LIMBO OBLIVIOUS Co. has the following transactions during the year.• Purchased building to be held as investment property for P4,000,000. Direct costs incurred amounted toP80,000. Costs of day-to-day servicing for the asset totaled P20,000.• Constructed building to be used as investment property. Total costs incurred include the following:Materials, labor, and overhead• Start-up costs• Operating lossesAbnormal amounts of wasted materials duringP8,000,000400,000200,000construction80,000• Land acquired with currently undetermined future use by issuing note payable with face amount ofP4,000,000 and a present value of P3,200,000.• Building acquired through finance lease to be rented out under various operating leases. The fair value ofthe building is P2,120,000 and the present value of minimum lcase payments is P2,000,000.Land to be used as investment property was acquired through exchange. Fair value of asset given up inexchange for the land is P12,000,000. Fair value of the land received is P14,400,000. Additional cashpaid for the land received is P2,000,000. The exchange has commercial substance.How much is the total cost of investment property on initial recognition? Show your computation.

These type of expense charged to P&L.

Answered: year. • Purchased building to be held…

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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At the end of Year 1, how much is the balance of the assets account Production-in-Progress if WW Guy uses the percentage of completion method? see the options in attached screenshot.
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Estimating Depreciation Expense and Book ValueEquipment costing $120,000, with a scrap value of $20,000 was purchased on January 1, by Global Communications, Inc. The estimated useful life of the equipment was 4 years and it was expected to generate 80,000 finished units of production. Units actually produced were 14,000 in Year 1 and 20,000 in Year 2. Required Complete the following table. Depreciation Expense Net Book Value Depreciation Method Year 1 Year 2 Year 1year-end Year 2year-end Straight-line Double-declining-balance Units-of-production PreviousSave AnswersFinish attempt ...
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1
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