CATHERINE

1pt 1 - T or F 1
Trading bond investments are reported at amortized cost.

2pts 2 - fill in the blanks 196,000

On October 1, Good Co. purchased P200,000 face value 12% bonds for 98 plus accrued interest and brokerage fees and classified them as amortized cost
assets. Interest is paid semi-annually on January 1 and July 1. Brokerage fees for this transaction were P700.

At what amount should the acquisition of bonds be recorded?

1pt 3 - T or F 0
Goodwill arising from investment in associate is included in the carrying amount of the investment and amortized over the useful life.

1pt 4 - T or F 1
Property for sale in the ordinary course of business is an example of investment property

1pt 5 - T or F 1
Bonus question 2 to compensate for SA1 points: Choose True if you want to receive the point

1pt 6 P102,000
Entity A acquires inventories and incurs the following costs:
Purchase price, gross of trade discount 100,000
Trade discount 20,000
Non-refundable purchase tax, not included in the purchase price above 5,000
Freight-in (Transportation costs) 15,000
Commission to broker 2,000
Advertisement costs 10,000

How much is the cost of the inventories purchased?

P122,000
P102,000
Answer Not Given
P100,000
P97,000

1pt 7 - T or F 1
All PPE are subject to depreciation and impairment losses

1pt 8 - T or F 1
Installing a higher capacity boiler to heat a plant is an example of a betterment

1pt 9 87,800
Information on ABC Co. is shown below:
. 30-Jul Aug 31
Book balance 132,200 180,000
Book debits 60,000
 Book credits ?
Bank balance 100,600 169.000
Bank debits 20,600
Bank credits ?
Notes collected by bank 10,000 35,000
Debit memos 7,800 8,900
Understatement of book receipts -2,800
Deposit in transit 45,000 43.800
Outstanding checks 11,200 3,900

How much is the adjusted receipts in August?

80,700
Answer not given
88,700
87,800
78,800

1pt 10 196,000
On October 1, ABC Company purchased P200,000 face value 12% bonds for 98 plus accrued interest and brokerage fees and classified them as amortized
cost assets. Interest paid semiannually on January 1 and July 1. Brokerage fees for this transaction were P700. At what amount should this acquisition of
bonds be recorded?

P202,700
P196,700
P202,000
Answer not given

1pt If an entity owns and manages a hotel and the related services, 11 - T or F 1
the hotel building is classified as an owner-occupied property.

1
0

1pt 12 - T or F 0
The cost model used for investment property follows the same inclusions to cost as that of PPE.

1pt 13 - T or F 0
The actual interest earned by the bondholder is computed using the effective rate.

1pt 14 - T or F 1
Unrealized gains and losses from trading bond investments are reported as part of net income.

1pt 15 - T or F 1
When an asset’s service potential declines with us, the production method of depreciation is the best method to use.

1pt 16 - T or F 0
The effective rate on bond is lower than the stated rate when bond sell at maturity value.
1pt 17 - T or F 0
An entity over which the investor has significant influence is called a subsidiary.

1pt 18 25,600
Dirt Corporation schedule of depreciable assets at December 31, 20X7 was as follows:
Assets Cost Acc.Depreciation Acquisition date Residual value
A 100,000 64,000 20X6 20,000
B 55,000 36,000 20X5 10,000
C 70,000 33,600 20X5 14,000

Dirt takes a full year’s depreciation expense in the year of an asset’s acquisition, and no depreciation expense in the year of asset’s disposition. The estimated
useful life of each depreciable asset is 5 years

Dirt depreciates asset A on the double-declining-balance method. How much depreciation expense should Dirt record in 20X8 for asset A?
P 32,000
P 25,600
P 14,400
P 6,400
Answer not given

1pt 19 - T or F 1
Entities with less than 20% ownership will never be able to have significant influence.

1pt 20 - T or F 0
The sum of the years’ digit method excludes the residual value from the base for depreciation calculation in the earlier years.

1pt 21 330,000
Entity A is preparing its March 31, 20x1 bank reconciliation. The following information was determined:

The cash balance per book is P280,000 while the cash balance per bank statement is P320,000.
Credit memo - P20,000
Debit memo - P15,000
Deposit in transit - P75,000
Outstanding checks - P25,000
The disbursements per book are overstated by P45,000
The bank debits are understated by P40,000

How much is the adjusted balance of cash?

P 330,000
P 370,000
Answer not given
P 380,000
P 285,000

1pt 22 - T or F 1
A change in use for Land and Building from being rented out to being used is an example of a transfer from investment property to PPE.
1pt 23 - T or F 1
In the equity method, the investment is initially recognized at cost

1pt 24 - T or F 1
Straight line method of depreciation is based on the premise that the service value of an asset declines as a function of time rather than use.

1pt 25 - T or F 1
Only debts investments can be reclassified

1pt 26 21,200 unrealized loss

Supporting records of ABC CORP's trading securities portfolio show the following debt and equity securities
. Security Cost Fair Value
400 ordinary shares Con Co. P254.500 P243,000
P800,000 Tip Co. 7% bonds 796,500 774,000
P12000,000 Turk Co. 7 1/2% bonds 1,207,500 1,218,900
. Totals P2,258,500 P2,235,900

Interest rates on the bonds are January 1 and July 1, ABC Corp uses the income approach to record the purchase of conds with accrued interest. During 2017
and 2018. ABC completed the following transactions related to trading securities

2017
Jan 1 Received semiannual interest on bonds. Assume that the appropriate adjusting entry was made on December 31, 2016
April 1 Sold P600,000 of 7 1/2% Turk bonds st 102 plus accrued interest
May 21 Received divedend of P1.25 per share on the Con ordinary share capital. The dividend had not been recorded on the declaration date
Jul 1 Received semiannual interest on bonds and then sold the 7% Tip bonds at 97 1/2
Aug 25 Purchased 200 shares of New, Inc. ordinary share capital at P580 per phare plus brokerage fees of P500
Nov 1 Purchased P500,000 of 8% Tol Co. bonds at 101 plus accrued interest. Brokerage fees were P1,250 Interest dates are January 1 and July 1
Dec 31 Market price of securities were:
Con ordinary sheres P550
7 1/2 Turk bonds 101 3/4
8% Tol bonds 101
New ordinary shares P583.75

2018
Jan 2 Recorded the receipt of semiannual interest on bonds
Feb 1 Sold the remaining 7 1/2% Turk bonds at 101 plus accrued interest

What amount of unrealized gain or loss should be reported in the income statement for the year ended December 31,2017?
P6,150 unrealized gain
P21,200 unrealized gain
P21,200 unrealized loss
Answer not given
P6,150 unrealized loss

1pt 27 - T or F 1
The double declining balance is a depreciation method that is not based on passage of time.

1pt 28 12,000
On January 1, 20x1 Buckle Co. purchased a machine that had a list price of P46,320. Buckle Co. paid cash of P18,00 and executed a one-year non-interest-
bearing note for the balance. The going rate of interest was 18%. The machine has a 6-year life and no residual value. Depreciation expense on the SYD
basis at the end of 20x1 is
 P 12,000
P 13,234
P 8,092
14,690
Answer not given

1pt 29 - T or F 0
Investment property is subsequently measured at either cost or revaluation model.

1pt 30 - T or F 1
Bonus Question 3 to compensate for SA1 points: Choose True if you want to receive the point

6pts 31 1- 7,700,000
Peacock Co. incurred the following costs during the current year in relation to PPE. 2- 11,520,000
3- 5,200,000
Allowances and hotel room accommodation, paid to foreign technicians during installation and teat run of machine 800,000
Amount paid to relocate person squatting on the property 200,000
Amount paid to the contractor for the building constructed 10,000,000
Architect fee 400,000
Building permit fee 100,000
Cash paid for purchase of land 5,000,000
Coat of fencing the property after completion 220,000
Cost of tearing down an old building on the land for the construction of the new building 400,000
Custom duties and Other charges 280,000
Excavation 100,000
Freight, unloading and delivery charges for machine 120,000
Interest that would have been earned had the money used during the period of construction been invested 300,000
Invoice coat of machine acquired 4,000,000
Legal fees, realty taxes and documentation expenses 100,000
Mortgage assumed on the land purchased, incuding accrued interest 2,000,000
Realtor commission 600,000
Salvage value of old building demolished 100,000

1) What amount should be capitalized as cost of land?

2) What amount should be capitalized as cost of building?
3) What amount should be capitalized as cost of machine?

1 PT 32 55,500
Information on Mix Co.’s equipment on june 30,20x8 is shown below.
Equipment (at cost) P500,000
Accumulated depreciation 150,000 P350,000

The equipment consists of two machines, Machine A and Machine B, Machine A has a cost of P300,000 and a carrying amount of P180,000. Machine B has a
cost of P200,000 and a carrying amount of P170,000. Both machines are measured using the cost model and depreciated on a straight line basis over a ten-
year period.

On december 31, 20x8, Mix Co. decided to change from the cost model to the revaluation model. Information on the data follows:
Fair values Remaining useful life
Machine A P180,000 6 years
Machine B P155,000 5 years
 On June 30, 20x9, Machine A and Machine B have fair values of P163,000 and P136,500 respectively. And remaining useful lives of 5 years and 4 years.
Respectively, the tax rate is 30%

How much is the depreciation expense for the fiscal year ended June 30, 20x9?
P 55,500
Answer not given
P 50,000
P 67,000
P 59,900

1 PT 33 0
Bonds usually sell at a premium when market rate is greater than stated rate.

1
0

1 PT 34 1
When the entity holds a 20% interest in another entity, they are automatically considered with significant influence.

1
0

6 PTS 35 1 - 2,250,000

On January 1, 2020, Favorite Company acquired a 10% interest in an investee for P4,500,000. The investment was accounted for using the cost method. 2 - 1,875,000
On January 1, 2023, the entity acquired a further 25% interest on the investee for P10,125,000. On such date, the carrying amount of the net assets was
P54,000,000 and the fair value of the 10% interest was P6,750,000 3 - 17,700,000
The fair value of the net assets of the investee is equal to the carrying amount except for am equipment whose fair value exceeds carrying amount by
P6,000,000. The equipment has a remaining life of 5 years.
The investee reported net income of P12,000,000 for 2021 and paid dividend of P7,500,000 on 12 31, 2021.

What is the gain on remeasurement to equity to be recognized for 2021?

What is the goodwill arising from the acquisition on January 1, 2021?
What is the carrying amount of the investment in associate on december 31, 2021?

1 PT 36 6000
What amount should be reported as gain on sale of trading securities in 2017?
P8550
P6,000
P2,550
Answer not given
P3,450

1 PT 37 2000
During 2017, ABC Company purchased marketable equity securities as investment. These securities are classified as FVOIC. Thecost and market value at
December 31, 2017, were as follows:

Security Cost Fair Value

A- 100 shares 2,800 3,400
 B- 1,000 shares 17,000 15,300
C- 2,000 shares 31,500 29,500

ABC sold 1,000 shares of Company B stock on January 31, 2018 for P15 per share, incurring P1,500 brokerage commission and taxes. On the sale,
Rex should report a realized loss of
P1,800
P3,500
P300
Answer not given
P2,000

1 PT 38 91,417
Supporting records of ABC CORP’s trading securities portfolio show the following debt and equity securities.

Security cost. Fair value

400 ordinary shares Con Co. P254,500 P243,000
P800,000 Tip Co. 7% bonds 796,500 774,000
P1,200,000 Turk Co. 7 ¹/₂ % bonds 1,207,500 1,218,900
Totals P2,258,500 P2,235,900

Interest dates on the bonds are January 1 and July 1. ABC Corp uses the income approach to record the purchase of bonds with accrued interest. During 2017
and 2018, ABC completed the following transactions related to trading securities:

2017
Jan 1 Received semiannual interest on bonds. Assume that the appropriate adjusting entry was made on December 31, 2016
April 1 sold P600,000 of 7 ¹/₂ % Turks bonds at 102 plus accrued interest.
May 21 Received dividend of P1.25 per share on the Con ordinary share capital. The dividend had not been recorded on the declaration date.
Jul 1 Received semiannual interest on bonds and then sold the 7% Tip bonds at 97 ¹/₂
Aug 25 Purchased 200 shares of New. inc ordinary share capital at P580 per share plus brokerage fees of P500.
Nov 1 Purchased P500,000 of 8% Tol Co. bonds at 101 plus accrued interest. Brokerage fees were P1,250. Interest dates are January 1 and July 1
Dec 31 Market price of securities were:
Con ordinary shares P500
7¹/₂ Turk bonds 101 ³/₄
8% Tol bonds 101
New ordinary shares P583.75
2018
Jan 2 recorded the receipt of semiannual interest on bonds
Feb 1 Sol d the remaining 7¹/₂% Turk bonds at 101 plus accrued interest.

What is the total interest and dividend income for 2017?

Answer not given

P 164,416
P 98,804
P 125,166
P 91,417

1 PT 39 1
Titling cost related to the investment property are capitalized as part of its cost.

1
 0

10 PTS 40 1 - 298,350,000
On January 1, 2021 Peewee Co. acquired property consisting of 10 identical houses with separate legal title including the land on which it is built for
P300,000,000. 20% of which is attributable to the land. The units have a useful life of 50 years. 2 - 6,630,000
The following costs are also incurred on such date. 3 - 26,520,000
*Nonrefundable transfer taxes not included in the purchase price 30,000,000 4 - 39,150,000
*Legal cost directly attributable to the acquisition 1,500,000 4 - 530400
*Reimbursement to the previous owner for prepaid non-refundable taxes from January to June 2021, 150,000
*Advertising Campaign 700,000
*Opening celebration for the newly opened rental business 250,000

The entity used one of the units for their own admin and maintenance staff. All other units are leased on an operating lease contract.
On december 31, 2021, the fair value of each housing unit was reliably estimated at P37,500,000. The company uses the fair value model to subsequently
measure investment property.

What is the initial measurement of the investment property?

What is the initial measurement of the land to accounted for as PPE?
What is the initial measurement of the building accounted for as PPE?
What is the gain from the increase in fair value of the investment property for the current year?
What is the depreciation of the building for the current year?

1 PT 41 1,750
A company buys ten shares of securities at P1,000 each on January 15, 2017. The securities are classified as fair value through other comprehensive income.
The fair value of the securities increases to P1,250 per share as of December 31, 2017. Assume no dividends are paid and that the company has a 30% tax
rate. What is the amount of the holding gain arising during the period that is recognized in other comprehensive income for the period ending december 31,
2017?

P0
P 2,500
Answer not given
P 7,500
P 1,750

1 PT 42 1
Bonus Question 1 to compensate for SA1 points. Choose True if you want to receive the point.

1
0

1 PT 43 6,800
On October 1, 20x1, the warehouse of ABC Co, and all inventories contained therein were damaged by flood. Off-site backup of database shows the following
information:

Inventory Jan. 1 14,500

Accounts payable, Jan 1 6,000
Accounts payable Sept. 30 3,000
Payments to suppliers 50,000
Freight-in 5,000
Purchase returns and discount 2,500
Sales from Jan to Sept. 75,000
 Sales returns 5,000
Sales discounts 2,000
Gross profit rate based on sales 20%

Additional information:
Goods in transit as of October 1, 20x1 amounted to P 2,000, cost of goods out on consignment is P 1,200 and materials damaged by flood can be sold at a
salvage value of P500.

How much is the inventory loss due to the flood?

P 7,800
P 6,800
Answer not given
P 8,200
P 7,200

1 PT 44 - T or F 1
The reason for reclassification of debt investments is cause by a change in the business model for their investment,

1 PT 45 - T or F 1
Goodwill arising from an investment in associate in included in the carrying amount of the investment and is not amortized.

1 PT 46 - T or F 0
A property held for future development and subsequent use by the company is considered an investment property.

1 PT 47 900,000
Entity A acquires equipment on January 1, 20x1. Information on costs is as follows:
Purchase price, gross of P10,000 trade discount 800,000
Non-refundable purchase taxes 20,000
Delivery and handling costs 40,000
Installation cost 30,000
Present value of decommissioning and restoration costs 10,000

How much is the initial cost of the equipment?

P 820,000
Answer not given
P 890,000
P 900,000
P 870,000

1 PT 48 - T or F 1
When fair value model is used for investment property measurement, charges in fair value are included in the profit and loss statement.

1 PT 49 - T or F 1
Start-up costs are considered direct cost for investment property and must be added to the cost of the property.

1 PT 50 - T or F 0
Bonds usually sell at a discount when investors are willing to invest in bonds at rate lower than the stated interest rate.

1 PT 51 - T or F 0
 In an exchange with commercial substance gain or loss is not recognized

1 PT 52 60,000

Light Company bought a machine for P300,000 on January 1, 20x8.

The machine’s useful life is 10 years and it is estimated to have a zero residual
value and is depreciated using the straight-line method.

The revalued amount of the machine is as follows:

December 31 fair values of the machine
20x8 P 360,000
20x9 335,000
2x10 320,000

The enacted tax rate was 30% for each year

The revaluation surplus in the equity section of Light Company’s
december 31 20x8 of financial position is
P 63,000
P 39,000
P 60,000
P 90,000
Answer not given

4 PTS 53 1- 55,000
2 - 20,000
The following data pertains to Time Co.’s investments in marketable equity securities.
Cost FV 12 31 x3 FV 12 31 x2
FVPL P 150,000 155,000 100,000
FVOCI P 150,000 130,000 120,000

What amount should Time Co. report as unrealized holding gain

in its 20x3 income statement?
What amount should Time report as net unrealized loss on marketable
securities at 12 31 20x3, in accumulated other comprehensive income
in the stockholders’ equity?

1 PT 54 1

All equity investments cannot be reclassified.

1
0

1 PT 55 20,474
The following information was available from the inventory records of Mon
Company for January
Units Unit Cost Total Cost
Balance at January 1 3,000 P9.77 P29,310
Purchases
 January 6 2,000 10.30 20,600
January 26 2,700 10.71 28,917

Sales:
January 7 (2,500)
January 31 (3,200)
Balance at January 31 2,000

Assuming that Mon maintains perpetual inventory records,

what should be the inventory at January 31, using the moving-average
inventory method rounded to the nearest peso?

P 20,720
P 21,010
P 20,520
P 20,474
Answer not given

1 PT 56 0
The contractually agreed sharing of control over an economic
entity is the best description for significant influence.

1
0

1 PT 57 1

If an associate has outstanding cumulative preference shares held by outside

interests, the investor computes share of profit or loss after adjusting for the
preference dividends, whether or not the dividends were declared.

1
0

1 PT 58 1
Bonds usually sell at a discount when investors expect to receive
interest higher than the stated interest rate.

1
0

1 PT 59 0

Dividends received from the investee are accounted for as dividend income.

1
0

1 PT 60 0

PPE are subsequently measured at fair value or revaluation model

 1
0

2 PTS 61 8,600,000

Fill in the blanks:

Wiley Co.is installing a new equipment at the production

facility and incurred the following costs:
Cost of equipment per supplier’s invoice 5,000,000
Initial delivery and handling cost 400,000
Cost of site preparation 1,200,000
Consultants’ used for advice on the equipment acquisition 1,400,000
Interest charges paid to the supplier for deferred credits 400,000
Estimated dismantling cost to be incurred as required by the contract 600,000
Operating loss before commercial production 800,000

What is the total amount to be capitalized as the cost of the equipment? _________

1 PT 62 1
Cost of site preparation is an example of a direct cost chargeable to
the initial cost of PPE.

1
0

1 PT 63 350,000

Perlas Co. maintains a checking account at the Union Bank. The bank provides a
bank statement along with the canceled checks on the last day of each month.
The July bank statement included the following information:

Balance, July 1 275,000 Deposits 900.000

Checks processed 700,00 Service Charge 15,000
NSF Check 60,000 Monthly automatic loan payment deduction by bank 50,000
Deposits outstanding totaled P 50,000 and all checks written by the depositor
were processed by the bank except for check of P75,000
A P100,000 July deposit from a credit customer was recorded as P10,000
debit Cash and credit Accounts receivable.
A check correctly recorded by the entity asn P15,000 disbursements was
incorrectly processed by the bank as P150,000 disbursement.

What is the balance per bank on July 31?

400,000
275,000
350,000
Answer not given
475,000
1 PT 64 1,452,250
Supporting records of ABC CORP’s trading securities portfolio show
the following debt and equity securities.

Security cost. Fair value

400 ordinary shares Con Co. P254,500 P243,000
P800,000 Tip Co. 7% bonds 796,500 774,000
P1,200,000 Turk Co. 7 ¹/₂ % bonds 1,207,500 1,218,900
Totals P2,258,500 P2,235,900

Interest dates on the bonds are January 1 and July 1. ABC Corp uses
the income approach to record the purchase of bonds with accrued interest.
During 2017 and 2018, ABC completed the following transactions related to
trading securities:

2017
Jan 1 Received semiannual interest on bonds. Assume that the appropriate
adjusting entry was made on December 31, 2016
April
May 211 sold P600,000
Received of 7 ¹/₂
dividend % Turks
of P1.25 perbonds
shareaton102
theplus
Conaccrued
ordinaryinterest.
share capital.
The dividend had not been recorded on the declaration date.
Jul
Aug125Received semiannual
Purchased 200 shares interest on bonds
of New. and then
inc ordinary sold
share the 7%
capital at Tip
P580bonds
per at 97 ¹/₂
share1 plus
Nov brokerage
Purchased fees ofofP500.
P500,000 8% Tol Co. bonds at 101 plus accrued interest.
Brokerage fees were P1,250. Interest dates are January 1 and July 1
Dec 31 Market price of securities were:
Con ordinary shares P500
7¹/₂ Turk bonds 101 ³/₄
8% Tol bonds 101
New ordinary shares P583.75

2018
Jan 2 recorded the receipt of semiannual interest on bonds
Feb 1 Sol d the remaining 7¹/₂% Turk bonds at 101 plus accrued interest.

What is the carrying amount of the remaining trading insecurities on

December 31, 2017

P1,452,250
P1,481,000
P1,473,450
Answer not given
P1,450,450

8 PTS 65 1 - 171,240
2 - 65,699
On January 1, 2021, Yorme Co. purchased bonds with face amount of P2,000,000
for 2,103,000. The business model of the entity in managing the financial asset
to collect the contractual cash flows that are SPPI and also sell the bonds in the
open market.
The bonds The entity
mature has notand
on 12.31.23 elected the fair value
pay interest at 10%option of measuring
annually financial asset.
on December 3 - 236,939
31 of each year with an 8% effective yield. 4 - 1,800,000
The bonds are quoted at 95 on 12.31.2021 and 90 on 12.31.2022
What amount of unrealized loss should be reported as component of other
comprehensive income in 2021? _________
 What amount of of unrealized loss should be reported as component of other
comprehensive
What amount ofincome in 2022?
cumulative unrealized loss should be reported in the statement of
changes
What in carrying
is the equity inamount
December 31,bond
of the 2022?
investment to be reported on
December 31,2022?

1 PT 66 0

The composite depreciation method is applied to a group of homogeneous assets.

1
0

1 PT 67 1

Trading bond investments are reported at fair value.

1
0

1 PT 68 Answer not given

Supporting records of ABC CORP’s trading securities portfolio show the
following debt and equity securities.

Security cost. Fair value

400 ordinary shares Con Co. P254,500 P243,000
P800,000 Tip Co. 7% bonds 796,500 774,000
P1,200,000 Turk Co. 7 ¹/₂ % bonds 1,207,500 1,218,900
Totals P2,258,500 P2,235,900

Interest dates on the bonds are January 1 and July 1. ABC Corp uses the income
approach to record the purchase of bonds with accrued interest. During 2017 and
2018, ABC completed the following transactions related to trading securities:

20171 Received semiannual interest on bonds. Assume that the appropriate

Jan
adjusting entry was made on December 31, 2016
April 21
May 1 sold P600,000
Received of 7 ¹/₂
dividend % Turks
of P1.25 perbonds
shareaton102
theplus
Conaccrued
ordinaryinterest.
share capital.
The dividend had not been recorded on the declaration date.
Jul 125
Aug Received semiannual
Purchased 200 shares interest on bonds
of New. and then
inc ordinary sold
share the 7%
capital at Tip
P580bonds
per at 97 ¹/₂
share
Nov 1 plus brokerage
Purchased fees ofofP500.
P500,000 8% Tol Co. bonds at 101 plus accrued interest.
Brokerage fees were P1,250. Interest dates are January 1 and July 1
Dec 31 Market price of securities were:
Con ordinary shares P500
7¹/₂ Turk bonds 101 ³/₄
8% Tol bonds 101
New ordinary shares P583.75

2018
Jan 2 recorded the receipt of semiannual interest on bonds
Feb 1 Sol d the remaining 7¹/₂% Turk bonds at 101 plus accrued interest.

What is the loss on the sale of the remaining Turk bonds on February 1, 2018?
 P 13,500
P 10,500
P 750
P 4,500
Answer not given

2 PTS 69 125,000
Cheesy Co. made the following expenditures related to the plant
building during the year.
Continuing repairs 200,000
Repainting of building 50,000
Major improvements for the electrical wiring systems 150,000
Practical replacement of roof tiles 75,000
What is the total amount of repairs and maintenance should be recognized
as expense for the current year?

1 PT 70 -200,000
Entity A sells a machine that is classified as PPE for P1,700,000.
Entity A pays the broker a 10% commission. Information on the machine is as follows:
Carrying amount P1,900,000
Revaluation surplus 400,000

How much is the gain (loss) from the sale?

(P 30,000)
P 30,000
(P 370,000)
Answer not given
(P 200,000)

1 PT 71 0

The cost of land includes cost of parking lot and private driveways.

1
0