The client reports on a calendar - year basis.

On May 1, 1994, the client bought a

machine for P360,000. The machine has an estimated useful life of 10 years with no
salvage value. On May 1, 1997, P45,000 was spent to overhaul the machine. The
overhaul extended the life of the machine for 2 years. On September 30, 1998, the
machine was sold for P180,000.
Compute for the depreciation expense of the machine for the year 1997.
34000

 
The client reports on a calendar - year basis. On May 1, 1994, the client bought a
machine for P360,000. The machine has an estimated useful life of 10 years with no
salvage value. On May 1, 1997, P45,000 was spent to overhaul the machine. The
overhaul extended the life of the machine for 2 years. On September 30, 1998, the
machine was sold for P180,000.
Compute for the gain or loss on the sale of the machine.
70250

 
The Corporation, a calendar - year corporation, purchased a machine for P130,000 on
January 1, 1995. At the date of purchase, the Corporation incurred the following
additional costs:
                Loss on sale of old machinery                                          P 2,000
                Freight - in                                                                               1,000
                Installation cost                                                                      4,000
                Testing cost prior to regular operation                                  600
The estimated salvage value of the machine was P 10,000 and the Corporation
estimated that the machine would have a useful life of 20 years, with depreciation being
computed on the straight- line method. In January, 1997, accessories costing P 7,200
were added to the machine in order to reduce its operating costs. These accessories
neither prolonged the machine's life nor did they provide any additional salvage value.
What is the total cost of the machine acquired on January 1, 1997?
135000

 
The Corporation, a calendar - year corporation, purchased a machine for P130,000 on
January 1, 1995. At the date of purchase, the Corporation incurred the following
additional costs:
                Loss on sale of old machinery                                          P 2,000
                Freight - in                                                                               1,000
                Installation cost                                                                      4,000
                Testing cost prior to regular operation                                  600
The estimated salvage value of the machine was P 10,000 and the Corporation
estimated that the machine would have a useful life of 20 years, with depreciation being
computed on the straight- line method. In January, 1997, accessories costing P 7,200
were added to the machine in order to reduce its operating costs. These accessories
neither prolonged the machine's life nor did they provide any additional salvage value.
The 1997 depreciation expense for the accessories is?
 
400

 
The Corporation, a calendar - year corporation, purchased a machine for P130,000 on
January 1, 1995. At the date of purchase, the Corporation incurred the following
additional costs:
                Loss on sale of old machinery                                            P 2,000
                Freight - in                                                                               1,000
                Installation cost                                                                      4,000
                Testing cost prior to regular operation                                    600
The estimated salvage value of the machine was P 10,000 and the Corporation
estimated that the machine would have a useful life of 20 years, with depreciation being
computed on the straight- line method. In January, 1997, accessories costing P 7,200
were added to the machine in order to reduce its operating costs. These accessories
neither prolonged the machine's life nor did they provide any additional salvage value.
The 1997 total depreciation expense is?
6680

 
Espresso Company operates a factory that contains a large number of machines
designed to produce knitted garments.  These machines are generally depreciated at
10% per annum on a straight-line basis.  In general, machines are estimated to have a
residual value on disposal of 10% of cost.  At July 1, 2013, Espresso Company had a
total of 64 machines, and the balance sheet showed a total cost of P4,200,000 and
accumulated depreciation of P1,300,000.  During the 2013-2014 period, the following
transactions occurred:
 1. On September 1, 2013, a new machine was acquired for P150,000. This
machine replaced two other machines.  One of the two replaced machine
was acquired on July 1, 2010 for P82,000.  It was traded in on the new
machine, with Espresso, Inc. making a cash payment of P88,000 on the
new machine. The second replaced machine had a cost of P90,000 on
April 1, 2011 and was sold for P73,000.
2. On January 1, 2014, a machine that had cost of P40,000 on July 1, 2011
was retired from use and sold for scrap for P5,000.
3. On January 1, 2014, a machine that had been acquired on January 1,
2011 for P70,000 was repaired because its motor had been damaged
from overheating. The motor was replaced at a cost of P48,000.  It was
expected that this would increase the life of the machine by an extra two
years.    
4. On April 1, 2014, Espresso Company fitted a new form of arm to a
machine used for putting special designs onto garments. The arm cost
P12,000.  The machine had been acquired on April 1, 2011 for P100,000.
The arm can be used on a number of other machines when required and
has a 15-year life. It will not be sold when any particular machine is
retired, but retained for use on other machines.

The reporting date is June 30.

Question:  The accumulated depreciation as of September 1, 2013, of the machine that was
acquired on July 1, 2010 amounted to
23370

 
Espresso Company operates a factory that contains a large number of machines
designed to produce knitted garments.  These machines are generally depreciated at
10% per annum on a straight-line basis.  In general, machines are estimated to have a
residual value on disposal of 10% of cost.  At July 1, 2013, Espresso Company had a
total of 64 machines, and the balance sheet showed a total cost of P4,200,000 and
accumulated depreciation of P1,300,000.  During the 2013-2014 period, the following
transactions occurred:

1. On September 1, 2013, a new machine was acquired for P150,000. This

machine replaced two other machines.  One of the two replaced machine
was acquired on July 1, 2010 for P82,000.  It was traded in on the new
machine, with Espresso, Inc. making a cash payment of P88,000 on the
new machine. The second replaced machine had a cost of P90,000 on
April 1, 2011 and was sold for P73,000.
2. On January 1, 2014, a machine that had cost of P40,000 on July 1, 2011
was retired from use and sold for scrap for P5,000.
3. On January 1, 2014, a machine that had been acquired on January 1,
2011 for P70,000 was repaired because its motor had been damaged
from overheating. The motor was replaced at a cost of P48,000.  It was
 expected that this would increase the life of the machine by an extra two
years.    
4. On April 1, 2014, Espresso Company fitted a new form of arm to a
machine used for putting special designs onto garments. The arm cost
P12,000.  The machine had been acquired on April 1, 2011 for P100,000.
The arm can be used on a number of other machines when required and
has a 15-year life. It will not be sold when any particular machine is
retired, but retained for use on other machines.

The reporting date is June 30.

Question:  The gain (loss) on the sale of the second replaced machine in (1) on September 1,
2013 amounted to
 
2575

 
Espresso Company operates a factory that contains a large number of machines
designed to produce knitted garments.  These machines are generally depreciated at
10% per annum on a straight-line basis.  In general, machines are estimated to have a
residual value on disposal of 10% of cost.  At July 1, 2013, Espresso Company had a
total of 64 machines, and the balance sheet showed a total cost of P4,200,000 and
accumulated depreciation of P1,300,000.  During the 2013-2014 period, the following
transactions occurred:

1. On September 1, 2013, a new machine was acquired for P150,000. This

machine replaced two other machines.  One of the two replaced machine
was acquired on July 1, 2010 for P82,000.  It was traded in on the new
machine, with Espresso, Inc. making a cash payment of P88,000 on the
new machine. The second replaced machine had a cost of P90,000 on
April 1, 2011 and was sold for P73,000.
2. On January 1, 2014, a machine that had cost of P40,000 on July 1, 2011
was retired from use and sold for scrap for P5,000.
3. On January 1, 2014, a machine that had been acquired on January 1,
2011 for P70,000 was repaired because its motor had been damaged
from overheating. The motor was replaced at a cost of P48,000.  It was
expected that this would increase the life of the machine by an extra two
years.    
4. On April 1, 2014, Espresso Company fitted a new form of arm to a
machine used for putting special designs onto garments. The arm cost
P12,000.  The machine had been acquired on April 1, 2011 for P100,000.
The arm can be used on a number of other machines when required and
has a 15-year life. It will not be sold when any particular machine is
retired, but retained for use on other machines.

The reporting date is June 30.

Question:  The carrying amount of the machine whose motor was replaced on January 1, 2014
after replacement is
99100

 
Espresso Company operates a factory that contains a large number of machines
designed to produce knitted garments.  These machines are generally depreciated at
10% per annum on a straight-line basis.  In general, machines are estimated to have a
residual value on disposal of 10% of cost.  At July 1, 2013, Espresso Company had a
total of 64 machines, and the balance sheet showed a total cost of P4,200,000 and
accumulated depreciation of P1,300,000.  During the 2013-2014 period, the following
transactions occurred:

1. On September 1, 2013, a new machine was acquired for P150,000. This

machine replaced two other machines.  One of the two replaced machine
was acquired on July 1, 2010 for P82,000.  It was traded in on the new
machine, with Espresso, Inc. making a cash payment of P88,000 on the
new machine. The second replaced machine had a cost of P90,000 on
April 1, 2011 and was sold for P73,000.
2. On January 1, 2014, a machine that had cost of P40,000 on July 1, 2011
was retired from use and sold for scrap for P5,000.
3. On January 1, 2014, a machine that had been acquired on January 1,
2011 for P70,000 was repaired because its motor had been damaged
from overheating. The motor was replaced at a cost of P48,000.  It was
expected that this would increase the life of the machine by an extra two
years.    
4. On April 1, 2014, Espresso Company fitted a new form of arm to a
machine used for putting special designs onto garments. The arm cost
P12,000.  The machine had been acquired on April 1, 2011 for P100,000.
The arm can be used on a number of other machines when required and
has a 15-year life. It will not be sold when any particular machine is
retired, but retained for use on other machines.

The reporting date is June 30.

Question:  The new arm fitted to a machine on April 1, 2014 should be depreciated over
(your answer should be 00 years)
15

 
Espresso Company operates a factory that contains a large number of machines
designed to produce knitted garments.  These machines are generally depreciated at
10% per annum on a straight-line basis.  In general, machines are estimated to have a
residual value on disposal of 10% of cost.  At July 1, 2013, Espresso Company had a
total of 64 machines, and the balance sheet showed a total cost of P4,200,000 and
accumulated depreciation of P1,300,000.  During the 2013-2014 period, the following
transactions occurred:

1. On September 1, 2013, a new machine was acquired for P150,000. This

machine replaced two other machines.  One of the two replaced machine
was acquired on July 1, 2010 for P82,000.  It was traded in on the new
machine, with Espresso, Inc. making a cash payment of P88,000 on the
new machine. The second replaced machine had a cost of P90,000 on
April 1, 2011 and was sold for P73,000.
2. On January 1, 2014, a machine that had cost of P40,000 on July 1, 2011
was retired from use and sold for scrap for P5,000.
3. On January 1, 2014, a machine that had been acquired on January 1,
2011 for P70,000 was repaired because its motor had been damaged
from overheating. The motor was replaced at a cost of P48,000.  It was
expected that this would increase the life of the machine by an extra two
years.    
4. On April 1, 2014, Espresso Company fitted a new form of arm to a
machine used for putting special designs onto garments. The arm cost
P12,000.  The machine had been acquired on April 1, 2011 for P100,000.
The arm can be used on a number of other machines when required and
has a 15-year life. It will not be sold when any particular machine is
retired, but retained for use on other machines.

The reporting date is June 30.

Question: The depreciation expense on all the machines for the year ending June 30, 2014
would amount to
376560

 
Among the account balances of Toronto Corporation at December 31, 2013 are the
following:

Patent, net P2,450,000

Installment contract receivable 7,200,000

Relevant transactions and other information for 2014 were as follows:

1. The patent was purchased for P3,150,000 on September 1, 2010. On

that date, the remaining legal life was fifteen years, which was also
determined to be the useful life.
2. The installment contract receivable represents the balance of the
consideration received from the sale of a factory building to Raptors
Company on March 31, 2012, for P12,000,000. Raptors made a
 P3,000,000 down payment and signed a five-year 13% note for the
P9,000,000 balance.  The first of equal annual principal payments of
P1,800,000 was received on March 31, 2013 together with interest to that
date.  The note is collateralized by the factory building with a fair value of
P10,000,000 at December 31, 2014.  The 2014 payment was received on
time.
3. On January 2, 2014, Toronto purchased a trademark for P2,500,000.
Toronto considers the life of the trademark to be indefinite.
4. On May 1, 2014, Toronto sold the patent in exchange for a P5,000,000
non-interest bearing note due on May 1, 2017. There was no established
exchange price for the patent, and the note had no ready market.  The
prevailing rate of interest for a note of this type at May 1, 2014 was 14%. 
The present value of 1 for three periods at 14% is 0.675.  The collection
of the note receivable is reasonably assured.
5. On July 1, 2014, Toronto paid P18,800,000 for 750,000 ordinary shares
of Canada Corporation, which represented a 25% investment in Canada.
The fair value of all of Canada’s identifiable assets net of liabilities equals
their carrying amount of P64,000,000.  The market price of Canada’s
ordinary share on December 31, 2014 was P26.00 per share.
6. Canada reported net income and paid dividends of

Six months ended Net income Dividends per share

6/30/14 P5,760,000 None

12/31/14 7,040,000 P2.00

Dividend was paid on November 30, 2014.

QUESTION:  Based on the above and the result of your audit, compute for the Gain on
sale of patent.
995000

 
Among the account balances of Toronto Corporation at December 31, 2013 are the
following:

Patent, net P2,450,000

Installment contract receivable 7,200,000

Relevant transactions and other information for 2014 were as follows:

 1. The patent was purchased for P3,150,000 on September 1, 2010. On
that date, the remaining legal life was fifteen years, which was also
determined to be the useful life.
2. The installment contract receivable represents the balance of the
consideration received from the sale of a factory building to Raptors
Company on March 31, 2012, for P12,000,000. Raptors made a
P3,000,000 down payment and signed a five-year 13% note for the
P9,000,000 balance.  The first of equal annual principal payments of
P1,800,000 was received on March 31, 2013 together with interest to that
date.  The note is collateralized by the factory building with a fair value of
P10,000,000 at December 31, 2014.  The 2014 payment was received on
time.
3. On January 2, 2014, Toronto purchased a trademark for P2,500,000.
Toronto considers the life of the trademark to be indefinite.
4. On May 1, 2014, Toronto sold the patent in exchange for a P5,000,000
non-interest bearing note due on May 1, 2017. There was no established
exchange price for the patent, and the note had no ready market.  The
prevailing rate of interest for a note of this type at May 1, 2014 was 14%. 
The present value of 1 for three periods at 14% is 0.675.  The collection
of the note receivable is reasonably assured.
5. On July 1, 2014, Toronto paid P18,800,000 for 750,000 ordinary shares
of Canada Corporation, which represented a 25% investment in Canada.
The fair value of all of Canada’s identifiable assets net of liabilities equals
their carrying amount of P64,000,000.  The market price of Canada’s
ordinary share on December 31, 2014 was P26.00 per share.
6. Canada reported net income and paid dividends of

Six months ended Net income Dividends per share

6/30/14 P5,760,000 None

12/31/14 7,040,000 P2.00

Dividend was paid on November 30, 2014.

QUESTION:  Based on the above and the result of your audit, compute for total interest
income for 2014.
1075500

 
Among the account balances of Toronto Corporation at December 31, 2013 are the
following:
Patent, net P2,450,000

Installment contract receivable 7,200,000

Relevant transactions and other information for 2014 were as follows:

1. The patent was purchased for P3,150,000 on September 1, 2010. On

that date, the remaining legal life was fifteen years, which was also
determined to be the useful life.
2. The installment contract receivable represents the balance of the
consideration received from the sale of a factory building to Raptors
Company on March 31, 2012, for P12,000,000. Raptors made a
P3,000,000 down payment and signed a five-year 13% note for the
P9,000,000 balance.  The first of equal annual principal payments of
P1,800,000 was received on March 31, 2013 together with interest to that
date.  The note is collateralized by the factory building with a fair value of
P10,000,000 at December 31, 2014.  The 2014 payment was received on
time.
3. On January 2, 2014, Toronto purchased a trademark for P2,500,000.
Toronto considers the life of the trademark to be indefinite.
4. On May 1, 2014, Toronto sold the patent in exchange for a P5,000,000
non-interest bearing note due on May 1, 2017. There was no established
exchange price for the patent, and the note had no ready market.  The
prevailing rate of interest for a note of this type at May 1, 2014 was 14%. 
The present value of 1 for three periods at 14% is 0.675.  The collection
of the note receivable is reasonably assured.
5. On July 1, 2014, Toronto paid P18,800,000 for 750,000 ordinary shares
of Canada Corporation, which represented a 25% investment in Canada.
The fair value of all of Canada’s identifiable assets net of liabilities equals
their carrying amount of P64,000,000.  The market price of Canada’s
ordinary share on December 31, 2014 was P26.00 per share.
6. Canada reported net income and paid dividends of

Six months ended Net income Dividends per share

6/30/14 P5,760,000 None

12/31/14 7,040,000 P2.00

Dividend was paid on November 30, 2014.

QUESTION:  Based on the above and the result of your audit, compute for Noncurrent
portion of the installment contract receivable as of December 31, 2014.
3600000

 
Among the account balances of Toronto Corporation at December 31, 2013 are the
following:

Patent, net P2,450,000

Installment contract receivable 7,200,000

Relevant transactions and other information for 2014 were as follows:

1. The patent was purchased for P3,150,000 on September 1, 2010. On

that date, the remaining legal life was fifteen years, which was also
determined to be the useful life.
2. The installment contract receivable represents the balance of the
consideration received from the sale of a factory building to Raptors
Company on March 31, 2012, for P12,000,000. Raptors made a
P3,000,000 down payment and signed a five-year 13% note for the
P9,000,000 balance.  The first of equal annual principal payments of
P1,800,000 was received on March 31, 2013 together with interest to that
date.  The note is collateralized by the factory building with a fair value of
P10,000,000 at December 31, 2014.  The 2014 payment was received on
time.
3. On January 2, 2014, Toronto purchased a trademark for P2,500,000.
Toronto considers the life of the trademark to be indefinite.
4. On May 1, 2014, Toronto sold the patent in exchange for a P5,000,000
non-interest bearing note due on May 1, 2017. There was no established
exchange price for the patent, and the note had no ready market.  The
prevailing rate of interest for a note of this type at May 1, 2014 was 14%. 
The present value of 1 for three periods at 14% is 0.675.  The collection
of the note receivable is reasonably assured.
5. On July 1, 2014, Toronto paid P18,800,000 for 750,000 ordinary shares
of Canada Corporation, which represented a 25% investment in Canada.
The fair value of all of Canada’s identifiable assets net of liabilities equals
their carrying amount of P64,000,000.  The market price of Canada’s
ordinary share on December 31, 2014 was P26.00 per share.
6. Canada reported net income and paid dividends of

Six months ended Net income Dividends per share

 6/30/14 P5,760,000 None

12/31/14 7,040,000 P2.00

Dividend was paid on November 30, 2014.

QUESTION:  Based on the above and the result of your audit, compute for Carrying
amount of the note receivable from sale of patent as of December 31, 2014.
3690000

 
Among the account balances of Toronto Corporation at December 31, 2013 are the
following:

Patent, net P2,450,000

Installment contract receivable 7,200,000

Relevant transactions and other information for 2014 were as follows:

1. The patent was purchased for P3,150,000 on September 1, 2010. On

that date, the remaining legal life was fifteen years, which was also
determined to be the useful life.
2. The installment contract receivable represents the balance of the
consideration received from the sale of a factory building to Raptors
Company on March 31, 2012, for P12,000,000. Raptors made a
P3,000,000 down payment and signed a five-year 13% note for the
P9,000,000 balance.  The first of equal annual principal payments of
P1,800,000 was received on March 31, 2013 together with interest to that
date.  The note is collateralized by the factory building with a fair value of
P10,000,000 at December 31, 2014.  The 2014 payment was received on
time.
3. On January 2, 2014, Toronto purchased a trademark for P2,500,000.
Toronto considers the life of the trademark to be indefinite.
4. On May 1, 2014, Toronto sold the patent in exchange for a P5,000,000
non-interest bearing note due on May 1, 2017. There was no established
exchange price for the patent, and the note had no ready market.  The
prevailing rate of interest for a note of this type at May 1, 2014 was 14%. 
The present value of 1 for three periods at 14% is 0.675.  The collection
of the note receivable is reasonably assured.
5. On July 1, 2014, Toronto paid P18,800,000 for 750,000 ordinary shares
of Canada Corporation, which represented a 25% investment in Canada.
The fair value of all of Canada’s identifiable assets net of liabilities equals
 their carrying amount of P64,000,000.  The market price of Canada’s
ordinary share on December 31, 2014 was P26.00 per share.
6. Canada reported net income and paid dividends of

Six months ended Net income Dividends per share

6/30/14 P5,760,000 None

12/31/14 7,040,000 P2.00

Dividend was paid on November 30, 2014.

QUESTION:  Based on the above and the result of your audit, compute for The carrying
amount of the investment in Canada Corporation as of December 31, 2014.
.
19060000

 
ANYANG CORP.  Invested its excess cash in marketable equity securities during 2012.
The securities do not qualify as financial asset held for trading. Anyang Corp. has made
an irrevocable election to present in other comprehensive income subsequent changes
in fair value of its Investment securities. As of December 31, 2012, the company’s
securities portfolio consisted of the following.

Investee
Shares Cost Fair Value
Company

Kandong Inc. 30,000 P1,350,000 P1,275,000

Egoy Corp. 60,000 4,5000,000 4,830,000

Yoga Enterprises 60,000 6,480,000 6,900,000

Totals   P12,330,000 P13,005,000

 During the year 2013, Anyang Corp. sold 60,000 shares of Egoy Corp. for P4,800,000
and purchased 60,000 additional shares of Kandong, Inc. and 30,000 shares of Kongga
Company.
 On December 31, 2013, Anyang Copr.’s portfolio of securities comprised the following:
Investee
Shares Cost Fair Value
Company

Kandong, Inc. 30,000 P1,350,000 P1,500,000

Kandong, Inc. 60,000 3,900,000 4,350,000

Kongga
30,000 1,560,000 1,440,000
Company

Yoga Enterprise 60,000 6,480,000 2,100,000

Totals   P13,290,000 P9,390,000

During the year 2014, Anyang Corp sold all the Kandong, Inc. shares. Also 15,000
shares of Kongga Company were sold at a loss of P270,000. The net realized gain on
sale securities in 2014 amounted to P1,440,000. On December 31, 2014, Anyang
Corp.’s portfolio of securities consisted of the following:

Investee
Shares Cost Fair Value
Company

Yoga Enterprises 60,000 P6,480,000 P12,600,000

Kongga
15,000 780,000 540,000
Company

Totals   P7,260,000 P13,140,000

Question: What amount should be reported as unrealized gain in Anyang’s Statement of Changes

in Equity for 2014?
5880000

 
ANYANG CORP.  Invested its excess cash in marketable equity securities during 2012.
The securities do not qualify as financial asset held for trading. Anyang Corp. has made
an irrevocable election to present in other comprehensive income subsequent changes
in fair value of its Investment securities. As of December 31, 2012, the company’s
securities portfolio consisted of the following.
Investee
Shares Cost Fair Value
Company

Kandong Inc. 30,000 P1,350,000 P1,275,000

Egoy Corp. 60,000 4,5000,000 4,830,000

Yoga Enterprises 60,000 6,480,000 6,900,000

Totals   P12,330,000 P13,005,000

 During the year 2013, Anyang Corp. sold 60,000 shares of Egoy Corp. for P4,800,000
and purchased 60,000 additional shares of Kandong, Inc. and 30,000 shares of Kongga
Company.
 On December 31, 2013, Anyang Copr.’s portfolio of securities comprised the following:

Investee
Shares Cost Fair Value
Company

Kandong, Inc. 30,000 P1,350,000 P1,500,000

Kandong, Inc. 60,000 3,900,000 4,350,000

Kongga
30,000 1,560,000 1,440,000
Company

Yoga Enterprise 60,000 6,480,000 2,100,000

Totals   P13,290,000 P9,390,000

During the year 2014, Anyang Corp sold all the Kandong, Inc. shares. Also 15,000
shares of Kongga Company were sold at a loss of P270,000. The net realized gain on
sale securities in 2014 amounted to P1,440,000. On December 31, 2014, Anyang
Corp.’s portfolio of securities consisted of the following:

Investee
Shares Cost Fair Value
Company
 Yoga Enterprises 60,000 P6,480,000 P12,600,000

Kongga
15,000 780,000 540,000
Company

Totals   P7,260,000 P13,140,000

Question:  Anyang’s Statement of Financial Position should report investment in equity

securities of (your answer should be like this format: 000,000 in 12/31/14; 000,000 in
12/31/13; 000,000 in 12/31/12)
0 in 14 9390000 in 13 13140000 in 12
13005000 in 14 9390000 in 13 13140000 in 12
 
ANYANG CORP.  Invested its excess cash in marketable equity securities during 2012.
The securities do not qualify as financial asset held for trading. Anyang Corp. has made
an irrevocable election to present in other comprehensive income subsequent changes
in fair value of its Investment securities. As of December 31, 2012, the company’s
securities portfolio consisted of the following.

Investee
Shares Cost Fair Value
Company

Kandong Inc. 30,000 P1,350,000 P1,275,000

Egoy Corp. 60,000 4,5000,000 4,830,000

Yoga Enterprises 60,000 6,480,000 6,900,000

Totals   P12,330,000 P13,005,000

 During the year 2013, Anyang Corp. sold 60,000 shares of Egoy Corp. for P4,800,000
and purchased 60,000 additional shares of Kandong, Inc. and 30,000 shares of Kongga
Company.
 On December 31, 2013, Anyang Copr.’s portfolio of securities comprised the following:

Investee
Shares Cost Fair Value
Company

Kandong, Inc. 30,000 P1,350,000 P1,500,000

Kandong, Inc. 60,000 3,900,000 4,350,000

Kongga
30,000 1,560,000 1,440,000
Company

Yoga Enterprise 60,000 6,480,000 2,100,000

Totals   P13,290,000 P9,390,000

During the year 2014, Anyang Corp sold all the Kandong, Inc. shares. Also 15,000
shares of Kongga Company were sold at a loss of P270,000. The net realized gain on
sale securities in 2014 amounted to P1,440,000. On December 31, 2014, Anyang
Corp.’s portfolio of securities consisted of the following:

Investee
Shares Cost Fair Value
Company

Yoga Enterprises 60,000 P6,480,000 P12,600,000

Kongga
15,000 780,000 540,000
Company

Totals   P7,260,000 P13,140,000

Question:  How much was received by Anyang from the sale of its Investment in
Kandong securities in 2014?
7560000

 
ANYANG CORP.  Invested its excess cash in marketable equity securities during 2012.
The securities do not qualify as financial asset held for trading. Anyang Corp. has made
an irrevocable election to present in other comprehensive income subsequent changes
in fair value of its Investment securities. As of December 31, 2012, the company’s
securities portfolio consisted of the following.
Investee
Shares Cost Fair Value
Company

Kandong Inc. 30,000 P1,350,000 P1,275,000

Egoy Corp. 60,000 4,5000,000 4,830,000

Yoga Enterprises 60,000 6,480,000 6,900,000

Totals   P12,330,000 P13,005,000

 During the year 2013, Anyang Corp. sold 60,000 shares of Egoy Corp. for P4,800,000
and purchased 60,000 additional shares of Kandong, Inc. and 30,000 shares of Kongga
Company.
 On December 31, 2013, Anyang Copr.’s portfolio of securities comprised the following:

Investee
Shares Cost Fair Value
Company

Kandong, Inc. 30,000 P1,350,000 P1,500,000

Kandong, Inc. 60,000 3,900,000 4,350,000

Kongga
30,000 1,560,000 1,440,000
Company

Yoga Enterprise 60,000 6,480,000 2,100,000

Totals   P13,290,000 P9,390,000

During the year 2014, Anyang Corp sold all the Kandong, Inc. shares. Also 15,000
shares of Kongga Company were sold at a loss of P270,000. The net realized gain on
sale securities in 2014 amounted to P1,440,000. On December 31, 2014, Anyang
Corp.’s portfolio of securities consisted of the following:

Investee
Shares Cost Fair Value
Company
Yoga Enterprises 60,000 P6,480,000 P12,600,000

Kongga
15,000 780,000 540,000
Company

Totals   P7,260,000 P13,140,000

Question: What amount of unrealized loss should be reported in Anyang’s December 31, 2013
Statement of Changes in Equity? use parenthesis () to indicate loss.
(3900000)

 
ANYANG CORP.  Invested its excess cash in marketable equity securities during 2012.
The securities do not qualify as financial asset held for trading. Anyang Corp. has made
an irrevocable election to present in other comprehensive income subsequent changes
in fair value of its Investment securities. As of December 31, 2012, the company’s
securities portfolio consisted of the following.

Investee
Shares Cost Fair Value
Company

Kandong Inc. 30,000 P1,350,000 P1,275,000

Egoy Corp. 60,000 4,5000,000 4,830,000

Yoga Enterprises 60,000 6,480,000 6,900,000

Totals   P12,330,000 P13,005,000

 During the year 2013, Anyang Corp. sold 60,000 shares of Egoy Corp. for P4,800,000
and purchased 60,000 additional shares of Kandong, Inc. and 30,000 shares of Kongga
Company.
 On December 31, 2013, Anyang Copr.’s portfolio of securities comprised the following:

Investee
Shares Cost Fair Value
Company

Kandong, Inc. 30,000 P1,350,000 P1,500,000

Kandong, Inc. 60,000 3,900,000 4,350,000

Kongga
30,000 1,560,000 1,440,000
Company

Yoga Enterprise 60,000 6,480,000 2,100,000

Totals   P13,290,000 P9,390,000

During the year 2014, Anyang Corp sold all the Kandong, Inc. shares. Also 15,000
shares of Kongga Company were sold at a loss of P270,000. The net realized gain on
sale securities in 2014 amounted to P1,440,000. On December 31, 2014, Anyang
Corp.’s portfolio of securities consisted of the following:

Investee
Shares Cost Fair Value
Company

Yoga Enterprises 60,000 P6,480,000 P12,600,000

Kongga
15,000 780,000 540,000
Company

Totals   P7,260,000 P13,140,000

Question: For the year ended December 31, 2013, Anyang’s Statement of Comprehensive
Income should report unrealized loss of
4245000

 
Group of answer choices

No answer text provided.

No answer text provided.

No answer text provided.

No answer text provided.

 
DARWIN CORP., a manufacturer of computer parts, has been experiencing growth in
the demand of its products over the last several years. This prompted the company to
obtain additional manufacturing facility. A real estate firm located an available factory
and used machinery from Quezon Company in October 1, 2011. Renovations were
necessary to convert the factory for Darwin’s manufacturing use.
 The terms of the agreement required Darwin to pay Quezon P4,500,000 when
renovations started on January 1, 2012, with the balance to be paid as renovations
completed. The overall purchase price for the factory and machinery was P36,000,000.
The building renovations were contracted to Mallbornes Construction Company at
P9,000,000. The payments made, as renovation progressed during 2012, are shown
below. The factory was placed in service on January 1, 2013.

  Quezon Mallbornes

January 1 P 4,500,000 P 2,700,000

April 1 8,100,000 2, 700,000

October 1 9,900,000 2,700,000

December 31 13,500,000 3,600,000

  P 36,000,000 P 9,000,000

On January 1, 2012, Darwin obtained a 2-year, P9 million loan with a 12% interest rate
to finance the renovation of the acquired factory. This is Darwin’s only outstanding loan
during 2012.
Darwin’s policy regarding purchases of this nature is to use the appraisal value of the
land for book purposes and prorate the balance of the purchase price over the
remaining items. The building had originally cost Quezon P27,000,000 and had a net
book value of P4,500,000, while the machinery originally cost P11,250,000 and had a
net book value of P3,600,000 on the date of sale.The land was recorded on Quezon’s 
books at P3, 600,000.
The following values were determined based on appraisal conducted by independent
appraisers at the time of acquisition.
Land                      P26,100,000                       
Building                     9,450,000
Machinery                 4,050,000
Gino G. Nario, Darwin’s chief engineer estimated that the renovated plant would be
used for 15 years, with an estimated residual values of P2,700,000. Nario estimated
that the productive machinery would have a remaining useful life of 5 years and residual
value of P270,000. Darwin’s depreciation policy is to apply 200% declining balance
method for machinery and the 150% declining balance method for the plant. One-half
year’s depreciation is taken in the year the plant is placed in service and one-half year is
allowed when the property is disposed or retired.
Determine the amounts to be recorded on the books of Darwin Corp. as of December
31, 2012 for the Building.
17010000

 
DARWIN CORP., a manufacturer of computer parts, has been experiencing growth in
the demand of its products over the last several years. This prompted the company to
obtain additional manufacturing facility. A real estate firm located an available factory
and used machinery from Quezon Company in October 1, 2011. Renovations were
necessary to convert the factory for Darwin’s manufacturing use.
The terms of the agreement required Darwin to pay Quezon P4,500,000 when
renovations started on January 1, 2012, with the balance to be paid as renovations
completed. The overall purchase price for the factory and machinery was P36,000,000.
The building renovations were contracted to Mallbornes Construction Company at
P9,000,000. The payments made, as renovation progressed during 2012, are shown
below. The factory was placed in service on January 1, 2013.

  Quezon Mallbornes

January 1 P 4,500,000 P 2,700,000

April 1 8,100,000 2, 700,000

October 1 9,900,000 2,700,000

December 31 13,500,000 3,600,000

  P 36,000,000 P 9,000,000

On January 1, 2012, Darwin obtained a 2-year, P9 million loan with a 12% interest rate
to finance the renovation of the acquired factory. This is Darwin’s only outstanding loan
during 2012.
Darwin’s policy regarding purchases of this nature is to use the appraisal value of the
land for book purposes and prorate the balance of the purchase price over the
remaining items. The building had originally cost Quezon P27,000,000 and had a net
book value of P4,500,000, while the machinery originally cost P11,250,000 and had a
net book value of P3,600,000 on the date of sale.The land was recorded on Quezon’s 
books at P3, 600,000.
The following values were determined based on appraisal conducted by independent
appraisers at the time of acquisition.
Land                      P26,100,000                       
Building                     9,450,000
Machinery                 4,050,000
Gino G. Nario, Darwin’s chief engineer estimated that the renovated plant would be
used for 15 years, with an estimated residual values of P2,700,000. Nario estimated
that the productive machinery would have a remaining useful life of 5 years and residual
value of P270,000. Darwin’s depreciation policy is to apply 200% declining balance
method for machinery and the 150% declining balance method for the plant. One-half
year’s depreciation is taken in the year the plant is placed in service and one-half year is
allowed when the property is disposed or retired.
Determine the amounts to be recorded on the books of Darwin Corp. as of December
31, 2012 for the Machinery.
2970000

 
DARWIN CORP., a manufacturer of computer parts, has been experiencing growth in
the demand of its products over the last several years. This prompted the company to
obtain additional manufacturing facility. A real estate firm located an available factory
and used machinery from Quezon Company in October 1, 2011. Renovations were
necessary to convert the factory for Darwin’s manufacturing use.
The terms of the agreement required Darwin to pay Quezon P4,500,000 when
renovations started on January 1, 2012, with the balance to be paid as renovations
completed. The overall purchase price for the factory and machinery was P36,000,000.
The building renovations were contracted to Mallbornes Construction Company at
P9,000,000. The payments made, as renovation progressed during 2012, are shown
below. The factory was placed in service on January 1, 2013.

  Quezon Mallbornes

January 1 P 4,500,000 P 2,700,000

April 1 8,100,000 2, 700,000

October 1 9,900,000 2,700,000

December 31 13,500,000 3,600,000

  P 36,000,000 P 9,000,000

On January 1, 2012, Darwin obtained a 2-year, P9 million loan with a 12% interest rate
to finance the renovation of the acquired factory. This is Darwin’s only outstanding loan
during 2012.
Darwin’s policy regarding purchases of this nature is to use the appraisal value of the
land for book purposes and prorate the balance of the purchase price over the
remaining items. The building had originally cost Quezon P27,000,000 and had a net
book value of P4,500,000, while the machinery originally cost P11,250,000 and had a
net book value of P3,600,000 on the date of sale.The land was recorded on Quezon’s 
books at P3, 600,000.
The following values were determined based on appraisal conducted by independent
appraisers at the time of acquisition.
Land                      P26,100,000                       
Building                     9,450,000
Machinery                 4,050,000
Gino G. Nario, Darwin’s chief engineer estimated that the renovated plant would be
used for 15 years, with an estimated residual values of P2,700,000. Nario estimated
that the productive machinery would have a remaining useful life of 5 years and residual
value of P270,000. Darwin’s depreciation policy is to apply 200% declining balance
method for machinery and the 150% declining balance method for the plant. One-half
year’s depreciation is taken in the year the plant is placed in service and one-half year is
allowed when the property is disposed or retired.
Calculate the December 31, 2014 net book value of the Building.
14543550

 
DARWIN CORP., a manufacturer of computer parts, has been experiencing growth in
the demand of its products over the last several years. This prompted the company to
obtain additional manufacturing facility. A real estate firm located an available factory
and used machinery from Quezon Company in October 1, 2011. Renovations were
necessary to convert the factory for Darwin’s manufacturing use.
 The terms of the agreement required Darwin to pay Quezon P4,500,000 when
renovations started on January 1, 2012, with the balance to be paid as renovations
completed. The overall purchase price for the factory and machinery was P36,000,000.
The building renovations were contracted to Mallbornes Construction Company at
P9,000,000. The payments made, as renovation progressed during 2012, are shown
below. The factory was placed in service on January 1, 2013.

  Quezon Mallbornes

January 1 P 4,500,000 P 2,700,000

April 1 8,100,000 2, 700,000

October 1 9,900,000 2,700,000

December 31 13,500,000 3,600,000

  P 36,000,000 P 9,000,000

On January 1, 2012, Darwin obtained a 2-year, P9 million loan with a 12% interest rate
to finance the renovation of the acquired factory. This is Darwin’s only outstanding loan
during 2012.
Darwin’s policy regarding purchases of this nature is to use the appraisal value of the
land for book purposes and prorate the balance of the purchase price over the
remaining items. The building had originally cost Quezon P27,000,000 and had a net
book value of P4,500,000, while the machinery originally cost P11,250,000 and had a
net book value of P3,600,000 on the date of sale.The land was recorded on Quezon’s 
books at P3, 600,000.
The following values were determined based on appraisal conducted by independent
appraisers at the time of acquisition.
Land                      P26,100,000                       
Building                     9,450,000
Machinery                 4,050,000
Gino G. Nario, Darwin’s chief engineer estimated that the renovated plant would be
used for 15 years, with an estimated residual values of P2,700,000. Nario estimated
that the productive machinery would have a remaining useful life of 5 years and residual
value of P270,000. Darwin’s depreciation policy is to apply 200% declining balance
method for machinery and the 150% declining balance method for the plant. One-half
year’s depreciation is taken in the year the plant is placed in service and one-half year is
allowed when the property is disposed or retired.
Determine the amounts to be recorded on the books of Darwin Corp. as of December
31, 2012 for the Land.
 26100000

 
DARWIN CORP., a manufacturer of computer parts, has been experiencing growth in
the demand of its products over the last several years. This prompted the company to
obtain additional manufacturing facility. A real estate firm located an available factory
and used machinery from Quezon Company in October 1, 2011. Renovations were
necessary to convert the factory for Darwin’s manufacturing use.
The terms of the agreement required Darwin to pay Quezon P4,500,000 when
renovations started on January 1, 2012, with the balance to be paid as renovations
completed. The overall purchase price for the factory and machinery was P36,000,000.
The building renovations were contracted to Mallbornes Construction Company at
P9,000,000. The payments made, as renovation progressed during 2012, are shown
below. The factory was placed in service on January 1, 2013.

  Quezon Mallbornes

January 1 P 4,500,000 P 2,700,000

April 1 8,100,000 2, 700,000

October 1 9,900,000 2,700,000

December 31 13,500,000 3,600,000

  P 36,000,000 P 9,000,000

On January 1, 2012, Darwin obtained a 2-year, P9 million loan with a 12% interest rate
to finance the renovation of the acquired factory. This is Darwin’s only outstanding loan
during 2012.
Darwin’s policy regarding purchases of this nature is to use the appraisal value of the
land for book purposes and prorate the balance of the purchase price over the
remaining items. The building had originally cost Quezon P27,000,000 and had a net
book value of P4,500,000, while the machinery originally cost P11,250,000 and had a
net book value of P3,600,000 on the date of sale.The land was recorded on Quezon’s 
books at P3, 600,000.
The following values were determined based on appraisal conducted by independent
appraisers at the time of acquisition.
Land                      P26,100,000                       
Building                     9,450,000
Machinery                 4,050,000
Gino G. Nario, Darwin’s chief engineer estimated that the renovated plant would be
used for 15 years, with an estimated residual values of P2,700,000. Nario estimated
that the productive machinery would have a remaining useful life of 5 years and residual
value of P270,000. Darwin’s depreciation policy is to apply 200% declining balance
method for machinery and the 150% declining balance method for the plant. One-half
year’s depreciation is taken in the year the plant is placed in service and one-half year is
allowed when the property is disposed or retired.
Calculate the December 31, 2014 net book value of the Machinery.
1425600

On December 31, 2012, BANTAY COMPANY acquired a piece of equipment from

Sendong Company by issuing a P500,000 note payable in full on December 31, 2016.
Bantay’s credit rating permits it to borrow funds from its several lines of credit at 10%.
The equipment is expected to have a 5-year life and a P75,000 salvage value.
What is the equipment’s carrying value on December 31, 2015?
208922

 
On December 31, 2012, BANTAY COMPANY acquired a piece of equipment from
Sendong Company by issuing a P500,000 note payable in full on December 31, 2016.
Bantay’s credit rating permits it to borrow funds from its several lines of credit at 10%.
The equipment is expected to have a 5-year life and a P75,000 salvage value.
 What is the note payable’s carrying value on December 31, 2015?
545453

 
ONDONG COMPANY purchased machinery on December 31, 2012, paying P120,000
down and agreeing to pay the balance in four equal installments of P90,000 payable
each year December 31. Implicit in the purchase price is an assumed interest of 12%
 What is the cost of the machinery purchased on December 31, 2012?
 
393362

 
ONDONG COMPANY purchased machinery on December 31, 2012, paying P120,000
down and agreeing to pay the balance in four equal installments of P90,000 payable
each year December 31. Implicit in the purchase price is an assumed interest of 12%
 How much interest expense should be reported in Ondong’s Income Statement for the
year ended December 31, 2014?
 25940

 
ONDONG COMPANY purchased machinery on December 31, 2012, paying P120,000
down and agreeing to pay the balance in four equal installments of P90,000 payable
each year December 31. Implicit in the purchase price is an assumed interest of 12%
 What is the carrying value of the note at December 31, 2015?
80358

The following account appears on the books of ELOHIM Company.  Determine the
correct amounts below, assuming that the debt investment was held to collect and to sell
securities, the term is ten years.                                   

 Unit
Date Transactions  Debit   Credit 
Cost 

Purchased 10 bonds at 95 plus interest of           

08/01/2021          9,900
P400 950

 10/01/202
Received P600 interest             600
1
Sold 5 bonds, sales price plus interest,
less commission.  The Management
11/01/2021         4,400
irrevocably designated the asset at
amortized cost.
12/31/2021 Quoted price of the bond is 90.  

Compute the unrealized holding loss to be presented in the Shareholders' Equity

Section on 12/31/21.
255

 
The following account appears on the books of ELOHIM Company.  Determine the
correct amounts below, assuming that the debt investment was initially held to collect
and to sell securities, the term is ten years.                                   
 Unit
Date Transactions  Debit   Credit 
Cost 
Purchased 10 bonds at 95 plus interest of           
08/01/2021          9,900
P400 950
 10/01/202 Received P600 interest             600
1
Sold 5 bonds, sales price plus interest,
less commission.  The Management
11/01/2021         4,400
irrevocably designated the remaining
asset at amortized cost.
12/31/2021 Quoted price of the bond is 90. 

Compute the Carrying Value of the Financial Asset on 12/31/21.

4755

The following account appears on the books of ELOHIM Company.  Determine the
correct amounts below, assuming that the debt investment was initially held to collect
and to sell securities, the term is ten years.                                   

 Unit
Date Transactions  Debit   Credit 
Cost 

Purchased 10 bonds at 95 plus interest of           

08/01/2021          9,900
P400 950

 10/01/202
Received P600 interest             600
1
Sold 5 bonds, sales price plus interest,
less commission.  The Management
11/01/2021         4,400
irrevocably designated the remaining
asset at amortized cost

12/31/2021 Quoted price of the bond is 90. 

How much interest income would be accrued including amortization at 12/3121.

153