2022 EDITION

MC1 B MC27 D
MC2 B MC28 C
MC3 C MC29 D
MC4 C MC30 D
MC5 C MC31 C
MC6 A MC32 D
MC7 C MC33 C
MC8 B MC34 D
MC9 C MC35 C
MC10 B MC36 C
MC11 B MC37 B
MC12 A MC38 A
MC13 D MC39 B
MC14 B MC40 D
MC15 C MC41 C
MC42 A
MC43 C
MC44 B
MC45 B
MC46 A

MC27 D
Appraised Value Allocation
Building 5,000,000.00 0.25 3,600,000.00
Land 13,500,000.00 0.68 9,720,000.00
Land Improvements 1,500,000.00 0.08 1,080,000.00
20,000,000.00
MC28 C
market price 200,000.00
freight-in 3,000.00
installation 6,000.00
209,000.00

MC29 D
Cost of equipment
1,000 shares x 34 34,000.00
The excess is taken to P&L

MC30 D
SYD 78.00
Cost 800,000.00
salvage value 20,000.00
depreciable amount 780,000.00
 Depreciation Accu. Dep. Carrying value
780,000 x 12/78 x 9/12 90,000.00 90,000.00 710,000.00

MC31 C Depreciation Accu. Dep. Carrying value

780,000 x 11.25/12 112,500.00 202,500.00 597,500.00

MC32 D
Land Building
Cost of land 4,500,000.00
Expenses of land survey 30,000.00
Expenses for search of land title 6,000.00
Building permit fee 10,000.00
Temporary building 50,000.00
Demolition of old building 40,000.00
Payments to tenants 60,000.00
Interest on temporary loan for construction 90,000.00
Cost of paving parking area 45,000.00
Excavation expenses for foundation 150,000.00
Cost of construction 9,800,000.00
4,536,000.00 10,245,000.00

MC33 C
Average Accumulated Expenditure 2,500,000.00
Specific borrowing 1,800,000.00
Financed by general borrowing 700,000.00 0.09

Specific borrowing 180,000.00

Less: Interest earned (45,000.00)
Specific borrowing interest 135,000.00

General borrowing 63,000.00

Total Capitalized interest 198,000.00

MC34 D
Average Accumulated Expenditure 4,750,000.00
Specific borrowing 4,000,000.00
Financed by general borrowing 750,000.00 0.12

Specific borrowing interest 400,000.00

General borrowing interest 90,000.00
Total capitalized interest 490,000.00

MC35 C
Average expenditures 3,000,000.00
Less: Specific borrowings 2,000,000.00
 1,000,000.00

Specific borrowing interest 200,000.00

5,000,000.00 0.12 600,000.00

2,000,000.00 0.085 170,000.00
770,000.00 0.11

General borrowings interest 110,000.00

Total capitalized interest 310,000.00

MC36 C
FV of Bancnet's equipment 20,000.00
Cash received from Megalink (3,000.00)
17,000.00

Fair Value 20,000.00

Carrying value of Bancnet's equipment (10,000.00)
10,000.00

MC37 B
Fair Value of asset given up 14,500.00
Carrying Value (16,800.00)
(2,300.00)

MC38 A
Factory Building Machinery & Equipment Small Tools Patterns
Total Cost 4,800,000.00 1,400,000.00 82,000.00 53,000.00
Residual value 300,000.00 80,000.00 5,000.00
Depreciable cost 4,500,000.00 1,320,000.00 77,000.00 53,000.00
Est. Useful life 40 20 8 4
Annual Depr. 112,500.00 66,000.00 9,625.00 13,250.00

Depreciable Amount 5,950,000.00

Total annual depreciation 201,375.00
Composite life of the assets 29.55

MC39 B
Total Annual depreciation 201,375.00
Total Cost of the Assets 5,950,000.00
3.38%

MC40 D
 Factory Building
Total Cost 4,800,000.00
Residual value 300,000.00
Depreciable cost 4,500,000.00
Est. Useful life 40
Annual Depr. 112,500.00

MC41 C
SYD 36.00
Total Cost 82,000.00
Residual value 5,000.00
Depreciable cost 77,000.00
0.17
Depreciation 12,833

MC42 A
Cost 240,000.00
Residual value 12,000.00
Depreciable cost 228,000.00
Est.useful life 10.00
Annual depr. 22,800.00
12
Monthly depr. 1,900.00
months used 63
119,700.00

Sales price 130,000.00

Cost-CA of the asset (120,300.00)
Gain on sale 9,700.00

MC43 C
SYD 36.00
Cost 300,000.00
Residual Value 30,000.00
Depreciable cost 270,000.00
8+7/36
Accumulated deprciation 112,500.00

Straight-line method
(270,000/8)= 33,750 x 2 67,500.00
Greater than SLM 45,000.00

MC44 B
Annual depr. Rate 0.30
Depreciation expense-2021 30% x 600,000 x 6/12 90,000.00
 Depreciation expense-2022 30% x (600,000-90,000) 153,000.00

MC45
SLM
Total cost of factory building 260,000.00
salvage value 20,000.00
Depreciable amount 240,000.00
Est. useful life in years 40.00
Annual depreciation 6,000.00

Declining method depr. Rate 0.10

Depr. Expense Accu. Depreciation Carrying value

Start 240,000.00
Year 1 24,000.00 24,000.00 216,000.00
Year 2 21,600.00 45,600.00 194,400.00
Year 3 19,440.00 65,040.00 174,960.00

SYD 10.00
Cost of other fixtures 78,000.00
Salvage value 6,000.00
Depreciable amount 72,000.00

Depreciation expense on year 3

(72,000 x 2/10) 14,400.00

MC 46 A
Cost 110,000.00
Residual value 20,000.00
Depreciable cost 90,000.00
Remaining life 2/15
Depreciation expense 12,000.00
14,400,000.00
Total

5,950,000.00

201,375.00
(260,000 - 20,000) = 240,000/40
6,000.00

240,000 x .90 x .90 x .10 19,440.00