Purchase of new machinery Total property, plant and equipment In exchange for the plant assets of...

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Purchase of new machinery Total property, plant and equipment In exchange for the plant assets of Zee Company, Pearl Company issued 50,000 shares with P100 par value. On that date of purchase, the share had a quoted price of P150 and the plant assets had the following fair value: Land Testing On December 31, 2020, what amount should be reported as machinery? Building Machinery What is the cost of land? What is the cost of building? What is the cost of machinery? On October 1, 2020, Shaw Company purchased a machine for P1,260,000 that was placed in service on November 30, 2020. The entity incurred additional costs for this machine as follows: Shipping Installation 30,000 40,000 50,000 Transportation to Charry's factory Machine refurbishment costs prior to reinstallation Reinstallation What is the cost of the second-hand machine? Charry Company purchased a second-hand polishing machine and incurred the following costs: Agreed price to be paid to vendor Dismantling the machine at its current location King Company made the following expenditures: Continuing and frequent repairs Repainted the plant building 800,000 9,000,000 Major improvements to the electrical wiring system Partial replacement of roof tiles What amount should be charged to repair and maintenance expense? 500,000 4,000,000 1,500,000 Annual maintenance (performed at this time for convenience) What total amount of the costs incurred should be capitalized? 8,000,000 400,000 350,000 175,000 125,000 400,000 100,000 300,000 140,000 Kent Company completed the rearrangement of group of factory machines to secure greater efficiency in production. The entity estimated that benefits from the rearrangement would extend over the remaining five-year useful life of the machines. The following costs were incurred: Moving Reinstallation 350,000 750,000 100,000 On June 30, 2020, a fire in Pine Company's plant caused a total loss to a production machine. The machine was depreciated at P200,000 annually and had a carrying amount of P1,600,000 on January 1, 2020. On the date of the fire, the fair value of the machine was P2,200,000, and the entity received insurance proceeds of P2,000,000 in October 2020. What amount should be recognized as gain on disposition? Purchase of new machinery Total property, plant and equipment In exchange for the plant assets of Zee Company, Pearl Company issued 50,000 shares with P100 par value. On that date of purchase, the share had a quoted price of P150 and the plant assets had the following fair value: Land Testing On December 31, 2020, what amount should be reported as machinery? Building Machinery What is the cost of land? What is the cost of building? What is the cost of machinery? On October 1, 2020, Shaw Company purchased a machine for P1,260,000 that was placed in service on November 30, 2020. The entity incurred additional costs for this machine as follows: Shipping Installation 30,000 40,000 50,000 Transportation to Charry's factory Machine refurbishment costs prior to reinstallation Reinstallation What is the cost of the second-hand machine? Charry Company purchased a second-hand polishing machine and incurred the following costs: Agreed price to be paid to vendor Dismantling the machine at its current location King Company made the following expenditures: Continuing and frequent repairs Repainted the plant building 800,000 9,000,000 Major improvements to the electrical wiring system Partial replacement of roof tiles What amount should be charged to repair and maintenance expense? 500,000 4,000,000 1,500,000 Annual maintenance (performed at this time for convenience) What total amount of the costs incurred should be capitalized? 8,000,000 400,000 350,000 175,000 125,000 400,000 100,000 300,000 140,000 Kent Company completed the rearrangement of group of factory machines to secure greater efficiency in production. The entity estimated that benefits from the rearrangement would extend over the remaining five-year useful life of the machines. The following costs were incurred: Moving Reinstallation 350,000 750,000 100,000 On June 30, 2020, a fire in Pine Company's plant caused a total loss to a production machine. The machine was depreciated at P200,000 annually and had a carrying amount of P1,600,000 on January 1, 2020. On the date of the fire, the fair value of the machine was P2,200,000, and the entity received insurance proceeds of P2,000,000 in October 2020. What amount should be recognized as gain on disposition?

Answer rating: 100% (QA)

Lets calculate the costs and gain on disposition as requested 1 Cost of Land The fair value of the l... View the full answer