PROPERTY, PLANT, AND EQUIPMENT

Lp not included (Does not enhance Asset

- Since given any FU

ng Asset Sha aupriority
4)basket price

not capitalized
C
:

Basket Price:
·

2 , 0000 000
Cash price ,

cost 50 , 000
Installation
O
-
050 , 000
,
2

3 420 , 000
,

90 , 008

240 , 000
O

cost =
5M
-
casupried =

Is
4 5 .
1)
is land 7 ,
000 008
,

Cash
1, 000 , 000

Landolding
200 000
a)
7
, ,

2, 800, 000

Ordinary share 3 000 , 000

,

share premium 1 000 000

, ,

Allocate
purchase price
zi) Land 2400
, 000
-
bMX [15
=
Of GM base on

Appraised value
Building 3 600 , 000
,
- -
6MX3/5

Cash 4 000,
,
000
↳ Basket price

4) Land 2 , 250 , 000

Building 6 ,
750 000
, Basket Price =
9 , 000 , 000 (200Ksurs X *45 Quoted Price)

Ordinary share capital 5 , 000 , 000 (200 ,

000
X85) Assesed Value = L =
2M
-
D < Mx 2/8 =
2 ,
250 , 000

bM
(200 (45 25) B D 9M 4/8 6 , 750 000
=
4 , 000 , 000 000 x x =

Premium
- -

share , ,

Land -
1 , 000 , 000
Building =
2 , 800 , 008

1 , 200 , 008 3 , 600 , 000

2, 400 600

-50
,
,
000

2 250 000
, , 13 150 , 008
,
- -

4 600 , 000
,

-
-

2) Cash price Machine 2 050 , 000

e
2, 000

Our
i , 000

->
,

Installation cost : Discount 400 008

50 , 000
on NIP ,
- -

cost 2 /
050 , 000 Cash 450 , 000
-

-
NIP 1 , 200 , 000

OSC 500 , 000

SP 300, 000

2) Purchase Price (3 .
6Mx 95 % ) : 3 , 420 , 000

Shipping Cost : 90 , 000

Installation Cost :

vore
-

4) Yoha
Carrying Amount of Asset
- P 5M

1 5M
Cash
paid > .
-

ish
 4 000 000
,
,

When first payment t

Is made & bey 4 04
TMX .

current year
Of
use DV of
advance
of in

amantling fex
Ignore
operator does not enhance
machinery
 5) Entries Computation

Equipment -
New 4, 500 , 000 Cash price wout trade in : 4 , 500 , 000

Accumulated depreciation 3, 000

,
000 Less o trade
Cash price in : 900, 000

Loss on trade in (Squeeze) -

400 , 000 Trade in Value : 400 , 000
-

Equipment-Old 4 , 000 , 000 costOld equipment :

cash
3 , 900 , 000 Acc. Depreciation : 4 000, 00
,

Carrying Amount :

Ist Note
000 oe
4) Made at the
beginning of current
year : use PV of OA In Advance

>
- 1 , 000 000 x 4 04 :
4, 040 000
,
.

2nd Note

Use PV of OA

- 000 x 0 57

8000
5, 600 .
:

i) Purchase price (5 ,
000 , 000 x 93 % ) >
-

4 , 750 , 000

Cost D
Transportation 50 000
-

Installation Cost-D 150 , 000

Chief Salary (75Kx2/3) -

D 50 , 000

100, e
Less cash 1 00
grant allowance
-

OFFICE
87 EQUIPMENTS :

Raw Materials : 3 , 000 ,

000

Direct Labor : 500 000 cost : 6 000 000

2
, , FO , ,

Overhead: e
Factory 15/50
100000 1 , 800 , 008