Reference no: EM132860288
Question - The PPE section of Matagumpay Corporation's statement of financial position on December 31, 2019 included the following items:
Land 2,800,000
Land Improvements 40,000
Building 3,600,000
Machinery and Equipment 3,920,000
During 2020, the following data were available to you upon your analysis of the accounts:
Cash paid on purchase of land 10,000,000
Mortgage assumed on the land bought, including 16% interest 16,000,000
Realtor's commission 1,200,000
Legal fees, realty taxes and documentation expenses 200,000
Cost fencing the property 440,000
Amount paid to contractor for the building constructed 8,000,000
Building permit fees 80,000
Excavation fees 200,000
Architect fees 200,000
Invoice cost of machinery 8,000,000
Freight, unloading and delivery charges 240,000
Custom duties and other charges 560,000
Allowances, hotel accommodations, etc, paid to foreign technicians during installations and test run of machines 1,600,000
Royalty payment on machines purchased (based on units produced and sold) 480,000
Required - Based on the above information and the result of your audit, compute for the following as of December 31, 2020
-Land
-Land Improvements
-Building
-Machinery and equipment
-Total depreciable property