Problem 1 Problem 2 Situation 1: Minmin Company made the following individual cash purchases: Land and building

Problem 1

Problem 2

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Situation 1: Minmin Company made the following individual cash purchases: Land and building Machinery and office equipment Delivery equipment An appraisal disclosed the following fair values: Land Building Machinery Office equipment Delivery equipment P 6,000,000 1,800,000 500,000 Land Building Machinery P 1,000,000 3,000,000 800,000 400,000 350,000 Situation 2: Afable Company acquired the assets of another entity with the following fair value: P 1,000,000 5,000,000 2,000,000 The entity issued 60,000 shares with P100 par value in exchange. The share had a quoted price of P150 on the date of purchase of the property. Situation 3: A shareholder of WonWon Corporation gave the corporation a piece of land as a plant site. The fair value of this land is determined to be P500,000. Situation 4: YoYo Company paid cash for machinery, P900,000 subject to a 2% cash discount if paid within 15 days, and freight on machinery, P35,000. YoYo paid beyond the 15 day period and therefore did not take the cash discount. Situation 1: Minmin Company made the following individual cash purchases: Land and building Machinery and office equipment Delivery equipment An appraisal disclosed the following fair values: Land Building Machinery Office equipment Delivery equipment P 6,000,000 1,800,000 500,000 Land Building Machinery P 1,000,000 3,000,000 800,000 400,000 350,000 Situation 2: Afable Company acquired the assets of another entity with the following fair value: P 1,000,000 5,000,000 2,000,000 The entity issued 60,000 shares with P100 par value in exchange. The share had a quoted price of P150 on the date of purchase of the property. Situation 3: A shareholder of WonWon Corporation gave the corporation a piece of land as a plant site. The fair value of this land is determined to be P500,000. Situation 4: YoYo Company paid cash for machinery, P900,000 subject to a 2% cash discount if paid within 15 days, and freight on machinery, P35,000. YoYo paid beyond the 15 day period and therefore did not take the cash discount.

Answer rating: 100% (QA)

a For Minmin Company the allocation of costs for the assets is as follows i Land P6000000 ii Buildin... View the full answer