Reference no: EM132977029

Questions -

Q1. Perry Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 2011, included the following expense accounts: Accounting and legal fees P140,000 Advertising 120,000 Freight-out 75,000Interest 60,000Loss on sale of long-term investments 30,000Officers' salaries 180,000Rent for office space 180,000Sales salaries and commissions 110,000One-half of the rented premises is occupied by the sales department. How much of the expenses listed above should be included in Perry's selling expenses for 2011?

a. P230,000

b. P305,000

c. P320,000

d. P395,000

Q2. Kohler Company owns the following investments:Trading securities (fair value) P 60,000 Available-for-sale securities (fair value) 35,000 Held-to-maturity securities (amortized cost) 47,000 Kohler will report securities in its long-term investments section of

a. exactly P95,000.

b. exactly P107,000.

c. exactly P142,000.

d. P82,000 or an amount less than P82,000, depending on the circumstances.

Q3. VISAGE APPEARANCE Co. is committed to a plan to sell its headquarters building and has initiated actions to locate a buyer. As of this date, the building has a carrying amount of 5,000,000, a fair value of 6,000,000 and estimated costs to sell of 200,000. VISAGE APPEARANCE Co. is committed to a plan to sell its headquarters building and has initiated actions to locate a buyer. As of this date, the building has a carrying amount of 5,000,000, a fair value of 6,000,000 and estimated costs to sell of 200,000. VISAGE Co. has an intention to transfer ownership of a building to a buyer after it vacates the building. How should VISAGE Co. classify the headquarters building?

a. Included under property, plant and equipment at 5,000,000.

b. Included under property, plant and equipment at 5,800,000.

c. Classified as held for sale at 5,000,000.

d. Classified as held for sale at 5,800,000.