Problem 41. On January 1, 2015, AXA Inc. acquired a building at a cost of P2,000,000 with no residual value and useful life of 10 years. On December 31, 2015, the current replacement cost of the land is P3,000,000. Required: Based on the result of your audit, determine the following: 1. What is the unrealized holding gain on building for 2015? 2. What is the realized holding gain on building for 2015? 3. What is the depreciation expense to be reported under current cost accounting?
Problem 41. On January 1, 2015, AXA Inc. acquired a building at a cost of P2,000,000 with no residual value and useful life of 10 years. On December 31, 2015, the current replacement cost of the land is P3,000,000. Required: Based on the result of your audit, determine the following: 1. What is the unrealized holding gain on building for 2015? 2. What is the realized holding gain on building for 2015? 3. What is the depreciation expense to be reported under current cost accounting?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 41. On January 1, 2015, AXA Inc. acquired a building at a cost of P2,000,000 with no
residual value and useful life of 10 years. On December 31, 2015, the current replacement cost of the
land is P3,000,000.
Required: Based on the result of your audit, determine the following:
1. What is the unrealized holding gain on building for 2015?
2. What is the realized holding gain on building for 2015?
3. What is the
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