Professional Documents
Culture Documents
I. Identify the following assets as ordinary or capital by checking ( / ) the proper column:
Ordinary Capital
1. Residential land …………………………... _______ ______
2. Cargo truck …………………………….. _______ ______
3. Residential House ………………………… _______ ______
4. Rest house ……………………………….. _______ ______
5. School building …………………………. _______ ______
6. Store ……………………………. _______ ______
7. Inventory ……………………………. _______ ______
8. Bus ……………….. ……………………. _______ ______
9. Fish pond ……………………………….. _______ ______
10. Taxi …………………………………….. _______ ______
11. Warehouse …………………………….. ________ ______
12. Fishing Boat …………………………… ________ ______
13. Investment in Treasury Bills ………….. ________ ______
14. Residential lot (by a subdivision owner).. ________ ______
15. Rice land ………………………………. ________ ______
II. Problem Solving.
A. A contractor built a portion of the Iloilo Airport for 2 years for P100M. The construction started in year
2017 and Labor and Materials applied are as follows:
Labor Material
2017 P10M P15M
2018 P20M P35M
Percentage of completion are: 2017 40% was completed and finally completed in 2018
1. Using completed contract method, total gross income for year 2017 is P______________.
2. Using percentage of completion method, total gross income for year 2017 is P______________.
3. Using percentage of completion method, total gross income for year 2018 is P________________.
4. Using completed contract method, total gross income for year 2018 is P________________.
B. Lease per contract a year is P 100,000 and increased by 5% starting the second year.
Real Property tax of P25,000/year shall be paid by the Lessee
Contract resumes: Jan 1, 2015
Term of contract: 15 years
Value of building completed: P20,000,000
Date building was constructed/completed: Jan 1, 2018
Estimated life of building: 20 years
G. A company reported:
2017 2018 2019
Capital Gain (all long term) P 25,000 30,000 P40,000
Capital Loss (all short term) (20,000) (4,000)
Ordinary Gain 10,000 -
Ordinary Loss - (6,000) (10,000)