POPPY Company had the following transactions pertaining to its new office building: Purchase price of land -₱1,200,000; Legal fees for contracts to purchase land -₱140,000; Architect's fee -₱256,000; Demolition of old building on site -₱315,000; Sale of scrap from old building -₱71,000; Construction cost of new building (fully completed) -₱2,450,000; Fire insurance policy on the newly constructed building for the whole year starting on the day it was completed -₱250,000. At what amount should the building be shown in POPPY's statement of financial position of?
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POPPY Company had the following transactions pertaining to its new office building: Purchase price of land -₱1,200,000; Legal fees for contracts to purchase land -₱140,000; Architect's fee -₱256,000; Demolition of old building on site -₱315,000; Sale of scrap from old building -₱71,000; Construction cost of new building (fully completed) -₱2,450,000; Fire insurance policy on the newly constructed building for the whole year starting on the day it was completed -₱250,000. At what amount should the building be shown in POPPY's
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- XYZ Company had the following transactions pertaining to its new office building: Purchase price of land -P1,200.000; Legal fees for contracts to purchase land -P130,000; Architect's fee - P255,000: Demolition of old building on site -P310.000; Sale of scrap from old building -P71,000; Construction cost of new building (fully completed) -P2.450,000: Fire insurance policy on the newly constructed building for the whole year starting on the day it was completed -P250.000. At what amount should the building be shown in XYZ statement of financial position of?DEF Co. purchased a lot for ₱8,000,000. Immediately after the purchase, DEF Co. started the construction of a new building on the lot. Additional information follows: Legal cost of conveying title to land ₱ 40,000 Special assessment 20,000 Survey costs 60,000 Materials, labor, and overhead costs 22,000,000 Cash discounts on materials purchased not taken 120,000 Clerical and other costs related to construction 56,000 Excavation costs 400,000 Architectural fees and building permit 240,000 Supervision by management on construction 48,000 Insurance premiums paid for workers 520,000 Payment for claim for injuries not covered by insurance 180,000 Savings on construction 800,000 Cost of changes to plans and specifications due to inefficiencies 560,000 Paving of streets and sidewalks (not included in blueprint) 40,000 Income earned on a vacant space rented as parking lot during construction 36,000 1. How much are the capitalized costs of the land, land improvement and the…During the current year, Bear Company had the following transactions pertaining to a new office building:Purchase price of land- 600,000Legal fees for contract to purchase land- 20,000Architect fee -80,000Demolition of old building on site to make roomfor construction of new building -50,000Sale of scrap from old building -30,000Construction cost of new building fully completed -3,500,0001. What amount should be reported as cost of land?2. What amount should be reported as cost of building?
- Marjorie Company commenced operations at the beginning of the current year. The following costs are incurred by the entity: Payment for land Taxes in arrears on building on land Demolition of current building on land, net of salvage of P10,000 1,000,000 40,000 100,000 Survey before construction of new building Contract price for factory building 60,000 5,000,000 Architect fee 230,000 Payment to city hall for approval of building construction 120,000 Safety fence around construction site Safety inspection on building 35,000 30,000 20,000 Removal of safety fence after completion of factory building New fence surrounding the factory Driveways, parking bays and safety lighting Cost of trees, shrubs and other landscaping 80,000 550,000 250,000 The land and factory building should respectively be measured atLeni Company incurred the following costs during the current year: Option fee for land acquired Option fee for land not acquired Taxes in arrears on building on land Payment for land Demolition of old building, net of salvage of P10,000 10,000 10,000 50,000 1,000,000 100,000 Architect fee 230,000 120,000 5,000,000 Payment to city hall for approval of building construction Contract price for factory building Safety fence around construction site Safety inspection on building Removal of safety fence after completion of building New fence surrounding the factory Driveways, parking bays and safety lighting 35,000 30,000 20,000 80,000 550,000 What is the cost of land and building, respectively? (Format of answer should be LAND: 1234567; BUILDING: 1234567)Panay Company purchased land as a factory site for P2,400,000. The entity paid P240,000 to tear down a building on the land. Salvage materials was sold for P20,000. Legal fee of P15,000 was paid for title investigation and making the purchase. Architect fee was P125,000. Excavation amounted to P40,000. The contractor was paid P8,800,000. A special assessment made by the city for pavement was P30,000. Interest incurred during construction was P300,000. The entity installed lighting and signage at a cost of P50,000. 5.1 What is the cost of the land? __________ 5.2 What is cost of the building? ___________
- During the current year, Alanna Co. had the following transactions pertaining to its new office building. Purchase price of land $130,000 Legal fees for contracts to purchase land 4,000 Architech fees 16,000 Demolition of the old building on site 12,000 Sale of scrap from old building 5,000 Construction cost of new building 630,000 A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. B. What should Alanna Co. record on its books for the building?Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is worth 100,000 and the building is worth 300,000. What cost should Utica assign to the land and to the building, respectively?During the current year, Alanna Co. had the following transactions pertaining to its new office building. Purchase price of land $120,000 Legal fees for contracts to purchase land 5,000 Architech fees 15,000 Demolition of the old building on site 12,000 Sale of scrap from old building 7,000 Construction cost of new building 680,000 A. What should Alanna Co. record on its books for the land? K) The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. $1 B. What should Alanna Co. record on its books for the building?
- On January 1, 20x1, Horror Co. acquired a building costing ₱1,200,000. Professional fees for legal services and property transfer taxes incurred on the acquisition amounted to ₱50,000. Start up cost incurred amounted to ₱20,000. Operating losses incurred before the planned level of occupancy of the building is achieved amounted to ₱120,000. Materials, labor and overhead incurred for repairs and renovation of the property before it was put to leasable condition amounted to ₱200,000. Abnormal amounts of wasted material, labor and other resources incurred in developing the property amounted to ₱60,000. The renovation and repairs were completed on March 31, 20x1. The building has an estimated useful life of 10 years with no residual value. Horror Co. uses the cost model and the straight-line method of depreciation for its investment property. The building has a fair value of ₱1,400,000 on December 31, 20x1. Requirement: How much is the investment property recognized on January 1, 20x1?During the current year, Alanna Co. had the following transactions pertaining to its new office building. Purchase price of land $120,000 Legal fees for contracts to purchase land 3,000 Architech fees 17,000 Demolition of the old building on site 9,000 Sale of scrap from old building 6,000 Construction cost of new building 700,000 A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. $fill in the blank 1 B. What should Alanna Co. record on its books for the building? $fill in the blank 2Isabela Company commercial operations at the beginning of the current year. The following costs are incurred by the entity during the current year: Option fee for land acquired Option fee for land not acquired Taxes in arrears on building on land Payment for land Demotion of old building on land, net of salvage of P10, 000 10, 000 10, 000 50, 000 1, 000, 000 100, 000 Architect fee 230, 000 Payment to city hall for approval of building construction Contract price for factory building Safety fence around construction site Safety inspection on building Removal of safety fence after completion of factory building New fence surrounding the factory 120, 000 5, 000, 000 35, 000 30, 000 20, 000 80, 000 Driveways, parking bays and safety lighting a. How much is the cost of Land? b. How much is the cost of factory building? 550, 000
