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What is the cost of the building? What is the cost of machinery and equipment?

What is the cost of the building? What is the cost of machinery and 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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What is the cost of the building?

What is the cost of machinery and equipment?

The property, plant and equipment section of Zaragoza Corporation's statement of financial position at December 31, 2021 included the following items: Land Land Improvements Buildings Machinery and equipment P2,100,000 560,000 3,600,000 6,600,000 During 2022 the following data were available to you upon your analysis of the accounts P10,000,000 16,000,000 1,200,000 200,000 400,000 300,000 200,000 440,000 8,000,000 50,000 250,000 100,000 Cash paid on purchase of land Mortgage assumed on the land bought Realtor's commission Legal fees, realty taxes and documentation expenses Amount paid to relocate persons squatting on the property Cost of tearing down an old building on the land Amount recovered from the salvage of the building demolished Cost of fencing the property Amount paid to a contractor for the new building Building permit fees Excavation expenses Architect's fee Interest that would have been earned had the money used during the period of construction been invested in the money market Invoice cost of machinery acquired Freight, unloading, and delivery charges Customs duties and other charges Costs of installation and test run of machines 600,000 8,000,000 240,000 560,000 1,600,000 Royalty payment on machines purchased (based on units produced and sold) 480,000
Transcribed Image Text:The property, plant and equipment section of Zaragoza Corporation's statement of financial position at December 31, 2021 included the following items: Land Land Improvements Buildings Machinery and equipment P2,100,000 560,000 3,600,000 6,600,000 During 2022 the following data were available to you upon your analysis of the accounts P10,000,000 16,000,000 1,200,000 200,000 400,000 300,000 200,000 440,000 8,000,000 50,000 250,000 100,000 Cash paid on purchase of land Mortgage assumed on the land bought Realtor's commission Legal fees, realty taxes and documentation expenses Amount paid to relocate persons squatting on the property Cost of tearing down an old building on the land Amount recovered from the salvage of the building demolished Cost of fencing the property Amount paid to a contractor for the new building Building permit fees Excavation expenses Architect's fee Interest that would have been earned had the money used during the period of construction been invested in the money market Invoice cost of machinery acquired Freight, unloading, and delivery charges Customs duties and other charges Costs of installation and test run of machines 600,000 8,000,000 240,000 560,000 1,600,000 Royalty payment on machines purchased (based on units produced and sold) 480,000
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