Reference no: EM132772364
UFC Inc. completed the construction of a building on January 1, 2008 for a total cost of P100 million which could be purchased at a fair value of P103 million. The building is estimated to be economically useful for 25 years. The building was constructed for the purpose of earning rentals under operating leases. The tenants began occupying the building after its completion. The company opted to use the fair value model to measure the building. An independent valuation expert was used by the company to estimate the fair value of the building on an annual basis. According to the expert the fair values of the building at the end of 2008, 2009 and 2010 were P105 million, P120 million and P118 million, respectively. On January 1,2011, the building was sold for P110 million.
Required: Based on the result of your audit, determine the following:
Problem 1. Amount to be recognized initially for the building on January 1,2008
a. 103M
b. 100M
c. 120M
d. 118M
Problem 2. Amount to be recognized in the Profit/(loss) as a result of fair value changes on December 31,2009
a. 15M
b. (2M)
c. 5M
d. 2M
Problem 3. Depreciation expense on December 31,2009
a. 4M
b. 2.5M
c. 2M
d. zero
Problem 4. Realized gain/(loss) on the disposal of building on January 1,2011
a. 3M
b. (5M)
c. (8M)
d. 1M
Problem 5. Carrying amount of Building on December 31,2010 if UFC use the cost model
a. 88M
b. 105M
c. 120M
d. 118M
|
What are insights you gained by using various instruments
: Go online and conduct a search for a free assessment test such as the ACE Study, Strong, the Beck Depression Inventory, or something similar.
|
|
Discuss the importance of risk assessment
: Identify and discuss the importance of risk assessment to the organization's security framework? Discuss the five layers of risk.
|
|
Research frequency-division multiplexing
: Research frequency-division multiplexing. Identify three everyday examples of FDM use.
|
|
Prepare a differential analysis on May
: Prepare a differential analysis on May 30 as to whether Casper Company should lease (Alternative 1) or sell (Alternative 2) the office space
|
|
Determine the amount to be recognized initially for building
: Determine the Amount to be recognized initially for the building on January 1,2008 and Depreciation expense on December 31,2009
|
|
What might be happening with simon
: Simon, a 16-year-old male, has always performed adequately in school. This semester his math scores dropped from Bs to Fs, but his other grades have remained.
|
|
Social networking site
: Google+ is a social networking site that lets users define and manage various groups of people and how they interact with them.
|
|
How much is the capital balance of a after retirment of b
: B Decides to retire the partnership pays B 180,000 in settlement of his partnership interest. How much is the capital balance of A after the retirment of B?
|
|
Software-based security
: Do you think there are security issues with hardware too, or software-based security (anti-malware, monitoring, etc.) is enough?
|