilding has an estimated useful life of 10 years and zero residual value. ow much is the income from the government grant in 2021 and 2022 respectively? 2021 2022 a. 0 200,000 b. 200,000 c. 0 d. 20,000 20,000 20,000

Name: On January 1, 2021, Entity A received land with fair of PHP 200,000 f
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Description: On January 1, 2021, Entity A received land with fair of PHP 200,000 from the govemmentconditioned on the construction of a building on the lot. Entity A started immediately theconstruction and it was completed on December 31, 2021 for a total cost o

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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2.Suppose that you acquired a commercial building (a drilling gear box plant) and put in service in January 2018. The cost of the property is $2,000,000, which includes $500,000 value of land. Determine the amount of depreciation that is allowed during the first year of ownership, 2018, by the government. CCA rate for commercial building is 4%. Select one: a. $80,000 cross out b. $60,000 cross out c. $20,000 cross out d. $30,000 cross out Clear my choice ast saved at 1 2-24:24
Problem 28-13 (AICPA Adapted) In 2019, Lepanto Mining Company purchased property with natural resources for P28,000,000. The property had. residual value of P5,000,000. a However, the entity is required to restore the property to the original condition at a discounted amount of Р2,000,000. In 2019, the entity spent P1,000,000 in development cost and constructed a building on the property costing P3,000,000. The entity does not anticipate that the building will have utility after the natural resources are removed. In 2020, an amount of P1,000,000 was spent for additional development on the mine. The tonnage mined and estimated remaining tons are: Tons extracted Tons remaining 10,000,000 7,000,000 2,500,000 2019 3,000,000 3,500,000 2020 2021 1. What amount should be recognized as depletion for 2020? a. 6,900,000 b. 9,600,000 с. 8,100,000 d. 8,400,000 2. What amount should be recognized as depletion for 2021? а. 10,150,000 b. 11,025,000 c. 15,750,000 d. 9,450,000 CS Scanned with…
Hh5. Account
On January 1, 2020, ABC corporation received P8,000,000 from the City of Caloocan to construct an overpass in the intersection of Camarin. The cost of the overpass is P25,000,000, with a useful life of 20 years. How much is the carrying value of the overpass as of December 31, 2021 assuming ABC used the deduction to asset approach?
What is the loss on repayment of the grant on January 1, 2022? What is the depreciation of the equipment for the year 2020?
Glass House Co. decides to develop a new software. The project begins in 2019. Glass House Co. incurs the following expenses in 2019 and 2020 in connection with the project: 2019 2020 Salaries $31,000 $19,000 Equipment $18,000 $21,000 Depreciation on equipment $19,500 $15,500 Glass House Co. elected to apply a deferral and amortization method. The benefits from the project will be realized starting on May 1st, 2021. How much can Glass House Co. deduct for R&E expenses in 2021? Group of answer choices $12,400 $18,600 $16,533 $20,667
3. On May 10, 2019, GUAVA Company received a grant of ₱8,000,000 from the British Government for the construction of a laboratory and research facility with an estimated cost of ₱10,000,000 and a useful life of 5 years. The facility was completed in early 2020. How much should GUAVA Company include in its 2020 income statement as income from the government?
Alta Company is constructing a production complex that qualifies for interest capitalization. The following information is available: Capitalization period: January 1, 2019, to June 30, 2020 Expenditures on project: 2019: January 1 $ 456,000 May 1 417,000 October 1 648,000 2020: March 1 1,512,000 June 30 708,000 Amounts borrowed and outstanding: $1.7 million borrowed at 10%, specifically for the project $7 million borrowed on July 1, 2018, at 12% $14 million borrowed on January 1, 2017, at 6% Required: Note: Round all final numeric answers to two decimal places. Compute the amount of interest costs capitalized each year. Capitalized interest, 2019 $___________________ Capitalized interest, 2020 $___________________ If it is assumed that the production complex has an estimated life of 20 years and a residual value of $0, compute the straight-line depreciation in 2020. $________________
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $ 2,604,000 $ 4,032,000 $ 1,940,400 Estimated costs to complete as of year-end 5,796,000 1,764,000 0 Billings during the year 2,040,000 4,596,000 3,364,000 Cash collections during the year 1,820,000 4,000,000 4,180,000 Westgate recognizes revenue over time according to percentage of completion. 3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. (Do not round intermediate calculations.) My calculations Current Assets A/R 220,000 816,000 CIP 3,100,000 ??…
On July 1, 2020, MAGNOLIA Company purchased the rights to a mine for ₱13,200,000, of which ₱1,200,000 was allocable to the land. Estimated reserves were 1,500,000 tons. The entity expects to extract and sell 25,000 tons per month. The entity purchased mining equipment on July 1, 2020 for ₱9,500,000. The mining equipment had a useful life of eight years. However, after all the resources are removed, the equipment will be of no use and will be sold for ₱500,000. What is the depreciation for 2020? On July 1, 2020, MAGNOLIA Company purchased the rights to a mine for ₱13,200,000, of which ₱1,200,000 was allocable to the land. Estimated reserves were 1,500,000 tons. The entity expects to extract and sell 25,000 tons per month. The entity purchased mining equipment on July 1, 2020 for ₱9,500,000. The mining equipment had a useful life of eight years. However, after all the resources are removed, the equipment will be of no use and will be sold for ₱500,000. What is the depletion for 2020?
On January 1, 2020, PEONY Company showed land with a carrying amount of ₱10,000,000 and building with cost of ₱60,000,000 and accumulated depreciation of ₱18,000,000. The land and building were revalued on the same date and revealed the fair value of land at ₱15,000,000 and building at ₱70,000,000. The original useful life of the building is 20 years and depreciation is computed on the straight line. What is the revaluation surplus on December 31, 2020? ₱ 33,000,000 ₱ 31,000,000 ₱ 11,142,857 ₱ 11,500,000 ₱ 30,642,857
PT Adista owns land that was purchased in cash on January 2, 2018 at a cost of IDR 1,000,000,000. Requested: a. PT Adista decided to use the revaluation model for the land (which is a fixed asset). On December 31, 2018, the company recognized a revaluation surplus of the land amounting to Rp 100,000,000. If on December 31, 2019 it is known that the fair value of the land is IDR 1,060,000,000, make a journal entry that is recorded by PT Astina regarding the land in 2019. b. Describe how the accounting treatment differs between the fixed asset revaluation model and the fair value model of investment property.