are incurred by the company on an annual basis. What should be the carrying value of the investment at the end of the year 2019? *
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- At the beginning of the year 2019, Trunk Company has an investment property acquired at a cost of P1,700,000 that is to be accounted under the cost model. Depreciation of 10% is recognized annually and periodic continuing repair costs of P3,500 per year as well as property tax of P2,700 are incurred by the company on an annual basis. What should be the carrying value of the investment at the end of the year 2019?At the beginning of the year 2019, Trunk Company has an investment property acquired at a cost of P1,700,000 that is to be accounted under the cost model. Depreciation of 10% is recognized annually and periodic continuing repair costs of P3,500 per year as well as property tax of P2,700 are incurred by the company on an annual basis. What should be the carrying value of the investment at the end of the year 2019? On April 1, 2019, Red Company purchased as a trading security a P1,000,000 face value 8% bond for P920,000 plus brokerage of P12,000 and accrued interest. The bonds mature on January 1, 2023 and pay interest annually on January 1. On December 31, 2019, the bonds had a market value of P965,000. For the year ending December 31, 2019 income statement, what amount should Red report as Unrealized gain or loss from trading securities? (Do not include any parenthesis, just amount without period or comma) Dahlia Company purchased a P2,000,000 12% face value bonds, 10…On January 1, 2020, ERNSTCo. finished constructing an edifice that will be accounted for as an investment property using the cost model.Total construction cost was P35,000,000. The entity estimates that the asset will be useful for 40 years. Continuing repairs on the building amount to P60,000 every year, and annual real property tax to be paid by the company is P110,000. Determine the following: 1.Annual expenses incurred by ERNSTin relation to its investment property. 2.Carrying amountof the asset at the end of 2022.
- Under the accrual basis rental income of EL Company for the calendar year 2020 is P600,000. Additional information regarding rental income are presented below: Unearned rental income, January 1, 2020 P50,000 Unearned rental income, December 31, 2020 75,000 Accrued rental income, January 1, 2020 30,000 Accrued rental income, December 31, 2020 40,000 Under the cash basis, how much rental income should be reported by EL Company in year 2020? Group of answer choices d. P655,000 c. P625,000 b. P615,000 a. P585,000On January 1, 2021, Abba Company sold a piece of equipment to Bacus Company with a cost of P3,500,000 and accumulated depreciation of P600,000 in exchange for an annual 10% interest-bearing note, P4,000,000. Bacus is required to make four equal annual payments of principal plus interest. What is the total proceeds for the year 2023?On January 1, 2019, the Business Info Company had capitalized costs of P6,000,000 for a new computer software product with an estimated useful life of 4 years. Sales for the software product during were P2,400,000 in 2019 and P4,200,000 in 2020. The total sales of the software over the economic life are expected to be P12,000,000. Question: What amount of amortization of computer software should Business Info Company record for the year 2020? а. РО P1,500,000 P1,800,000 P2,100,000 b. C. d.
- On January 1, 2021, Takemichi Company sold a piece of equipment to Hina Company with a cost of P3,400,000 and accumulated depreciation of P600,000 in exchange for an annual 8% interest-bearing note, P4,000,000. Hina company is required to make five annual payments of principal plus interest. Questions: What is the interest income for the year 2024? How much is the total proceeds of Takemichi for the year 2025?On July 1, 2020, Manuel Corporation purchased machinery worth P 8,000,000. Terms: P 500,000 down payment, the balance on three equal annual payments every July 1 of each year. The cash price of the machinery is P 6,000,000. A promissory note is issued for the installment balance. Required: 1. What would be the journal entry to record the acquisition of machinery? 2. What would be the journal entries to record the amortization at December 31, 2020? 3. What is the carrying amount of machinery at December 31, 2020?lab Company’s accounting policy with respect to investment properties is to measure them at fair value at the end of each reporting period. One of its investment properties was measured at P8,000,000 on December 31, 2020.The property had been acquired on January 1, 2020 for a total of P7,600,000, made up of P6,900,000 paid to the vendor. P300,000 paid to the local authority as a property transfer tax and P400,000 paid to professional advisers. The useful life of the property is 40 years. What is the gain to be recognized in profit or loss for the year ended December 31, 2020 in respect of the investment property? * P400,000 P590,000 P700,000 P800,000 answer not given
- The Slow company has started the construction of an asset on September 1, 2019and finished it on November 1, 2020. The weighted average expenditure ascalculated at the end of the construction in 2020 was: $725,456. In 2020, thecomp had the following outstanding indirect debts:DebtOne-year loan payable taken out on March 31, 2019Two-year note payable Faken out on June 1, 2020Amount$67,000$120,000Annual rate5%7%Assuming there is no direct debt related to this construction, the interest that will becapitalized on indirect debt in 2020 is (calculate ratios to 2 decimal places):a) $47,980b) $45,130Oc) $7,133d) $5,737On January 1, 2020, South Company purchased five delivery trucks for P 10,000,000 from West Company.South Company gave West Company 1 year non-interest bearing note (stated interest/nominal interest rate is 0) payable on January 1, 2021. At the date of purchase, the interest rate for this type of purchase is 13%. Round present value factors to four decimal places. Prepare an amortization table. Required: What is the value of the Delivery Truck that shall be reflected in the statement of financial position on January 1, 2020? ______________________ What is the amount of Notes Payable that shall be reflected in the statement of financial position on January 1, 2020?______________On January 1, 2021, Anna Company sold a piece of equipment to Banana Company with a cost of P3,500,000 and accumulated depreciation of P600,000 in exchange for an annual 10% interest-bearing note, P3,000,000. Banana is required to make four equal annual payments of principal plus interest. What is the interest income for the year 2022?
