Reference no: EM132718176

Question - The following transactions of the COVID Company occurred during 2020:

1. The company acquired a tract of land in exchange for 10,000 shares of P10 par value ordinary equity share. The stock was traded on the PSE at P25 on the date of exchange. The land had a book value on the selling company's records of P50,000, and it was believed to be worth "anything up to P300,000."

2. An engine on a truck was replaced. The truck originally cost P100,000 three years ago and was being depreciated at P20,000 per year. The engine cost P10,000 to replace.

3. The company acquired a tract of land that was believed to have mineral deposits by issuing 5,000 preference shares, P50 par value. The preference shares were rarely traded. The last transaction was 2 months earlier, when 500 shares were sold at P75 per share. The owner of the land was willing to accept cast of P450,000 and an appraisal had shown a value of P500,000.

4. The company purchased a machine with a list price of P85,000 by issuing a 2-year P100,000 non-interest bearing note when the market rate of interest was 10%.

Required - List down the PPEs above, and the corresponding total amount that should be reported in the financial statement of COVID Company.