Please solve and show the complete solution of ecah problem

II. PROBLEMS. 71. Sierra Company determined that due to the obsolescence, equipment with an original cost of P180, 080 and accumulated depreciation at january 1, 2011 of P84, 090 had suffered permanent impairment, and as a result should have a fair value of only P60, 080 as of the beginning of the year. Additionally, the remaining useful life of the equipment was reduced from eight years to three years. If the company's policy is to credit accumulated depreciation when a PPE is impaired, how much is Sierra Company's total accumulated depreciation as of December 31, 2011 statement of financial position? 12. Suga Co. has the following assets. Vacant building to be leased out under operating lease 4, 000, 080 Building being constructed for Jimin, Inc. 800, 800 Building under construction to be used as office 1, 608, 080 Building under construction to be rented out under operating lease 400, 800 Building rented out to Suga's employees who pay rent at market rates 3, 200, 080 Office building awaiting disposal 200, 080 How much is the total investment property? 13. Vero Co. incurred the following costs during 20x7: Engineering and follow-through in an early phase of production 008'et Conceptual formulation and design of possible product alternatives 120,090 Periodic design changes to existing products 60, 000 Radical modification of the design of a product 80, 000 How much is the research and development expense in 20x7?1 4. Demmie Co. purchased from Trixie Co. an intangible asset for $10, 808. A 5% discount is available on the purchase. On acquisition date, the exchange rate was 46: $1. Installation and testing costs amounted to 25, 090. How much is recorded as an intangible asset? 15. on January 1, 2022, the biological assets of Arabella Co. consist of ten two year old animals with fair value less cost to sell of P12,000 each for a total of P120, 060. Transactions during the year include the following: One animal aged 2.5 years was purchased on July 1, 2022 for P10, 080 One animal was born on July 1, 2022. o No animals were sold or disposed of during the period. Per-unit fair values less costs to sell are as follows: Newborn animal at July1, 2022 6, 000 2.5 year old animal at July 1, 2022 10, 009 Newborn animal at December 31, 2022 080'2 5 year old animal at December 31, 2022 8, 800 2 year old animal at December 31, 2022 13, 100 2.5 year old animal at December 31, 2022 13, 500 3 year old animal at December 31, 2022 14,000 Compute for the following: a. Total gain (loss) from changes in FVLCS b. Change in FVLCS attributable to price change c. Change in FVLCS attributable to physical changeh stock rights had an expiration date on February 1, 2017. On September 30,2016, the :h:re had a market value of P95 and the stock right had a market value of P5. What amount should be reported on Sept 30. 2016 for investment in stock rights? 7. Answer: . On April 30, 2002. BTS owned a P50,000 whole-life insurance policy with a cash surrender value of Pl7.700. The cash surrender value is used as collateral security for an outstanding loan of Pl 5,000 with 3% interest. In BTS'S April 30, 2002 statement of nancial position, what amount should he reported as investment in life insurance? 8. Answer: - On December 10, 2021, Nine Co. entered into a 30-day forward contract to sell P2,000,000 yens at the forward rate of P3.00. On December 31, 2021, the forward rate was P260 and by January 10, 2022 the spot rate moved to P230. How much is the gain (loss) recognized on the forward contract on December 31, 2021 9. Answer: I During the period, an entity acquired a call option for a certain commodity for P120,000. The strike price is 3,000,000. The option was not designated as a hedging instrument. At the reporting date, prior to settlement, the current price of the related commodity is P 3,500,000. How much is the carrying amount of the call option in the entity's end-of-period statement of nancial position? 10. Answer: On January 1, 2017, BTS Company purchased equity securities to be held at fair value thru other comprehensive income. On December 31, 2017 the cost and market value were: Cost Market Security A 1,000,000 1,200,000 Security B 1,500,000 1,750,000 Security C 2,500,000 2,450,000 On July 1, 2018, the entity sold Security A for P 1, 250,000. What total amount should be recognized directly in retained earnings as a result of the sale of financial asset in 2018? 2. Answer: On September 1, 2016, THE Company acquired as a long term investment P1, 000,000 face amount, 12% bonds of Rand Company fro P1,615,000 to yield 10% per year. The bonds pay interest semi-annually on January 1 and July 1. On the acquisition date, What amount should be recorded as debit to interest income? 3. Answer: . On January 2, 2014, BTS Company acquired as long term investment for P700,000, a 20% ordinary share interest in EXO Company When the fair value of EXO's net assets was P3,500,000. BTS can exercise significant influence over operating and financial policies of EXO. For the year ended December 31, 2014, EXO reported net income of P360,000, declared and paid cash dividends of P100,000. A. How much investment income from this investment should BTS report for 2104? B. How much is the carrying amount of investment in associate on December 31, 2014? 4. A. Answer:. 5. B. Answer: BTS Company purchased 20,000 shares outstanding pf EXO's ordinary shares of February 23, 2014 for P924,000. BTS has designated the equity security at fair value to other comprehensive income. BTS received a P40,000 cash dividend from EXO on July 1, 2014. EXO declared a 10% share dividend on December 1, 2014, P40 on December 31, 2014 and P42 on January 31, 2015. What should BTS record as dividend income for the year ended December 31, 2014? 6. Answer: On March 1, 2016 VTS purchased 10,000 ordinary shares at P80 per share. On Sept 30, 2016, BTS received 10,000 stock rights to purchased 10,000 shares at 90 per share.PROBLEM SOLVING. BTS Company bought 2,000 shares of EXO Company on january 2, 2014 at P150 per share and paid brokerage fee of P2. 250. At the time of acquisition, HTS Company had designated the equity security at fair value through Prot or Loss. Prior to the acquisition date, information revealed that on December B. 2013, EXO Company declared a P10 (ash dividend to shareholders on record as of ]an 31, 2014 payable on April 30, 2014. There was no other transaction in 2014 involving the investment In Miguel Company. What is the Historical cost of the investment account? 1