PROL how to classify the following items in the statement of financial position duc to Darell Company. Darell Co.'s accountant, the hot and sexy Ms. Munda, is unsure The following data was extracted during the financial statement prcparation of Cion Issues Darell Co.'s diverse activities. Item 1) Factory which due to a decline in activity is no longer required and is now being held for sale in accordance Amount P 500,000 with PFRS 5. 2) Farming land was purchased for its investment potential. Planning permission has not been obtained 800,000 for building constructions of any kind. 3) A factory is in the process of being constructed on behalf of the government. 1,260,000 4) A building being constructed on behalf of Marky 1,000,000 Company 5) A new office building used by one of its subsidiaries as its head office which was purchased specifically in the 1,200,000 center of Makati City in order to exploit its capital gains _potential. A property that is in the process of construction for 6) sale A property intended for sale in the ordinary course of 950,000 7) business Owner-occupied properties 450,000 8) | 9) 1,600,000 760,000 Buildings occupied by employees, including Ms. Munda the accountant. The employees pays rent on the building they occupied 10) A building occupied by employees, the employees do not pay market rent on the building they occupied. 11) A building that is leased to a third party under a finance lease 12) A building that is held under mixed use; half of it is owner-occupied and the other half is to earn rentals 3) |A property wherein significant ancillary services are provided to occupants -4) Land and building leased to a subsidiary 240,000 1,110,000 1,720,000 960,000 2,100,000 1,620,000 S) A building leased to an associate under an operating lease 530,000 A new machine leased to another associate under an operating lease Amachine that is leased by the. company under 420,000
PROL how to classify the following items in the statement of financial position duc to Darell Company. Darell Co.'s accountant, the hot and sexy Ms. Munda, is unsure The following data was extracted during the financial statement prcparation of Cion Issues Darell Co.'s diverse activities. Item 1) Factory which due to a decline in activity is no longer required and is now being held for sale in accordance Amount P 500,000 with PFRS 5. 2) Farming land was purchased for its investment potential. Planning permission has not been obtained 800,000 for building constructions of any kind. 3) A factory is in the process of being constructed on behalf of the government. 1,260,000 4) A building being constructed on behalf of Marky 1,000,000 Company 5) A new office building used by one of its subsidiaries as its head office which was purchased specifically in the 1,200,000 center of Makati City in order to exploit its capital gains _potential. A property that is in the process of construction for 6) sale A property intended for sale in the ordinary course of 950,000 7) business Owner-occupied properties 450,000 8) | 9) 1,600,000 760,000 Buildings occupied by employees, including Ms. Munda the accountant. The employees pays rent on the building they occupied 10) A building occupied by employees, the employees do not pay market rent on the building they occupied. 11) A building that is leased to a third party under a finance lease 12) A building that is held under mixed use; half of it is owner-occupied and the other half is to earn rentals 3) |A property wherein significant ancillary services are provided to occupants -4) Land and building leased to a subsidiary 240,000 1,110,000 1,720,000 960,000 2,100,000 1,620,000 S) A building leased to an associate under an operating lease 530,000 A new machine leased to another associate under an operating lease Amachine that is leased by the. company under 420,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ACCOUNTING FOR INVESTMENT PROPERTY.PROBLEM 1. PLEASE ANSWER AND SHOW SOLUTION
Transcribed Image Text:Darell Co.'s diverse activities.
how to classify the following items in the statement of financial position duc to
Darell Company. Darell Co.'s accountant, the hot and sexy Ms. Munda, is unsure
The following data was extracted during the financial statement preparation of
PROBLEM
viuJsiJICUtion Issues
Darell Co.'s diverse activities
Item
1)
Factory which due to a decline in activity is no longer
required and is now being held for sale in accordance
Amount
P 500,000
with PFRS 5.
2)
Farming land was purchased for its investment
potential. Planning permission has not been obtained
800,000
for building constructions of any kind.
| 3)
A factory is in the process of being constructed on
behalf of the government.
1,260,000
4)
A building being constructed on behalf of Marky
Company
1,000,000
5)
A new office building used by one of its subsidiaries as
its head office which was purchased specifically in the
1,200,000
center of Makati City in order to exploit its capital gains
potential.
A property that is in the process of construction for
6)
sale
950,000
A property intended for sale in the ordinary course of
7)
business
450,000
8) | Owner-occupied properties
1,600,000
760,000
9)
Buildings occupied by employees, including Ms. Munda
the accountant. The employees pays rent on the
building they occupied
10) |A building occupied by employees, the employees do
not pay market rent on the building they occupied.
11) | A building that is leased to a third party under a
finance lease
240,000
1,110,000
12) | A building that is held under mixed use; half of it is
owner-occupied and the other half is to earn rentals
13)
1,720,000
13) | A property wherein significant ancillary services are
provided to occupants
14) Land and building leased to a subsidiary
15) | A building leased to an associate under an operating
lease
16)
960,000
2,100,000
1,620,000
530,000
A new machine leased to another associate under an
operating lease
4 machine that is leased by the. company under
420,000
Transcribed Image Text:18) |A building that is being constructed for future use as
administration building.
870,000
Questions:
Based on the above and the result of your audit, determine the amounts to he
reported in the consolidated financial statement of Darell Company and its
suhsidiaries:
2. Property, plant and equipment
с. Р10,740,000
d. P10,500,000
P10,380,000
a.
b. P9,120,000
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