Syarikat Harapan Cerah Bhd acquired a 20-hectare piece of land in January 2018 at a cost...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Syarikat Harapan Cerah Bhd acquired a 20-hectare piece of land in January 2018 at a cost of RM10 million, with the intention to develop the land to become a new city at Batu Kawan, Penang. Other costs incurred to buy the land are professional fees RM250,000 and stamp duties RM50,000. The company also incurred another RM500,000 in levelling and clearing the land. The company intends to develop the land in two phases: Phase I and Phase II. Phase I is taking up 5 hectares for the construction of single-storey house and Phase II is taking up 10 hectares for the construction of bungalow. The balance of 5 hectares is used to develop a common area. Construction work commenced on 1 March 2018 and expected to complete by year 2020. The financial data for 2018 financial year are as follows: Units to be developed Unit sold Selling price per unit Development costs incurred to date Common cost allocated Estimates of development costs to complete REQUIRED: Phase I (single storey). Phase II (bungalow) 100 units 50 units 40 units RM 300,000 RM2,000,000 RM1,636,364 RM4,000,000 30 units RM 500,000 RM3,000,000 RM1,363,636 RM8,000,000 1. Determine percentage of completion for Phase I and II using the cost-to-cost basis (Round up your answer to 1 decimal point). 2. Prepared a partial Statement of Profit and Loss for the year ended 2018 showing the amount of revenue and expenses to be recognized. (Round up your answer to the nearest RM). 3. Assume the company cannot determine the percentage of completion reliably, how should the company recognize its revenue during year 2018? Syarikat Harapan Cerah Bhd acquired a 20-hectare piece of land in January 2018 at a cost of RM10 million, with the intention to develop the land to become a new city at Batu Kawan, Penang. Other costs incurred to buy the land are professional fees RM250,000 and stamp duties RM50,000. The company also incurred another RM500,000 in levelling and clearing the land. The company intends to develop the land in two phases: Phase I and Phase II. Phase I is taking up 5 hectares for the construction of single-storey house and Phase II is taking up 10 hectares for the construction of bungalow. The balance of 5 hectares is used to develop a common area. Construction work commenced on 1 March 2018 and expected to complete by year 2020. The financial data for 2018 financial year are as follows: Units to be developed Unit sold Selling price per unit Development costs incurred to date Common cost allocated Estimates of development costs to complete REQUIRED: Phase I (single storey). Phase II (bungalow) 100 units 50 units 40 units RM 300,000 RM2,000,000 RM1,636,364 RM4,000,000 30 units RM 500,000 RM3,000,000 RM1,363,636 RM8,000,000 1. Determine percentage of completion for Phase I and II using the cost-to-cost basis (Round up your answer to 1 decimal point). 2. Prepared a partial Statement of Profit and Loss for the year ended 2018 showing the amount of revenue and expenses to be recognized. (Round up your answer to the nearest RM). 3. Assume the company cannot determine the percentage of completion reliably, how should the company recognize its revenue during year 2018?
Expert Answer:
Answer rating: 100% (QA)
1 Percentage of Completion for Phase I single storey Percentage of completion Development costs incurred to date Development costs incurred to date Es... View the full answer
Related Book For
Federal Taxation 2020 Comprehensive
ISBN: 9780135196274
33rd Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Mayala, born and raised in BC, has been familiar with farming since childhood. Her grandparents owned a 5-acre piece of land in a farming town about an hours drive away from the house she had lived...
-
For each equation: a) Tell whether the equation describes a parabola, an ellipse, or a hyperbola. b) State whether the directrix is vertical or horizontal and give its location in relation to the...
-
Prove Fermats Theorem for the case in which f has a local minimum at c.
-
In a Newtons-rings experiment, a plano-convex glass (n = 1.52) lens having diameter 10.0 cm is placed on a flat plate as shown in Figure 37.18a. When 650-nm light is incident normally, 55 bright...
-
When a discovery motion may be necessary?
-
Apply the PBA process for service contracts. A government agency completed an acquisition for landscaping services. The primary purpose of the contract was for mowing the grass around major roadways....
-
Zing Coffee Company produces Columbian coffee in batches of 5,400 pounds. The standard quantity of materials required in the process is 5,400 pounds, which cost $6.00 per pound. Columbian coffee can...
-
For the case The WM. Wrigley Jr. Company: Capital Structure, Valuation, and the Cost of Capital(Darden Case: UVAF1482) please answer the following questions and explain your reasoningwhere...
-
BLG is a limited liability Company taxed as a partnership and has four shareholders each owning 25% of the outstanding Interests (Shares). The shareholders outside basis in their respective Interests...
-
Select 5 compliance & ethics related risks that may affect Target Corp. Read Target's 10-K (focusing on the Risk Factors in section 1A and the Legal Proceedings in section 3), its Proxy Statement,...
-
The market and Stock J have the following probability distributions: Probability r M r J 0.3 16.00 % 18.00 % 0.4 8.00 3.00 0.3 19.00 11.00 The data has been collected in the Microsoft Excel Online...
-
1. A $100 face value 1-YEAR zero-coupon bond trades at $96.30. What is the effective annual rate? 2. Write the formula for a Sharpe Ratio. Do you want to own a portfolio with a high or low Sharpe...
-
COVID-19 has caught many countries off guard, exposing inadequate strategic reserves and governments' inability to organize rapid (substitute) production of critical supplies. In response,...
-
What made Coco Chanel a fashion leader ? Is this she in the performing arts, visual arts, literary arts or politics? 2. How do conformity and individuality relate to being a fashion leader. 3....
-
The current price of Watson Corporation stock is $10. In this year, this stock price can either increase by 20% or decrease by 10% every six months. Watson pays no dividend. The effective quarterly...
-
Refer to Example 9.15. Add the following functionality to this program: Allow the user to enter the cost of a gallon of gas on each trip and use a function, Cost() to calculate the cost of purchasing...
-
In 2019, Henry and his wife, Wendy, made the gifts shown below. All gifts are of present interests. What is Wendy's gift tax payable for 2019 if the couple elects gift splitting and Wendy's previous...
-
Leroy owned a truck used in his trade or business that cost $50,000 and had an adjusted basis of $34,000 in 2016 when the truck was exchanged for a new truck that was like-kind property with a FMV of...
-
Randall and Dianne Wall live in St. Louis, Missouri. Randall and Dianne are each 30 years old, neither smokes, and they have no children or other dependents. Randall is attending law school full time...
-
True or False. Vibration can cause structural and mechanical failures.
-
A car moving on a rough road, in the form of a sinusoidal surface, is modeled as a springmass system, as shown in Fig. 9.41. The sinusoidal surface has a wave length of \(5 \mathrm{~m}\) and an...
-
Name some sources of industrial vibration.
Study smarter with the SolutionInn App