Professional Documents
Culture Documents
Property, Plant and Equipment
Property, Plant and Equipment
Property, Plant and Equipment
Appraised value
* Land 2,000,000 X 5,400,000 = 2,160,000
Building 3,000,000 = 3,240,000
5,000,000
*Building 9,600,000 X .60 = 5,760,000
Land 9,600,000 x. 40 = 3,840,000
*25,000 shares x P120(Market price) = 3,000,000
Answer: C 9,000,000; C 9,000,000
Note: Don't forget the order when acquiring assets.
Problem 14-2
Answer: B
Problem 14-3
• Same as last problem
Eagle
Land P2,800,000
Cash 1,000,000
Cost P3,800,000
Answer: D
Problem 14-6
• When an exchange lacks commercial substance, use the
carrying amount of the asset given + cash payment
Yola Company
CA of oil inventory 1,000,000
Cash payment 300,000
Cost of oil inventory P1,300,000
Answer: B
Problem 14-7
Bronze
FV of the truck P500,000
Cash payment 600,000
Cost of the land P1,100,000
Answer: A
Problem 14-8
• Whether discounts were taken or not, it should be
deducted
Materials P600,000
Direct labor 500,000
Overhead (P1,200,000 x 15,000 units
50,000 units) 360,000
Cost of office equipment P1,460,000
Answer: C
Problem 14-10
1. D
2. C
3. D
4. D
5. D
Problem 14-11
1. B
2. A
3. A
4. C
5. C
Problem 14-12
1. D
2. C
3. D
4. B
Problem 14-13
1. A
2. C
3. D
4. D
5. D
Problem 14-14
1. C
2. D
3. D
4. D
5. D
Problem 14-15
1. D
2. D
3. D
4. A
5. D
6. A
7. B
8. B
9. C
10.D