PROBLEM:

On December 31, 2021, the following data was provided during the financial

statement preparation of PERALTA CORP. and its subsidiaries consolidated financial

statements:

Item Amount

1. Farming land that was purchased for its investment

potential. Planning permission has not been obtained

for building constructions of any kind.

Php 800,000

2. A building that is leased to an associate under

operating lease

1,260,000

3. Factory building which due to decline in activity

because of COVID-19 pandemic, is no longer needed

and is now being held for immediate sale in its present

condition and the sale is highly probable.

500,000

4. A building being constructed on behalf of SANTIAGO

CORP.

1,000,000

5. A property that is in the process of construction for sale 950,000

6. A property intended for sale in the ordinary course of

business

450,000

7. Owner-occupied properties 1,600,000

8. Buildings occupied by employees. The employees pay

rent on the building they occupy.

760,000

9. Buildings occupied by employees. The employees do

not pay market rent on the building they occupy.

240,000

10. A new machine leased by PERALTA under operating

lease

530,000

11. A building that is being constructed for future use as

administration building.

870,000

12. A building that is held under mixed use; half of it is

owner-occupied and the other half is to earn rentals.

1,720,000

13. A building wherein significant security and maintenance

services are provided to occupants

960,000

14. Land and building leased to a subsidiary of PERALTA

2,100,000

15. An equipment that is leased to a third party under

finance lease

1,110,000

Required: Compute for the following:

1. Investment properties

2. Property, plant and equipment