Paula Company had the following property acquisitions during the current year: Acquired a tract of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Paula Company had the following property acquisitions during the current year: • Acquired a tract of land and building in exchange for 50,000 ordinary shares of P100 par value with a market price of P120 per share on the date of acquisition. The last property tax bill indicated assessed value of P1,200,000 for the land and P2,800,000 for the building. However, the land has a fair value of P2,000,000 and the building has fair value of P3,500,000. • Received land from a major shareholder as an inducement to locate a plant in the city. No payment was required but the entity paid P50,000 for legal expenses for land transfer. The land is fairly valued at P1,000,000. Acquired a welding machine with an invoice price of P3,000,000 subject to a cash discount of 10% which was not taken. The entity incurred cost of P50,000 in removing the old welding machine prior to the installation of the new one. Welding supplies were acquired at a cost of P150,000. What is the total increase in property, plant and equipment as a result of the acquisitions? Paula Company had the following property acquisitions during the current year: • Acquired a tract of land and building in exchange for 50,000 ordinary shares of P100 par value with a market price of P120 per share on the date of acquisition. The last property tax bill indicated assessed value of P1,200,000 for the land and P2,800,000 for the building. However, the land has a fair value of P2,000,000 and the building has fair value of P3,500,000. • Received land from a major shareholder as an inducement to locate a plant in the city. No payment was required but the entity paid P50,000 for legal expenses for land transfer. The land is fairly valued at P1,000,000. Acquired a welding machine with an invoice price of P3,000,000 subject to a cash discount of 10% which was not taken. The entity incurred cost of P50,000 in removing the old welding machine prior to the installation of the new one. Welding supplies were acquired at a cost of P150,000. What is the total increase in property, plant and equipment as a result of the acquisitions?
Expert Answer:
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
Students also viewed these accounting questions
-
For $20 million, Ross Adams Mining acquired a tract of land containing a large deposit of anthracite coal. Ross Adams believes the most economical way to extract the coal is to strip- mine the site....
-
The Doris Company traded a tract of land to Ricks Real Estate for a similar tract of land with no significant effect on future cash flows. The old land had a carrying value of $ 6,500,000. The land...
-
During the current year, Stan sells a tract of land for $800,000. The property was received as a gift from Maxine on March 10, 1995, when the property had a $310,000 FMV. The taxable gift was...
-
Under unit-based absorption costing systems, are high- or low-volume products overcosted? Why?
-
Assume that Trevano Corp. in Exercise 15 uses the FIFO method of process costing. a. What proportion of work needs to be performed on the beginning inventory units to complete them? b. What are the...
-
The following two events occurred for Tankwell Co. on October 31, 2011, the end of its fiscal year: a. Tankwell rents a building from its owner for $3,300 per month. By a prearrangement the company...
-
5. CPA QUESTION An unemployed CPA generally would receive unemployment compensation benefits if the CPA: a. Was fired as a result of the employer's business reversals b. Refused to accept a job as an...
-
The following table provides the Dow Jones Industrial Average (DJIA) opening index value on the first working day of 1991-2010: Develop a trend line and use it to predict the opening DJIA index value...
-
Trevorrow Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgetsand performance reports. During June, the company budgeted for6,200 uni 2...
-
Noble plc, a listed company, has for a number of years paid an annual dividend of 90p per share on its 200,000 ordinary shares, which have a total market value of 930,000 cum div. The next annual...
-
Define and differentiate the differences between a cash flow hedge and a fair value hedge, including when (in or under which particular or specific circumstances) a U.S.-based firm would consider...
-
Firm A Revenues and Costs (thousands of dollars) 280 Total Revenues Total Costs 240 Firm B Revenues and Costs (thousands of dollars) 280 Total Revenues Total Costs 240- 200 200 Breakeven Point (30,...
-
Up&Down company is expected to go through multiple expansion phases before it reaches maturity stage. Its dividend today is $5. The dividends are expected to grow by 3% each year for the next 3 years...
-
Microfast Ltd. has a calendar-based taxation year ending December 31. As of January 1, 2023, Microfast had the following UCC balances for its various depreciable property: Class 1: $606,929 Class 8:...
-
1. A stock has a price of $40.4 and earnings per share of $3.11. What is the price-earnings ratio? Enter your response belowrounded to2 DECIMAL PLACES. 2. A preferred stock will have an annual...
-
Oriole Company's standard predetermined overhead rate is $8 per direct labor hour. For the month of June, 32,760 actual hours were worked, and 34,020 standard hours were allowed. How much overhead...
-
1. What is the current DSM-5 diagnostic criteria for ADHD 2.How does ADHD have effects on school performance and social interactions 3. The primary treatment of the disorder, often includes...
-
Uniform electric field in Figure a uniform electric field is directed out of the page within a circular region of radius R = 3.00 cm. The magnitude of the electric field is given by E = (4.50 x 10-3...
-
Keener Company has had 1,000 shares of 7%, $100 par preferred stock and 40,000 shares of $5 stated LO 16.1 value common stock outstanding for the last 3 years. During that period, dividends paid...
-
On January' 1, 2016, Pitt Company sold a patent to Chatham Inc. which had a carrying value on Pitts books of $10,000. Chatham gave Pitt a $60,000, non interest-bearing note payable in five AlCPA...
-
On January 1, 2016, Knox Company showed the following alphabetical list of shareholders equity items: Additional paid-in capital on common stock ........ $130,000 Additional paid-in capital on...
-
12. ROLE REVERSAL Write a multiple choice question that deals with the liability of principals for the acts of their employees.
-
Acting as an undisclosed principal, William Zeckendorf employed agents to purchase the land in New York on which the United Nations headquarters was ultimately built. Can you find any other examples...
-
Question: When Shiloh interviewed for a sales job at a medical supply company, the interviewer promised that she could work exclusively selling medical devices and would not have to be involved in...
Study smarter with the SolutionInn App