Property, Plant, & Equipment - Show complete solution and explain:

Item 16

Wednesday has equipment worth P93,500, with P64,000 accumulated depreciation.Wednesday asks P35,000 for the equipment but sells it for P33,000. Calculate the GAIN or LOSS on the sale.

Item 17

Thursday Company bought a machine on December 31, 2018, on a deferred payment contract. Thursday Co. is obliged to make eight yearly payments of P140,000 each starting December 31, 2019, according to the provisions of the contract. The appropriate rate of interest is 8%.

What is the machine's purchase price? (PV of ordinary annuity at 8% for 8 periods is 5.74664)

Item 18

For items 18 to 20

Friday Company incurred the following expenses in 2021:

Purchase of land P3,900,000 Land survey 52,000 Fees for search of title for land 6,000 Building permit 35,000 Temporary quarters for construction crews 107,500 Payment to tenants of old building for vacating premises 46,000 Razing old building 470,000 Excavating basement 100,000 Special assessment tax for street project 20,000 Dividends 50,000 Damaged awarded for injuries sustained in construction (no insurance was carried) 84,000 Costs of construction 29,000,000 Cost of paving parking lot adjoining building 400,000 Cost of shrubs, trees and other landscaping 330,000