Intermediate Accounting

1_Final Departmental
Examination

* Required

* This form will record your name, please fill your name.

Estimating procedures for inventory may be used,

Statement 1-to determine the cost of inventories destroyed by catastrophe.

Statement 2-To measure the cost of inventories for interim financial

statements purposes.

Statement 3-To validate the inventory cost determined through physical

count. *
(1 Point)

Statements 2 and 3 are true

Statements 1, 2 and 3 are true

Statements 1 and 2 are true

Only statement 1 is true

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 2

If the asset's carrying amount is increased as a result of a revaluation, the increase

shall be *
(1 Point)

credited to revaluation surplus

recognized to profit or loss

debited directly to revaluation surplus

credited to retained earnings

Depreciation, as generally used in accounting, is *

(1 Point)

Used to indicate a decline in market value of a long-lived asset.

A process of asset valuation for purposes of presentation in the statement of financial position.

Applicable only to long-lived intangible assets.

An accounting process which allocates long-lived asset cost to accounting periods.

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 4

According to PFRS9 Financial instruments, trade receivables that do not have a

significant financing component are initially measured at *
(1 Point)

Any of these

Fair value

Fair value plus transaction costs

Transaction price

Identify which of the following items are included as part of inventories

I. Raw materials

II. Goods in process

III. Unsalable goods

IV. Goods held on consignment by the entity

V. Goods out on consignment

VI. Advertising catalogs and shipping cartons

VII. Office Supplies *

(1 Point)

All of the items listed above

I, II, IV and VI

I, II and V

I, II, III and V

I and II
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When using the moving average method of inventory valuation, the new average
unit cost must be computed after each *
(1 Point)

Purchase and issuance from inventory

Month-end

Purchase

Issuance from inventory

YOU CAN DO IT Corporation has equipment with a carrying value of 450,000 on

December 31, 2021. The following information was available on December 31, 2021:

· Expected net cash flows (undiscounted)- P420,000

· Expected net cash flows discounted at 7%- P400,000

· Fair value, using the assets with other assets- P415,000

· Fair value, assuming the assets are sold stand-alone- P428,000

What is the impairment loss that the Company must report in its 2021 income
statement for this equipment? *
(2 Points)

P35,000

P30,000

P50,000

P22,000

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 8

Love Inc. and Life Co. have an exchange with no commercial substance. The asset
given up by Love Inc. has a book value of P12,000. The asset given up by Life Co. has
a book value of P20,000. Cash of P4,000 is received by Life Co. What amount should
Love Inc. record for the asset received? *
(2 Points)

P20,000

P19,000

P16,000

P23,000

Which inventory costing method has a stabilizing effect on profit, such that during a
period of rising prices its use produces a not so high cost of goods sold and not so
low profit as the earlier lower costs tend to stabilize the effect of increasing prices on
both cost of goods sold and ending inventory? *
(1 Point)

Last-in, first-out method

Specific identification method

First-in, first-out method

Average method

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 10

Statement 1: Bank reconciliation items such as outstanding checks and deposits in

transit does not result to adjusting journal entry even after discovery.

Statement 2: In case of any unresolved discrepancy between the book and bank
balance after all reconciliation items are considered, book balance shall be the basis
of the cash to be reported in the Statement of Financial Position. *
(1 Point)

True; True

False; False

True; False

False; True

11

On July 1, 2020, Zelensky Company, a calendar-year company, purchased a machine

for a cash price of P800,000, with an estimated useful life of 10 years and estimated
residual value of P70,000. The company uses double declining balance method. It is
the company’s policy to depreciate its assets to the nearest month.

During 2022, P131,500 was spent on an upgrade to the machine in order to improve
its efficiency and increase the inflow of economic benefits over the machine’s
remaining life. In addition, management decided to change to the straight-line
method of depreciation, maintaining its residual value of P70,000.
What is the revised depreciation expense for the year ended December 31,
2022? *
(2 Points)

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 12

Which of the following costs should not be capitalized? *

(1 Point)

Installation and assembly cost

Replacement of a building’s roof every 15 years

Cost of site preparation

Replacement of small spare parts annually

13

Mirabel Company has an old equipment that cost P700,000 with an accumulated
depreciation of P400,000. The equipment was traded in for a new machine that had a
list price of P800,000. However, the new machine could be purchased without trade
in for P780,000 cash. Mirabel paid P500,000 cash in the exchange. At how much
should Mirabel record the newly acquired machine? *
(2 Points)

P500,000

P780,000

P1,300,000

P800,000

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 14

The following factors would be recognized in identifying an asset that may be

impaired except: *
(1 Point)

An asset's market value had declined significantly during the period.

The carrying amount of the net assets of the reporting enterprise is more than its market capitalization.

Evidence of obsolescence or physical damage of an asset.

Change of accounting estimate and methods.

15

CuddlePH accepted several office equipment from a stockholder which originally

costed the donor P1,200,000. On the same date, the items had aggregated fair value
totaling P985,000. The company incurred P30,000 for professional fees and transfer
taxes related to the transaction. The amount was charged to other expenses. How
much should be the credited as donated capital? *
(2 Points)

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 16

Lucena Products provided the following information:

· Raw materials on hand- P85,000

· Raw materials used (including indirect materials of P35,000)- P258,000

· Labor (including indirect labor of P22,000; selling of P45,000; and administrative

of P60,000)- P275,00

· Manufacturing overhead costs (including indirect materials and indirect labor)-

P135,000

· Abnormal wasted materials and labor - P25,000

· Finished goods on hand- P160,000

How much inventory should be reported in the statement of financial position?

*
(2 Points)

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 17

Presented below is a list of items that may or may not be reported as inventory in a
company’s December 31 balance sheet.

1. Goods out on consignment at another company’s store- P800,000

2. Goods sold on installment basis- P100,000

3. Goods purchased F.O.B. shipping point that are in transit on December 31-
P120,000

4. Goods purchased F.O.B. destination that are in transit on December 31- P200,000

5. Goods sold to another company, for which our company has signed an agreement
to repurchase at a set price that covers all costs related to the inventory- P300,000

How much of these items would typically be reported as inventory in the

financial statements? *
(2 Points)

P800,000

P1,100,000

P1,520,000

P1,220,000

18

Any cash discount available on a credit purchase, whether taken or not, is a/n
_____________ the asset’s invoice price to arrive at the asset’s purchase price. *
(1 Point)

none of the choices is true

deduction from

addition to but is oftentimes ignored

addition to
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 19

An asset was constructed for an entity’s own use. The asset was financed with specific
new borrowing. The interest cost incurred during the construction period as a result
of expenditures for the asset is *
(1 Point)

taken as an interest expense in the construction period.

a part of the historical cost of acquiring the asset to be written off over the term of the borrowing used to
finance the construction of the asset.

a part of the historical cost of acquiring the asset to be written off over the estimated useful life of the
asset.

recorded as a deferred charge and amortized over the term of the borrowing.

20

On January 1, 2020, JJ Company purchased factory equipment for P3,000,000.

Estimated useful life of the equipment is 5 years and will be depreciated using the
150% declining balance method. What is the carrying amount of the equipment
at the end of 2021? *
(2 Points)

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 21

A building was acquired on January 1, 2019 at an original cost of P16,000,000, with

zero residual value. Depreciation is computed using Double Declining Balance
Method. Useful life in years is 20 years.

On December 31, 2020, the building is appraised at a fair market value of

P14,460,000.

The appraisal results are to be recognized in the accounts considering the same
remaining life for the building.

How much is the amount to be credited to revaluation surplus at December 31,

2020? *
(2 Points)

22

In which of the following situations is the production method of depreciation most

appropriate? *
(1 Point)

An asset incurs increasing repairs and maintenance with use.

An asset is subject to rapid obsolescence.

An asset’s service potential declines with use.

An asset’s service potential declines with the passage of time.

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 23

The entity decided to revalue the property plant and equipment. Which option
should be selected in relation to revaluation? *
(1 Point)

Since assets are being revalued regularly, there is no need to depreciate

Revalue one asset at a time as it is easier than revaluing all assets together

Revalue an entire class of property, plant and equipment

Revalue only one-half of each class property, plant and equipment

24

The balance of work in process inventory account as of December 31, of the current
year of Purewood Inc. amounted to P480,000. The estimated selling price is P450,000
while the estimate cost of completion and cost to sell amounted to P10,000 and
P5,000 respectively. How much is the the loss on inventory write-down? *
(2 Points)

25

Cost that are incurred in bringing the inventories to their present location and
condition are capitalized as cost of inventories and these include: *
(1 Point)

Cost of designing products for specific customers

Abnormal amount of waste material, labor and production costs.

Storage cost not necessary in the production process before a further production stage

Selling costs

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The work in process inventories of Jungkook Manufacturing, Inc. were completely

destroyed by fire on June 1, 2021. Amounts for the following accounts have been
established.

· Accounts payable, Jan. 1, 2021- P117,000

· Accounts payable, Jun. 1, 2021- P135,000

· Raw materials, Jan. 1, 2021- P15,000

· Raw materials, Jun. 1, 2021- P18,000

· Work in process, Jan. 1, 2021- P60,000

· Finished goods, Jan. 1, 2021- P69,000

· Finished goods, Jun. 1, 2021- P87,000

The following additional information was determined:

· Payments to suppliers for purchases on account, P60,000.

· Freight on purchases, P3,000.

· Purchase returns, P7,500.

· Direct labor, P48,000.

· Production overhead, P18,000.

· Sales from January 1 to May 31, P225,000.

· Sales returns, P45,000.

· Sales discounts, P15,000.

· Gross profit rate based on sales, 25%.

How much is the work in process destroyed by fire? *

(2 Points)

5/2/2022
 P49,500

P51,000

P58,500

P48,000

27

On January 01, 2022, TGIF Company sold equipment costing P10,000,000 with
accumulated depreciation of P5,500,000 in exchange for a P6,000,000 noninterest
bearing note due in equal annual installments of P2,000,000 every December 31,
2022. There was no established exchange price for the equipment and the note had
no ready market. The prevailing rate of interest for a note of this type at January 01,
2022 was 10%.

What is the carrying amount of the note on December 31, 2022? (Round off the
present value factors to 4 decimal places) *

28

On an entity’s April 30,2021 balance sheet a note receivable was reported as a

noncurrent asset and its accrued interest for eight months was reported as a current
asset. Which of the following terms would fit the entity’s note receivable? *
(1 Point)

Both principal and interest amounts are payable on December 31, 2021 and December 31, 2022.

Principal is due August 31,2022, and interest is due August 31, 2021, and August 31, 2022.

Principal and interest are due December 31, 2021.

Both principal and interest amounts are payable on August31, 2021, and August 31, 2022.

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Statement 1: An involuntary conversion occurs when your property is destroyed,

stolen, condemned, or disposed of under the threat of condemnation and you paid
other property or money in payment, such as insurance or a condemnation award.

Statement 2: The gain or loss arising from the derecognition of an item of property,
plant and equipment shall be determined as the difference between the net disposal
proceeds, if any, and the carrying amount of the item.

Statement 3: If the asset has still a carrying value at the time of permanent
abandonment, it will be charged to loss. *
(1 Point)

All statements are false.

All statements are true.

Only Statement 2 and 3 is true.

Only Statement 1 and 2 is true.

Only Statement 1 and 3 is true.

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 30

Suga Corp. had a checkbook balance on December 31, 2021 of P10,000,000 and held
the following items in the safe:

· Check payable to Suga, dated January 4, 2021, included in the December 31

checkbook balance- P3,000,000

· Check payable to Suga, deposited December 20 and included in the December

31 checkbook balance but returned by bank on December 30, stamped NSF. The
check was redeposited on January 2, 2022 and cleared January 3, 2022- P1,000,000

· Check drawn on Suga’s account and payable to contractor, dated and recorded
December 31 but not mailed until January 15, 2022- P1,500,000

· Cash on hand - undeposited collections- P500,000

· Change fund- P10,000

· Time deposit for plant expansion- P1,000,000

· Treasury bill- P2,500,000

· Money market placement- P3,000,000

· Postage stamps- P5,000

What is the total amount should be reported as cash on December 31, 2021? *
(2 Points)

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 31

At what amount should Accounts Receivable, net of Allowance for Doubtful

Accounts, be reported at December 31, 2021? *
(2 Points)

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 32

I. Under FIFO, Cost of Goods Sold and Ending Inventory are the same regardless of
the inventory system used.

II. First-In First-Out method of allocating inventory costs understates Net Income
during inflation.

III. Under the perpetual system, weighted average method is used to allocate cost to
goods that are not ordinarily interchangeable. *
(1 Point)

Only statement I is true.

Only statement II is false.

All statements are false.

Statements I & II are true.

33

Putin Company reported an impairment loss of P5,200,000 in its income statement

for the year 2016. This loss was related to a building that was acquired on January 1,
2012 with a cost of P80,000,000 (no residual value). Depreciation on the building is
computed on a straight-line basis at the rate of 4% per year. Depreciation for the
year 2017 was computed based on the asset’s recoverable amount at December 31,
2016.

On December 31, 2021, the entity decided to measure its building using revaluation
model. This building was then appraised to a fair value of P50,000,000.

What amount of gain on impairment recovery should Putin Company report in

its 2021 income statement? *
(2 Points)

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 34

On January 1, 2019, Tarlac Company acquired a machine for P4,500,000. The machine
has a useful life of 10 years with no salvage value. Tarlac is using the revaluation
model.

On January 1, 2021, the machine was revalued at P5,200,000. The accumulated

depreciation to be reported for this machine at December 31, 2022 would be:
*
(1 Point)

35

When the fair value of the biological asset cannot be determined reliably, the
biological asset should be measured at *
(1 Point)

Cost

Cost less accumulated depreciation and accumulated impairment losses

Cost less accumulated depreciation

Net realizable value

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 36

Statement I: The proof of cash may also be prepared following the bank to book
format and the book to bank format

Statement II: For proof of cash from October 31 – November 30, 2021, deposits in
transit as of November 30 should be deducted from receipts of November and
added to column November 30, 2021 *
(1 Point)

Only statement II is true

Both are false

Both are true

Only statement I is true

37

The notes receivable account of Caimito, Inc. consisted of the following:

1. 60-day note of P10,000 dated May 15 with a 9% interest rate, discounted at the
bank on June 8 at 12%.

2. 120-day note of P100,000 (face amount) dated October 1 with no stated interest
rate and a market rate of 9% interest, discounted at the bank on November 30 at
12%. This note was received from the sale of equipment.

The proceeds from discounting of the 60-day note amount to *

(2 Points)

P10,028

P10,059

P10,150

P10,000

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 38

If the cash balance shown in the company’s accounting records is more than the
correct balance , and neither the company nor the bank has made any errors, there
must be *
(1 Point)

Outstanding checks

Deposit in transit

Charges made by the bank but not yet recorded by the company.

Deposits credited by the bank but not yet recorded by the company.

39

Future, Inc. had the following bank reconciliation on March 31, 2022:

· Balance per bank statement, 3/31/2022- P46,500

· Add deposit in transit- P10,300

· Less outstanding checks- P12,600

· Balance per books, 3/31/2022- P44,200

Data per bank for the month of April 2022 follow: Deposits 58,400 Disbursements
49,700. All reconciling items on March 31, 2022, cleared the bank in April.
Outstanding checks on April 30, 2022, totaled 7,000. There were no deposits in
transit on April 30, 2022. What is the cash balance per books on April 30, 2022?
*
(2 Points)

P48,200

P52,900

P55,200

P58,500

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 40

What is the ending inventory at estimated cost using the First-in, First-out
inventory method? *
(2 Points)

P224,000

P256,000

P240,000

P320,000

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 41

One or more items in property, plant and equipment maybe acquired in exchange for
non-monetary asset or assets, or a combination of monetary and non-monetary. The
cost of such an item in property, plant and equipment is measured at fair value
unless

Statement I. The exchange transaction has commercial substance

Statement II. Either fair value or an asset given up and the fair value of the asset
received are not reliably measurable *
(1 Point)

Both statements are true

Statement I is true; Statement II is false

Both statements are false

Statement I is false; Statement II is true

42

Company A had a machine with a carrying amount of P450,000. Company B had a

delivery vehicle with a carrying amount of P300,000. Companies A and B exchanged
the machine and vehicle, and Company B paid an additional P90,000 cash as part of
the exchange. Assume that fair value of delivery vehicle is P420,000. If the exchange
has commercial substance, how much gain or loss should be recorded by
Company A? *
(2 Points)

P120,000 gain

P60,000 gain

P120,000 loss

P30,000 loss

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 43

On January 1, 2017, Jungkook Company purchased an equipment for P1,970,000. On

this date, the equipment has an estimated economic useful life of 12 years and
estimated residual value of P98,000. It is the company’s policy to depreciate this type
of equipment using a sum-of-years digit. On January 1, 2021, Jungkook Company
made a review of the estimated useful life and salvage value of the equipment and
review revealed that the asset has a revised total life of 14 years and a residual value
of P100,000. The company also changed the method of depreciation to straight-line.
What is the carrying value of the asset of December 31, 2022? *
(2 Points)

P865,800

P789,600

P769,600

P875,800

44

The Jessica Company purchased a drilling machine on October 1, 2018 at a cost of

P250,000 and depreciated it at 25% per annum on a straight-line basis. On October
1, 2020, P50,000 was spent on an upgrade to the machine in order to improve its
efficiency and increase the inflow of economic benefits over the machine’s remaining
life. How much depreciation expense should be recognized in profit or loss for
the year ended September 30, 2021? *
(2 Points)

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 45

A piece of equipment is acquired by an entity by issuing 10,000 shares of P10 par

ordinary shares. The equipment has a list price of P150,000 and a trade discount of
10%. If paid in cash at the time of purchase, a 5% cash discount is allowed. The
company’s ordinary shares are actively traded in a capital market with an average
market price of P13 at the date of the exchange. What is the cost of the
equipment? *
(2 Points)

P128,250

P150,000

P130,000

P135,000

46

Using FIFO method, how much is the ending inventory? *

(2 Points)

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 47

For more than a decade since its incorporation, Feb-Ibig Company had been renting
its office space. The Company President thought of constructing their own building
for P40,000,000 which they plan to start and finish until December 31, 2021.

Feb-Ibig made the following payments, based on the construction contract, during
2021.

· January 31- P5,000,000

· February 28- P8,000,000

· July 1- P15,000,000

· August 31- P10,000,000

· November 30- P2,000,000

Feb-Ibig secured a 10%, 4-year noted dated January 1, 2021, specifically intended for
the construction. The amount was P20,000,000.

Also, the entity had other debts outstanding as follows:

· 8%, 6-year note dated December 31, 2019- P18,000,000

· 12%, 7-year noted dated December 31, 2018 - P22,000,000

What is the total cost of the building constructed? *

(2 Points)

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 48

Inventory estimation techniques would not be useful when *

(1 Point)

A basis is needed for comparing the actual inventory count

The same mark-up percentage is charged to all items

A periodic inventory system is used and the amount of inventory is needed for interim reporting purposes

Inventory value is needed for external reporting purposes

49

If a unit of inventory has declined in value below the original cost, but the market
value exceeds net realizable value, the amount to be used for purposes of inventory
valuation is *
(1 Point)

Net Realizable Value

Market Value

Net Realizable Value less a normal profit margin

Original Cost

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 50

Rainbow Company has the following information pertaining to its biological assets
for the year 2021.

A herd of 100, 2-year old animals was held at January 2, 2021. Ten animals aged 2.5
years were purchased on July 1, 2021 for P5,400, and ten animals were born on July
1, 2021. No animals were sold or disposed of during the period. Per unit fair values
less estimated cost to sell were as follows:

· 2.0-year old animal at January 1, 2021- P5,000

· Newborn animal at July 1, 2021- P3,500

· 2.5-year old animal at July 1, 2021- P5,400

· Newborn animal at December 31, 2021- P3,600

· 0.5-year old animal at December 31, 2021- P4,000

· 2.0-year old animal at December 31, 2021- P5,250

· 2.5-year old animal at December 31, 2021- P5,550

· 3.0-year old animal at December 31, 2021- P6,000

What is the fair value of the biological assets as of December 31, 2021? *
(2 Points)

P700,000

P735,000

P554,000

P581,500

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 51

Meatballs Company purchased forest assets for a lump sum amount of P45,000,000
which is equal to the lump sum value of the group of assets. At the time of purchase,
the company is unable to determine the fair value of the trees separately since no
active market was clearly available. The other assets are the group had a
determinable fair value. The forest assets are listed below and their related fair value
less point to sell costs: Land under trees- P9,500,000; and Road in forest- P7,000,000.
What amount should the biological asset be initially recorded? *
(2 Points)

52

Statement 1: If the goods are in transit under FOB seller arrangement, the goods are
still owned by the seller until the goods arrived at the destination.

Statement 2: If the goods are in transit under FOB buyer arrangement, the goods
are already owned by the buyer. *
(1 Point)

Both statements are false.

Only statement 2 is true.

Both statements are true.

Only statement 1 is true.

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 53

What is the amount of cash disbursements per book in September? *

(2 Points)

P10,950,000

P9,825,000

P10,275,000

P10,050,000

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 54

TGIF Company owned a building on January 01, 2019, with historical cost of
P52,000,000. The property is depreciated over 40 years on a straight-line basis with
no residual value. The entity adopted a policy of revaluation of property. The building
had so far been revalued twice at fair value. The fair values of the building are as
follows: January 01, 2020 – P60,840,000; January 01, 2022 – P72,150,000.

How much is the revaluation surplus to be reported in the statement of changes

in equity for the year ended December 31, 2022? *
(2 Points)

P24,050,000

P24,570,000

P23,400,000

P23,660,000

5/2/2022
 55

What is the amount of Inventory to be presented at the Balance Sheet date

using the LCNRV Individual approach? *
(2 Points)

5/2/2022
 56

Angel Corp. uses different kinds of machines in its manufacturing process. The
following information relates to the acquisition of machines that it has recorded in
2021.

· Cash paid for equipment- P250,000

· Cost of transporting machine - insurance and transport- P9,000

· Labor cost of installation by expert fitter- P15,000

· Labor cost of testing equipment- P12,000

· Insurance cost for 2021- P4,500

· Cost of training for personnel who will use the machine- P7,500

· Cost of safety rails and platforms surrounding machine- P18,000

· Cost of water devices to keep machine cool- P24,000

· Cost of adjustments to machine during 2021 to make it operate more

efficiently- P22,500

What is the cost of the machine? *

(2 Points)

P380,500

P358,000

P350,500

P328,000

5/2/2022
 57

The property, plant and equipment account of Cuddle PH was revisited by its
property officers. They discovered that due to obsolescence, machineries with a total
historical cost of P2,100,000 and accumulated depreciation of P1,750,000, will no
longer provide economic benefits to the company wither from its disposal or use.

Which of the following will be included in the journal entries to record the
derecognition of these machineries? *
(2 Points)

credit Accumulated Depreciation, P1,750,000

credit Loss from Derecognition, P350,000

credit Machineries, P350,000

credit Machineries, P2,100,000

58

Which statement is true when accounts receivables are factored without recourse? *
(2 Points)

The transaction may be accounted for either as secured borrowing or sale.

The accounts receivable is used as collateral

The factor assumes the risk of collectability and absorbs any credit losses in collecting the accounts
receivable.

The financing cost should be reported ratably over the collection period.

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 59

Jungkook Co. purchased goods with invoice price of P3,000 on account on December
27, 2021. The related shipping costs amounted to P50. The seller shipped the goods
on December 31, 2021. Jungkook Co. received the goods on January 2, 2022 and
settled the account on January 5, 2022. How much is the capitalizable cost of the
inventory purchased if the terms of the shipment are FOB shipping point, freight
prepaid? *
(2 Points)

P2,950

P3,050

P0

P3,000

60

Laguna Company purchased a machine with a cash price of P350,000. Laguna

gave the following as payment:

· Cash- P100,000

· Notes payable, non-interest bearing (payable in three equal annual payments,

beginning 1/1/23)- P150,000

· Laguna 1,000 ordinary shares, P100 par (fair value P130)- P100,000

How much is the discount on notes payable to be recorded on the date of

purchase? *
(2 Points)

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 61

How should sale staff commission be dealt with when valuing inventories at the
lower of cost and net realizable value (NRV), according to PAS 2 Inventories? *
(1 Point)

Deducted from cost

Deducted in arriving at NRV

Ignored

Added to cost

62

What is the ending inventory on August 31? *

(2 Points)

P1,501,600

P1,522,880

P1,500,800

P1,529,600

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Which of the following statements in relation to agricultural produce is correct?

I. In all cases, an entity shall measure agricultural produce at the point of harvest at
fair value less cost to sell

II. PAS 41 reflects the view that the fair value of agricultural produce at the point of
harvest can always be measured reliably *
(1 Point)

Neither I nor II

Both I and II

I only

II only

64

Which of the following statements are true? *

(1 Point)

If the donor is a shareholder, a revenue or gain is recognized at an amount equal to the value of the
donated asset.

If the donor is a shareholder, the donation is recorded by crediting an appropriately titled additional paid
in capital account.

PPE received as donation is recorded at its fair value less cost to sell at the time of donation.

All of the above.

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 65

If there is a change from double declining balance to straight line method *

(1 Point)

The accumulated depreciation is adjusted to its appropriate balance through retained earnings based on
the straight-line method

The accumulated depreciation is not adjusted but the remaining carrying amount is allocated over the
remaining life using the straight-line method

The accumulated depreciation is adjusted to its appropriate balance through net income based on the
straight-line method

The accumulated depreciation is not adjusted but the remaining carrying amount is allocated over the
original life using the straight-line method

66

NAME (SURNAME, FIRST NAME MI.) ALL IN CAPITAL LETTERS *

67

COURSE, YEAR & SECTION (Course<space>2-Section ; example: BSA 3-1)

Incorrect section will invalidate your answers. *

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 68

STUDENT NUMBER (Example: 2008-00432-MN-0) *

69

BRANCH/CAMPUS *

PUP Main (Sta. Mesa)

PUP Alfonso

PUP Bataan

PUP Binan

PUP Lopez

PUP Maragondon

PUP San Juan

PUP San Pedro

PUP Sta. Maria, Bulacan

PUP Sta. Rosa, Laguna

PUP Sto. Tomas

PUP Taguig City

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