The cost of the land, building and machinery would be reported at: a. Land= P 530,000; Building= P4,600,000; Machinery= P 2,370,000b. Land= P 500,000; Building= P4,400,000; Machinery= P 2,300,000c. Land= P 625,000; Building= P5,600,000; Machinery= P 2,675,000d. Land= P 655,000; Building= P5,400,000; Machinery= P 2,745,000 On Dec. 31, 2021, the property, plant and equipment account of Pearl Company include the details belowPlant assets acquired from Zee CompanyP 7,500,000Repairs made on building prior to occupancy200,000Special tax assessment125,000Construction of platform for machinery175,000Remodeling of office space in building including new partitions andPurchase of new machinery400,0001,000,000P 9,400,000Total Property, plant and equipmentIn exchange for the plant assets of Zee Company, Pearl Company ussued 50,000 shares with P 100par value. On the date of purchase, the share had a quoted price of P 150 and the plant assets hadthe following fair valueLandP500,000BuildingMachinery5,000,0001,500,000

It is a general principle in Accounting that the assets are…

Answered: s acqu | bartleby

Business

Accounting

s acqu

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Suppose the subject's net operating income is $100,000, the direct capitalization rate of the land is 3.5%, the direct capitalization rate of the improvements is 6.0%, and the value of the improvements is $750,000. What is the overall value of the subject property (round to the nearest thousand)? A. $2,321,000 ⒸB. $2,036,000 OC. $1,571,000 OD.$1,286,000
Cost of money is 14%. 2. Determine the capitalized cost of a structure that requires an initial investment of P1,500,000 and an annual maintenance of P200,000. Interest is 15%.
Alzparker Company constructed a building at a total actual cost of $30,000,000. Weighted-average accumulated expenditures during the construction period amounted to $23,000,000. As a result of financing arrangements, actual interest was $1,820,000, and avoidable interest was $1,600,000. What is the capitalized cost of the building?
Please Solve In 20mins
The cost of supplies (materials) used to test new equipment would be debited to which of the following accounts? a. Buildings Ob. Land c. Land Improvements Od. Machinery and Equipment
The land was cleared for RO 7,100. The cost of land would be recorded at:
Improvement of the production line resulting in an increase in productivity, $32,100 would be an expense in the period occured or would be capitalized and depreciated over the useful life of the asset?
As a Chief financial officer (CFO) recommend three actions you could take regarding the company's supply chain to reduce manufacturing cost of direct materials? Which of the three would be your priority and why?
Refer to the highest and best use analysis in table below. Use (a)Year 1 NOI (b)(r−g) (c)R (a÷c = d)Implied Property Value (PV) (e)Construction Cost of Building (d) − (e)Implied Land Value(Residual) Office $ 510,000 0.13−0.03 0.10 $ 5,100,000 $ 4,000,000 1,100,000 Retail $ 610,000 0.12−0.04 0.08 7,625,000 $ 6,750,000 875,000 Apartment $ 415,000 0.12−0.03 0.09 4,611,111 $ 3,000,000 1,611,111 Warehouse $ 410,000 0.10−0.02 0.08 5,125,000 $ 4,000,000 1,125,000 Required: Suppose that the warehouse income would grow at 3 percent per year instead of 2 percent. a. Does this change the highest and best use of the site? multiple choice Yes No b. What is the new implied land value? (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)