auisitionsProblem 23-5 (IAA)1. Nutty Company made the following individual cashpurchases:000,000taken.Land and buildingMachinery and officeDelivery equipment6,000,0001,800,000500,000equipmentthe oldlachineAn appraisal disclosed the following fair value:1,000,0003,000,000800,000400,000350,000LandentityonthlychineBuildingMachineryOffice equipmentDelivery equipment2. Nutty Company acquired the assets of another entity withthe following fair value:sed arestThe1,000,0005,000,0002,000,000LandBuildingMachineryThe entity issued 60,000 shares with P100 par value inexchange. The share had a quoted price of P150 on the dateof purchase of the property.ofary3. Received a parcel of land located in Davao City from aphilanthropist as an inducement to locate a plant in thecity. The land has a fair value of P1,500,000.is-4. The entity paid cash for machinery, P900,000 subject to 2%cash discount, and freight on machinery, P35,000.5. The entity acquired furniture and fixtures by issuing aP400,000 two-year noninterest-bearing note. In similartransactions, the entity has paid 12% interest.The present value of 1 at 12% for 2 years is .797, and thepresent value of an annuity of 1 at 12% for 2 years is 1.69.Required:Prepare journal entries to record the transactions.653

Name: auisitionsProblem 23-5 (IAA)1. Nutty Company made the following indiv
Uploaded: 2024-03-04T10:43:15.000Z
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Description: auisitionsProblem 23-5 (IAA)1. Nutty Company made the following individual cashpurchases:000,000taken.Land and buildingMachinery and officeDelivery equipment6,000,0001,800,000500,000equipmentthe oldlachineAn appraisal disclosed the following fair va