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Required: For Minmin Company, how much was allocated to: i. Land ii. Building iii. Machinery iv. Office equipment v. Delivery equipment

Required: For Minmin Company, how much was allocated to: i. Land ii. Building iii. Machinery iv. Office equipment v. Delivery equipment

FINANCIAL ACCOUNTING
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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Required:
For Minmin Company, how much was allocated to:


i. Land
ii. Building
iii. Machinery
iv. Office equipment
v. Delivery equipment

Situation 1: Minmin Company made the following individual cash purchases: Land and building Machinery and office equipment Delivery equipment An appraisal disclosed the following fair values: Land Building Machinery Office equipment Delivery equipment P 6,000,000 1,800,000 500,000 Land Building Machinery P 1,000,000 3,000,000 800,000 400,000 350,000 Situation 2: Afable Company acquired the assets of another entity with the following fair value: P 1,000,000 5,000,000 2,000,000 The entity issued 60,000 shares with P100 par value in exchange. The share had a quoted price of P150 on the date of purchase of the property. Situation 3: A shareholder of WonWon Corporation gave the corporation a piece of land as a plant site. The fair value of this land is determined to be P500,000.
Transcribed Image Text:Situation 1: Minmin Company made the following individual cash purchases: Land and building Machinery and office equipment Delivery equipment An appraisal disclosed the following fair values: Land Building Machinery Office equipment Delivery equipment P 6,000,000 1,800,000 500,000 Land Building Machinery P 1,000,000 3,000,000 800,000 400,000 350,000 Situation 2: Afable Company acquired the assets of another entity with the following fair value: P 1,000,000 5,000,000 2,000,000 The entity issued 60,000 shares with P100 par value in exchange. The share had a quoted price of P150 on the date of purchase of the property. Situation 3: A shareholder of WonWon Corporation gave the corporation a piece of land as a plant site. The fair value of this land is determined to be P500,000.
Situation 4: YoYo Company paid cash for machinery, P900,000 subject to a 2% cash discount if paid within 15 days, and freight on machinery, P35,000. YoYo paid beyond the 15 day period and therefore did not take the cash discount. Situation 5: LaLa Company acquired furniture and fixtures by issuing a P400,000 two year noninterest-bearing note. In similar transactions, the entity has paid 12% interest. Round off present value factors to three decimal places (e.g., 6.667)
Transcribed Image Text:Situation 4: YoYo Company paid cash for machinery, P900,000 subject to a 2% cash discount if paid within 15 days, and freight on machinery, P35,000. YoYo paid beyond the 15 day period and therefore did not take the cash discount. Situation 5: LaLa Company acquired furniture and fixtures by issuing a P400,000 two year noninterest-bearing note. In similar transactions, the entity has paid 12% interest. Round off present value factors to three decimal places (e.g., 6.667)
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