CPA REVIEW SCHOOL OF THE PHILIPPINES Manila PRACTICAL ACCOUNTING PROBLEMS | Saturday, April 18, 2015 Final Preboard Examination 4:00 p.m. to 7:00 p.m. SETA ‘MULTIPLE CHOICE: MARK FULLY with Pencil No. 2 the letter of your choice on the answer sheet provided. Make the mark DARK but do not use too much pressure. ERASURES ARE STRICTLY NOT ALLOWED. Questions 1 to 4 are based on the following: On January 1, 2015 prior to PASISR, Rude Company provided the following data in connection with its defined benefit plan: Fair value of plan assets 10,000,000 Unamortized past service cost 1,000,000 Projected benefit obligation 13.000,000) Prepaid (accrued benefit cost 2,000,000) The remaining vesting period for employees covered by the past service cost is 5 years. The entity adopted PASI9R on January 1, 2015. Transactions affecting the plan for 2015 are: Current service cost 2,500,000 Interest expense 1,300,000 Interest income on plan assets 1,000,000 Decrease in PBO due to changes in actuarial assumptions . ‘400,000 Contribution to the plan 3,500,000 Benefits paid to retirees 3,000,000 Actual return on plan assets 1,500,000 Present value of benefits settled in advance 800,000 Payment for benefits settled in advance 900,000 1, What is the employee benefit expense for 2015? - 2,900,000 . 3,900,000 . 2,800,000 d. 2,700,000 2. What is the fair value of plan assets on December 31, 2015? 11,100,000 12,000,000 11,200,000 10,600,000 3. What is the projected benefit obligation on December 31, 2015? a. 13,400,000 b. 13,000,000 ©. 12,600,000 4. 12,500,000 4, What is the accrued benefit cost to be reported on December 31, 2015? 1,500,000 3,000,008 2,400,000 2,000,0005. Fernando Company provided the following data on December 31, 2015: Trade accounts payable, including cost of goods recived on consignment P150,000 Accrued taxes payable Dividend payable as a result of bonus issue Customer's deposit Fernando Company as guarantor Bank overdraft Acerued electric bill Reserve for contingencies What amount should be shown as total liabilities on December 32, 2015? 2,820,000 2,720,000 2,370,000 2,420,000 neo 6. Anjanette Company had the following tiabilities on December 31, 2015: Accounts payable Unsecured notes, 8% due 7/1/2016 Accrued expenses Contingent liability Deferred tax liability Senior bonds, 7%, due 3/31/2016 Page 2 2,000,000 320,000 400,000 50,000 300,000 80,000 120,000 500,000 55,000 400,000 35,000 450,000 25,000 1,000,000 The contingent liability is an accrusl for possible loss on a P1,000,000 lawsuit filed against the entity. The legal counsel expects the suit to be settled in 2016 and has estimated that the entity will be liable for damages in the range of P450,000 to P750,000. The deferred tax liability is expected to reverse in 2016, What amount should be reported as total current Hiabilities on December 31, 2015? , a 515,000 b. 940,000 cc, 1,490,000 d. 1,515,000 7. On January 1, 2015, Mary Company purchased 25% of Ann Company ordinary shares. The purchase resulted in an excess fair value of P600,000. Mary appropriately carried this investment at equity and the balance in Mary’s investment account was P5,600,000 on December 31, 2015. Ann reported net income of P2,000,000 for the year ended December 31, 2015, and paid cash dividends to ordinary shareholders totaling P1,200,000 during 2015. How much did Mary pay for the 25% interest in Ann? 4,800,000 5,400,000 5,000,000 5,600,000 pesePage 3 8. Wyatt Company provided the following data on December 31, 2015: Petty cash fund 25,000 Cash on hand 500,000 Current account 1,250,000 Cash in sinking fond 1,300,000 Money market placement 1,000,000 Saving deposit ~ set aside for dividend payable on June 30, 2016 250,000 The petty cash fund included unreplenished petty cash vouchers of P10,000. The cash on hand included a customer check of P200,000 received on December 15, 2015 but dated January 15, 2016, The sinking fund is restricted for the payment of bond payable that is due «on July 31, 2017. What amount of cash and cash equivalents should be reported on December 31, 2015? a. 1,815,000 b. 2,815,000 c. 3,315,000 d, 4,315,000 9, Numb Company's year-end is December 31, 2015 and the 2015 financial statements were 10. authorized for issue on March 34, 2016. The entity had the following events: | * On February 1, 2016, the entity determined that the total cost of an equipment purchased is P3,700,000, The equipment was purchased on November 12, 2015 but unrecorded on December 31, 2015. * On March 15, 2016, the entity discovered that the 2015 depreciation expense was overstated by P470,000. = On March 20, 20%6, the entity issued 100,000 ordinary shares at par of P10 per share. * On March 27, 2016, the entity filed a case against another entity for patent infringement ‘Legal counsel assessed that it is probable that the entity will win the case for an amount of P550,000. ‘What amount should be reported as adjusting events on December 31, 2015? 4,720,000 . $,170,000 4,170,000 |. 3,700,000 aeoge Mitch Company prepared the following reconciliation for the first year of operations: Pretax financial income for 2015 4,500,000 ‘Tax exempt interest (375,000) Temporary difference (1,125,000) ‘Taxable income 3,000,000 ‘The temporary difference will reverse evenly in 2016 and 2017, at an enacted tax rate of 35% in 2016 and 32% in 2017, The enacted tax rate for 2015 is 30%. What amount should be reported as deferred tax asset or liability on December 31, 2015? a. 376,875 asset b. 376,875 liability ©. 360,000 asset d. 360,000 liabilityPage 4 1, Grey Company measured inventory at LCNRV. Data regarding the items in goods in process inventory are presented below. Markers Pens ‘Highlighters Historical cost 24,000 18,800 30,000 Selling price 36,000 36,000 36,000 Estimated cost to complete and sel! 4,800 4,800 6,800 Replacement cost 20,800 16,800 31,800 ‘Normal profit margin based on selling price 25% 25% 10% ‘What is the measurement value of the goods in process inventory? 72,000 72,800 67,600 69,400 ee se: 12. Papsy Company reported the following components of other comprehensive income for the current year: Unrealized loss on futures contract designated as cash flow hedge 500,000 Revaluation surplus during the year 350,000 Unrealized gain on nontrading equity investment measured at FVOCT 350,000 Remeasurement gain on employee benefits 320,000 Gain on translation of financial statements of a foreign operation 150,000 Loss ftom change in fair value attributable to credit risk of a financial liability designated at FVPL. 290,000 1n preparing the statement of comprehensive income, what net amouat should be reported as components of other comprehensive income that may not be recycled to profit or loss? 350,000 420,000 620,000 470,000 eo ee 13, Rachelle Company reported the following accounts receivable on December 31, 2015: Customer A 1,000,000 Customer B 1,500,000 Customer C 2,000,000 Customer D 2,500,000 All other accounts receivable not individually significant 3,500,000 ‘The entity determined that Customer A receivable is totally impaired and Customer B seceivable is impaired by P700,000. The other receivables from Customers C and D are not considered impaired. The entity determined that a composite rate of 10% is appropriate to measure impairment on the remaining accounts receivable, What is the total impairment loss of accounts receivable for 2015? 2,500,000 2,080,000 1,050,000 2,750,000 BesePage 5 14, Karl Company prepared an aging of sccounts receivable on December 31, 2015 and determined that the net realizable value of the accounts receivable at that date is P5,000,000. Accounts receivable on December 31, 2014 4,800,000 Accounts receivable on December 31, 2015 5,400,000, Allowance for doubtful accounts on December 31, 2014 : 600,000 Accounts written off as uncollectible during 2015 500,000 What was the bad debt expense for 2015? 500,000 300,000 400,000 700,000 nose 15. Nickel Company reported the following transactions for the month of June: Purchases Sales June 1 (balance) 800 @ P365 June 2 600 @ P550 3 2,200 @ 310 6 1,600@ 550 7 1,200@ 330 9 1,000@ 550 18 1,800@ 340 10 400@ 600 2 500 @ 350 18 1,400@ 600 25 200@ 600 What is the cost of ending inventory on a FIFO perpetual basis? 411,000 416,000 429,000 447,000 Bese 16, Beaver Company purchased land and an existing usable building for P9,000,000."The fair value of the building is P2,000,000. The entity paid P700.000 to immediately tear down the building on the Jand to construct a new building for own use. Legal fees of P65,000 were paid for making the purchase. Architect fees were P405,000. Liability insurance during construction cost P135,000 and excavation cost P120,000. The contract price paid to the contractor for the new building was P13,570,000. A one -time assessment made by the city for sidewalks was P75,000. The entity installed lighting and signage at a cost of P110,000. ‘What is the cost of the new building? 15,040,000 16,930,000 14,930,000 14,230,000 17. During the current year, Kam Company began offering goods to selected retailers on a consignment basis. The following information was derived from the accounting records: Beginning inventory 1,220,000 Purchases 5,400,000 Freight in 100,000, Transportation to consignees 50,000 Freight out 350,000 Ending inventory — held by Kam 1,430,000 Ending inventory ~ held by consignees 200,000 ‘What amount should be reported as cost of goods sold? 5,470,000 5,070,000 5,120,000 5.270.000 aesPage 6 18, Kristofferson Company provided the following information pertaining to nontrading equity investments measured at fair value through other comprehensive income: December 31, 2015 December 31, 2014 Cost 2,000,000. 2,000,000 Market value 2,400,000 1,800,000 Differences between cost and market value are considered to be temporary. The decline in market value was properly accounted for on December 3}, 2014, What is the amount of unrealized gain that should be reported as other comprehensive income for the year ended December 31, 20157 400,000 200,000 600,000 0 pegs 19, On January 15, 2015, Veejay Company purchased 100,000. shares of Diamond Company for P25 per share, The investment was appropriately accounted for at FVOCI. The market price of the share was P24 on December 31, 2015. During 2016, Diamond experienced severe financial difficulties and Veejay disposed of the entire investment in Diamond for P10 per share on November 10, 2016. What amount should charged to retained earnings as a result of the disposal of the investment in 2016? 1,400,000 1,500,000 100,000 0 pegP 20,On January 1, 2015, Netherlands Company purchased 15% of Nagoya Company's outstanding ordinary shares for PS,000,000, Netherlands Company is the largest single sharcholder in Nagoya and Netherland’s officers are majority of Nagoya’s board of directors. Nagoya teporied net income of P4,000,000 and paid dividend of P1,000,000, What amount of income is recognized by Netherlands for the year ended December 31, 2015? 150,000 450,000 600,000 a bere 21. Noreen Company acquired 30% of another entity's voting shares on January 1, 2015 for 2,000,000. The investor used the equity method to account for investment in associate. During 2015, the investee carned P800,000 and paid dividends of P500,000. During 2016, the investee earned P1,000,000 and paid dividends of 300,000 on April 1 and P300,000 on October 1. The investee’s income was eamed evenly throughout the year. On July 1, 2016, the investor sold half of the investment in associate for P1,320,000 cash, What is the gain on sale of the investment in 2016? 200,000 275,000 320,000 245,000 ap gePage 7 22, Siquijor Company was organized in june 2015. The following transactions pertain to land 23 24, and building: June 1 Organization fees paid to the state 150,000 30 Land and an old building with fair value P1,000,000 3,000,000 30 Corporate organization costs 300,000 July 1 Title clearance fees 50,000 Aug. 31 Cost of razing old building to make room for new building 100,000 Sept. 1. Salaries of Siquijor executives with no participation in construction 600,000 Dec 31 Land real esiate tax for 6-month period ended December 31, 2015 90,000 31 Cost of new building completed and occupied on this date 8,000,000 ‘What is the cost of the land? a. 2,140,000 b. 2,050,000 . 3,050,000 4. 2,095,000 Beach Company provided the following data on December 31, 2015: Unamortized bond issue cost 150,000 Organization cost 200,000 Losses incurred in the early years of the entity's operations $00,000, ‘Computer software (integral part of a computer controlled machine) 1,000,000 Patent 1,500,000 Amount set up by the Board of Directors as goodwill 400,000 Franchise 2,000,000 What total amount of intangible assets should be recognized on December 31, 2015? 3,500,000 4,500,000 3,700,000 3,900,000 pegs |. On January 1, 2013, Ban Company signed an eight-year lease for office space. The entity has the option to renew the lease for an additional six-year period on or before January 1, 2019. In early part of 2015, the entity incurred the following costs: Improvements to the leased premises with useful life of 10 years 5,400,000 Office furniture and equipment with usefu! life of 8 years 2,400,000 Moveabie assembly line equipment with useful life of $ years 1,800,000 On December 31, 2013, Ban’s intention as to the exereise of the renewal option is uncertain. A full depreciation of leasehold improvements is taken in the year of acquisition. On December 31, 2015, what amount of accumulated depreciation of leasehold improvements should be reported? a. 1,200,000 b, 1,300,000 c. 540,000 & 900,00025, Juanico Company provided the following information for 2015: Current period depreciation on the building housing R and D activities 1,800,000 Cost of market research study 1,000,000, Current period depreciation on a machine used in R and D activities 500,000 Salary of R and D director 1,200,000 Salary of VP who spends % of his time overseeing R and D activities 2,400,000 ‘What total amount should be recognized as R and D expense for 2015? a. 4,800,000 b. 6,600,000 cc. 5,600,000 a. 3,800,000 26, On November 5, 2015, a Muntinlupa Company truck was in an accident with an auto driven by Murcia, Muntinlupa received notice on January 15, 2016 of a lawsuit for P900,000 damages for personal injuries suffered by Murcia. Muntinlupa’s counsel believed it is probable that Murcia will be awarded an estimated amount in the range between P500,000 and P800,000, and each amount in the range is as likeiy as any other. The 2015 financial statements were issued on March 31, 2016. What amount of provision should Muntinlupa accrue on December 31, 2015? 500,000 650,000 900,000 0 eere 27. On January 1, 2015, Pasig Company issued 9% bonds with face amount of P5,000,000 which mature on January 1, 2025. The bonds were issued for 4,693,000 to yield 10% and the entity incurred P250,000 bond issue cost. Interest is payable annually on December 31. The entity elected to use the fair value option of measuring financial liabilities. On December 31, 2015, the fair value of the bonds was P5,200,000 and it was determined that out of the total fair value change, a P75,000 loss was attributable to the entity’s credit risk, What amount of change in fair value is recognized in profit or loss for the year ended December 31, 2015? a, 432,000 b, 507,000 682,000 d. 757,000 28.0n January 1, 2015, Tabuk Company leased an automobile from Bleu Company for executive use, The useful life of the automobile is 6 years. The lease required Tabuk to make five annual payments of P600,000 beginning January 1, 2015. At the end of the lease term, December 31, 2019, a third party related to Bleu guaranteed the residual value of the automobile at P300,000. The lease qualified as a finance lease. The interest rate implicit in the lease is 10%. What amount of depreciation should Tabuk recognize in 2015? (Round PV factors to 2 decimals.) 379,000 537,600 500,400 417,000 eoge 29. ilocos Company is indebted to a bank under a P6,000,000, 10% threc-ycar note dated December 31, 2012. Because of financial difficulties, the entity owed accrued interest of P600,000 on December 31, 2015. Under a debt restructuring on December 31, 2015, the bank agreed to settle the note and accrued interest for a land having a fair value of P5,000,000. The cost of the land is P3,500,000. In the 2015 income statement, what amount should be reported by the borrower as gain on debt restructuring under US GAAP? a. 1,000,000 b. 1,500,000 3,100,000 d. 1,600,000Page 9 30. Carisse Company has established a defined benefit pension plan for the employees. Annual payments under the pension plan are equal to 3% of an employec’s highest lifetime salary multiplied by the number of years with the entity. An employee's salary in 2015 was 300,000. The employee is expected to retire in 10 years, and the salary increases are expected to average 4% per year during that period. As of December 31, 2015, an employee has worked for 12 years. The future value of 1 at 4% for 10 periods is 1.48. What is the amount of annual pension payment that be used in computing the employee's projected benefit obligation on December 31, 2015? 8. 108,000 b. 159,840 c, 198,000 d. 293,040 31. During 2015, Malolos Company issued 50,000, P100 par value convertible preference shares for P120 per share. One preference share can be converted into three ordinary shares at P50 par value. On December 31, 2015, when the market value of the ordinary share was P60, all of the preference shares were converted, Whut amount should be debited to retained earnings as a result of the conversion? 8, 3,000,000 b. 1,500,000 cc. 2,500,000 d, 0 32. On July 1, 2015, Chase Company issued rights to shareholders to subscribe to additional ordinary shares. One right was issued for each share owned. A shareholder could purchase one additional share for five rights plus P150 cash. The rights expire on September 30, 2015. On July 1, 2015, the market price of a share with the right attached was P200, while the market price of the right alone was P15. The shareholders’ equity on June 30, 2015, comprised the following: Ordinary share capital, P100 par, 50,000 shares issued and outstanding. 5,000,000 Share premium 1,000,000 Retained earnings 1,500,000 ‘What is the total contributed capital assuming all stock rights are exercised? 7,500,000 9,000,000 7,000,000 6,000,000 pegs 33. On January 1, 2015, Digos Company granted share options to each of the 300 employees working int the sales department. The share options vest at the end of a three-year period provided that the employees remain in the entity’s employ and provided the volume of sales will increase by more than 10% per year. The fair value of each share option on grant date is P20. if the sales increase by more than 10%, each employee will receive 200 share options. If the sales increase by more than 15%, each employee will receive 300 share options. On December 31, 2015, the sales increased 6y more than 10%, and no employees have left the entity, On December 31, 2016, the sales increased by more than 15% and 20 employees left the entity, What amount of compensation expense should be recognized for 2016? a. 400,000 b. 860,000 e, 560,000 d. 720,000__— 134, In 2015, Cave Company bought $0,000 shares of Palay Company at a cost of P1,000,000. On January 15, 2016, Cave deciared all of the Palay shares as property dividend to shareholders of record on February 1, 2016 and payable on February 15, 2016. During 2016, the Palay shares had a market value of P1,200,000 on January 15, P1,500,000 on February 1 and 1,800,000 on February 15. If all nominal accounts are properly closed, what is the net effect of these transactions on retained earnings during 2016? 1,000,000 1,200,000 ©. 1,500,000 4. 1,800,000 35. On January 1, 2015, Cruz Company had 50,000 ordinary shares outstanding with a P100 par value, On July 1, 2015, a bonus issue was made in the ratio of one additional ordinary share foreach original share. The net income for 2015 was P2,000,000. What amount of basic EPS should be reported in the 2015 income statement? 20.00 10.00 26.67 13.33 eess 36. John Company reported the following capital structure: 2015 2014 Ordinary shares outstanding 110,000 110,000 Convertible preference shares outstanding 10,000 10,000 During 2015, the entity paid preference dividends of P3 per share. ‘The preference shares are convertible into 20,000 ordinasy shares. Net income for 2015 was P850,000. The income tax rate is 30%. What amount should be reported as diluted eamings per share for 2015? 631 6.54 7.08 745 eoge 37,Norway Company granted 200 share appreciation rights to cach of 500 employees on January 1, 2015. The rights ate due to vest on December 31, 2018 with payment being made ‘on December 31, 2019. Only 80% of the awards vest. Share prices are January 1, 2015 -150 (predetermined price), December 31, 2015 180, December 31, 2018 -210, December 31, 2019 190, How should the settlement of the appreciation rights be accounted for in 2019? Payment of 3,200,000 and no gain is recorded. Payment of 4,800,000 and no gain recorded. Payment of P1,600,000 and no gain of 3,200,000 recorded. Payment of P3,200,000 and gain of P 1,600,000 recorded. sore 38. Mold Company disclosed the following changes in the account balances: Cash 375,000 dectease Inventory 2,500,000 increase Accounts receivable 100,000 increase Accounts payable 170,000 decrease During the year, the entity borrowed P2,500,000 in notes from a bank and paid off notes of 1,000,000 and interest of P1$0,000. Interest of P75,000 is accrued at year end, There was no accrued interest at the beginning of the year. The proprietor transferred trading securities to the business and these were sold for P650,000 to finance purchase of inventory. The proprietor also made withdrawals of P200,000 in the current year. What is the net income or loss for the year? 820,000 income 630,000 loss 220,000 ineome 370,000 income ae oPPage 11 39, Jude! Company acquired rights to a potent under a licensing agreement that required an advance royalty payment when the agreement was signed. The entity remitted royaities earned and due under the agreement on October 31 each year, Additionally, on the same date, the entity paid, in advance, estimated royalties for the next year. The entity adjusted prepaid royalties at year-end, The entity provided the following information for the year ended December 31, 2015 January 1 Prepaid royalties 650,000 October 31 Royalty payment charged to royalty expense 1,100,000 December 31 ‘Year-end credit adjusiment to expense 250,000 ‘On December 31, 2015, what amount should be reported as prepaid royalties? “a, 250,000 b. 400,000 ec. 850,000 d. 900,000 40. Lester Company had a balance of P820,000 in the professional fees expense account on December 31, 2015, before considering year-end adjustments relating to the following: = Consultants were hired for a special project at a total fee not to exceed P650,000. The entity had recorded 550,000 of this fee based on billings for work performed in 2015. + Fhe attomey’s letter requested by the auditors dated January 31, 2016, indicated that Jegal fees of P60,000 were billed on January 15, 2016 for work performed in November 2015, end unbilled fees for December 2015 were P70,000. ‘What amount should be reported for professional fees expense for 2015? a. 1,050,000 b, 950,000 c. $80,000 4. 820,000 41, Abigail Company provided the following infortnation pertaining to operating segments for the year ended December 31, 2015: Total revenue 80,000,000 Sales to external customers included in total revenue 30,000,000 Extemel revenue reported by reportable operating segments must be at least what amount? a. 22,500,000 b, 30,000,000 ce. 60,000,000 4. 37,500,000 42,On January 1, 2015, Harold Company discovered that it had incorrectly expensed a 2,100,000 machine purchased on January 1, 2012, The entity estimated the machine's original useful life at 14 years and the residual value at P100,000. The entity used ‘the straight line method of depreciation and is subject to 2 30% tax rate, In the December 31, 2015 financial statements, what amount should be reported as a prior period error? a. 1,659,000 b, 1,029,000 ce. 1,050,000 d. 1,680,000‘Questions 43 to 46 are based on the following data: Page 12 Lyndon Company provided the following information for the year ended December 31, 2015: Increase in long-term debt Purchase of treasury shares Depreciation and amortization Gain on sale of equipment Proceeds from issuance of ordinary shares Purchase of equipment for cash Proceeds from sale of equipment Payment of dividends Net income Increase (decrease) in working capital accounts: Accounts receivable Inventory Trade notes payable Accounts payable Income tax payable Cash balance, January 1, 2015 43. What is the net cash provided by operating activities? 7,600,000 7,500,000 6,800,000 7,700,000 44. What is the net cash used by investing activities? a. 4,000,000 b. 4,300,000 ©. 3,600,060 d. 400,000 45. What is the net cash provided by financing activities? a. 1,400,000 b. 1,100,000 c. 2,100,000 d. 800,000 46, What is the cash balance on December 31, 2015? 2, 7,500,000 b. 8,900,000 ¢. 5,300,000 d, 6,800,000 600,000 500,000 1,900,000 100,000 2,000,000 4,000,000 400,000 700,000 4,500,000 1,500,000 ( 800,000) 4,000,000 1,200,000 (300,000) 1,500,000Page 15 Questions 47 to $0 are based on the following data: January 1,2015, Melan Company disclosed the following balances: Land 4,000,000 Land improvements 1,300,000 Buildings 20,000,000 Machinery and equipment 8,000,000 During the current year, the following transactions occurred: * A tract of land was acquired for P2,000,000 cash as a building site. * A plant facility consisting of land and buitding was acquired in exchange for 200,000 shares of the entity. On the acquisition date, eack share had a quoted price of P45 on a stock exchange. The plant facility was carried on the seller's books at P1,600,000 for land and 5,400,000 for the building at the exchange date, Current appraised values for the land and the building, respectively, are P2,000,000 and P8,000,000. The building has an expected life of forty years with a P200,000 residual value * Items of machinery and equipment were purchased at a total cost of P4,000,000. Additional costs incurred were freight und unloading P100,000 and installation 300,000. The equipment has a useful life of ten years with no residual value. * Expenditures totaling P1,200,000 were made for new parking lot, street and sidewalks at the entity's various plant locations. These expenditures had an estimated useful life of fifteen years. * Research and development costs were P1,100,000 forthe year. * A machine costing P200,000 on January 1, 2008 was scrapped on June 30, 2045. Straight line depreciation had been recorded on ihe basis of a 10-year life with no residuat value. A machine was sold for P500,000 on July 1, 2015. Original cost of the machine sold was 700,000 on January 1, 2012, and it was depreciated on the straight line basis over an estimated useful life of eight years and a residual value of P50,000, 47. What is the total cost of land on December 31, 2015? 7,800,000 7,600,000 8,000,000 6,800,000 aore 48. What is the total cost of land improvements on December 31, 2015? 4,200,000 3,600,000 1,300,000 2,500,000 Be ge 49. What is the total cost of buildings on December 31, 2015? 28,000,000 25,400,000 27,200,000 27,000,000 pose 50. What is total cost of machinery and equipment on December 31, 2015? 12,400,000 11,500,000 11,000,000 11,700,000 eoge om,