to uninstall the equipment and restore the installation site at the end of the equipment's 8-year...

  

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to uninstall the equipment and restore the installation site at the end of the equipment's 8-year useful life, a process which Straw Co. estimates to cost about P4,000,000. The appropriate pre-tax discount rate is 10%. Requirement: Provide the journal entry. Acquisition through self-construction 7. Four AM Co. purchased a piece of land for P8,000,000 and started construction of a new building on the site. Information on the construction is as follows: Survey Architectural and engineering works Building permit Temporary structures built during construction Site clearing Excavation and backfilling 60,000 1,800,000 40,000 10,000 100,000 400,000 Abnormal loss on wasted materials and labor 00 00 00 00 Construction materials and labor for structural works 12,000,000 20,000 260,000 80,000 Insurance costs Uninsured accidents Safety inspection and supervision fees Income from incidental operations during construction Electrical lighting and wiring works Plumbing and sanitary works Elevator (included in bldg. design and installed during construction) 30,000 50,000 280,000 190,000 2,000,000 15,000,000 220,000 20,000 120,000 Finishing of Pavement and parking lot (included in building design) Clerical and other costs related to construction Costs of necessary design changes during construction Rentals of construction equipment Savings on self-construction- 290,000 90,000 Requirement: Compute for the costs charged to the land and the building, respectively. to uninstall the equipment and restore the installation site at the end of the equipment's 8-year useful life, a process which Straw Co. estimates to cost about P4,000,000. The appropriate pre-tax discount rate is 10%. Requirement: Provide the journal entry. Acquisition through self-construction 7. Four AM Co. purchased a piece of land for P8,000,000 and started construction of a new building on the site. Information on the construction is as follows: Survey Architectural and engineering works Building permit Temporary structures built during construction Site clearing Excavation and backfilling 60,000 1,800,000 40,000 10,000 100,000 400,000 Abnormal loss on wasted materials and labor 00 00 00 00 Construction materials and labor for structural works 12,000,000 20,000 260,000 80,000 Insurance costs Uninsured accidents Safety inspection and supervision fees Income from incidental operations during construction Electrical lighting and wiring works Plumbing and sanitary works Elevator (included in bldg. design and installed during construction) 30,000 50,000 280,000 190,000 2,000,000 15,000,000 220,000 20,000 120,000 Finishing of Pavement and parking lot (included in building design) Clerical and other costs related to construction Costs of necessary design changes during construction Rentals of construction equipment Savings on self-construction- 290,000 90,000 Requirement: Compute for the costs charged to the land and the building, respectively.

Answer rating: 100% (QA)

The following costs should be capitalized to the land and bui... View the full answer