PROBLEMS Problem 23-1 (IAA) Simple Company reported the following information in relation to land: The entity purchased land on January 1, 2021 for P500,000 cash. On December 31, 2021, the land has a current replacement cost of P600.000. On December 31, 2022, the land has a current replacement cost of P750,000. The entity sold the land for P1,000,000 cash on December 31, 2023. On this date, the current replacement cost of the land is P800,000. What amount of unrealized holding gain should be reported in 2021? a. 600,000 b. 500,000 c. 100,000 d. nat amount of unrealized holding gain should be reported in 2022? a. 250,000 b. 150,000 c. 100,000 d. reported in 2023? a. 300,000 b. 250,000 с. 50,000 d. in 2023? a. 500,000 b. 250,000 C. 200,000 d. 150,000 711

PROBLEMS Problem 23-1 (IAA) Simple Company reported the following information in relation to land: The entity purchased land on January 1, 2021 for P500,000 cash. On December 31, 2021, the land has a current replacement cost of P600.000. On December 31, 2022, the land has a current replacement cost of P750,000. The entity sold the land for P1,000,000 cash on December 31, 2023. On this date, the current replacement cost of the land is P800,000. What amount of unrealized holding gain should be reported in 2021? a. 600,000 b. 500,000 c. 100,000 d. nat amount of unrealized holding gain should be reported in 2022? a. 250,000 b. 150,000 c. 100,000 d. reported in 2023? a. 300,000 b. 250,000 с. 50,000 d. in 2023? a. 500,000 b. 250,000 C. 200,000 d. 150,000 711

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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Question

2. What amount of unrealized holding gain should be
PROBLEMS
Problem 23-1 (IAA)
Simple Company reported the following information in
relation to land:
* The entity purchased land on January 1, 2021 for P500,000
cash. On December 31, 2021, the land has a current
replacement cost of P600.000.
* On December 31, 2022, the land has a current replacement
cost of P750,000.
The entity sold the land for P1,000,000 cash on December
31, 2023. On this date, the current replacement cost of
the land is P800,000.
- What amount of unrealized holding gain should be
reported in 2021?
a. 600,000
b. 500,000
C. 100,000
d.
0.
reported in 2022?
a. 250,000
150,000
c. 100,000
d.
0.
reported in 2023?
a. 300,000
b. 250,000
50,000
d.
C.
in 2023?
a. 500,000
b. 250,000
C. 200,000
d. 150,000
711

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QUESTION 1 Scott Industries had the following transactions during 2022: 1. Acquired an office building on three acres of land for a lump-sum price of $2,000,000. According to independent appraisals, the fair values were $1,325,000 and $790,000 for the building and land, respectively. A cash down payment of $500,000 20-Jan was made with the remainder financed. 2. Purchased equipment paying $19,000 at the date of purchase and signing a noninterest-bearing note requiring the balance to be paid in five annual installments of $19,000 on the anniversary date of the contract. Based on Cool Globe's 8% borrowing rate for such transactions, the implicit interest cost is $19,139. 3-Feb 3. Received a gift of land and building in Twin Pines Park as an inducement to 15-Mar relocate. The land and buildings have fair values of $39,000 and $395,000. Required: Pepare the journal entries for the transactions above. Round journal entry amounts to the nearest whole dollar. Date Accounts Debit Credit…
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