Required: Based on the above facts, answer the following:

1) What is the total cost of the motor vehicle at the end of 2018

2) What is the total cost of the machine at the end of 2018

3) What is the total cost of the precision machine at the end of 2018

4) What is the total cost of the building at the end of 2018

5) What is the amount of subsequent expenditure to be expense for the year 2018

Transcribed Image Text:

The following items relate to the property, plant and equipment of Karen Company on January 1, 2018: Land - Motor vehicle Machine • Precision Machine • Building Building Improvement Additional Information: ● Php 3,000,000 790,000 1,900,000 600,000 4,100,000 150,000 On March 2, a machine which had originally cost Php 1,300,000 was rearranged at a cost of Php 45,000 including installation, in order to improve production On June 1, Karen Company installed a sprinkler system throughout the building at a cost of Php 130,000. The installation is considered as part of the blue print of the building. As a result, the insurance rate was decrease by 40% On June 30, a motor in one of Karen Company trucks was overhauled at a cost of Php 60,000. It is expected that this will extend the life of the truck for 2 years Klaire, a maintenance worker spent five days in unloading and setting up a new Php 600,000 precision machine in the plant. The wages earned in this five day period amounted to Php 48,000 An improvement was made on December, which had extended the life but not the usefulness of the machine for Php 60,000 The attic of the administration building was finished at a cost of Php 500,000 to provide an additional office Routine repair and maintenance was also incurred during the last month of the year amounting to Php 26,000. The following items relate to the property, plant and equipment of Karen Company on January 1, 2018: Land - Motor vehicle Machine • Precision Machine • Building Building Improvement Additional Information: ● Php 3,000,000 790,000 1,900,000 600,000 4,100,000 150,000 On March 2, a machine which had originally cost Php 1,300,000 was rearranged at a cost of Php 45,000 including installation, in order to improve production On June 1, Karen Company installed a sprinkler system throughout the building at a cost of Php 130,000. The installation is considered as part of the blue print of the building. As a result, the insurance rate was decrease by 40% On June 30, a motor in one of Karen Company trucks was overhauled at a cost of Php 60,000. It is expected that this will extend the life of the truck for 2 years Klaire, a maintenance worker spent five days in unloading and setting up a new Php 600,000 precision machine in the plant. The wages earned in this five day period amounted to Php 48,000 An improvement was made on December, which had extended the life but not the usefulness of the machine for Php 60,000 The attic of the administration building was finished at a cost of Php 500,000 to provide an additional office Routine repair and maintenance was also incurred during the last month of the year amounting to Php 26,000.

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