On January 1, 2021, Entity A received land with fair of PHP 200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 2021 for a total cost of PHP 1,000,000. The building has an estimated useful life of 10 years and zero residual value. How much is the depreciation expense recognized in 2023 under the following presentation? Gross Presentation a. 100,000 b. 100,000 Net Presentation 80,000 80,000 d. 80,000 100,000 100,000 80.000 c.

On January 1, 2021, Entity A received land with fair of PHP 200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 2021 for a total cost of PHP 1,000,000. The building has an estimated useful life of 10 years and zero residual value. How much is the depreciation expense recognized in 2023 under the following presentation? Gross Presentation a. 100,000 b. 100,000 Net Presentation 80,000 80,000 d. 80,000 100,000 100,000 80.000 c.

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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On January, 2021, Joshtin Company owned an investment property which had an original cost of 7,250,000 and useful life of 50 years. On December 31, 2021, the fair value was 6,100,000 and on December 31, 2022, the fair value was 6,000,000. Under the fair value model, what is the expense to be recognized for the year ended December 31, 2022? 0 200,000 100,000 147,000
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24. A building was acquired on January 1, 2020 at an original cost of P16,000,000, with zero residual value. Depreciation is computed using Double Declining Balance Method. Useful life in years is 20 years. On December 31, 2021, the building is appraised at a fair market value of P14,460,000.The appraisal results are to be recognized in the accounts considering the same remaining life for the building. How much is the amount to be credited to revaluation surplus at December 31, 2021?
14. On January 1, 2020, DAHLIA Company showed land with a carrying amount of ₱10,000,000 and building with a 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 the 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? * a. ₱ 11,500,000 b. ₱ 11,142,857 c. ₱ 31,000,000 d. ₱ 30,642,857 ₱ 33,000,000
On January 1, 2021, Entity A received land with fair of PHP 200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 2021 for a total cost of PHP 1,000,000. The building has an estimated useful life of 10 years and zero residual value. How much is the carrying amount of the building on December 31, 2022 under the following presentation? Gross Presentation Net Presentation a. 1,000,000 800,000 b. 900,000 720,000 с. 800,000 640,000 d. 800,000 533,333