Reference no: EM132806948

Question 1 - John Mayer Company purchased land, land improvements and building from Bruno Mars Company for P14.4M and from Sam Smith Company furniture and equipment for P18.6M. The total cash outlay for the transactions amounted to P33M. The appraised values of the assets are as follows: Building - P5M; Equipment - P3M; Furniture - P1M; Land - P13.5M; Land Improvements - P1.5M. The allocated cost of the building is?

Question 2 - An old cooler with a recorded cost of P150,000 and accumulated depreciation of P140,000 was sold for P4,000. A new cooler with marked price of P200,000 was purchased on February 10, 2020. Freight charge of P3,000 and installation cost of P6,000 were paid. What is the cost of the new cooler?

Question 3 - On April 1, 2020, Elvis Presley Company bought a new equipment for P800,000. The equipment has an estimated salvage value of P20,000 and useful life of 12 years. Depreciation is computed using the sum-of-the-years digits method. How much is the amount of depreciation for 2020?

Question 4 - On April 1, 2020, Elvis Presley Company bought a new equipment for P800,000. The equipment has an estimated salvage value of P20,000 and useful life of 12 years. Depreciation is computed using the sum-of-the-years digits method. What is the carrying value of this asset in the statement of financial position at December 31, 2021?

Question 5 - The following expenditures were incurred by John Legend Company in 2020.

Cost of land, 4.500.000

Expenses of land survey, 30,000

Expenses for search of land title, 6,000

Building permit fee, 10,000

Temporary building to house materials and construction workers, 50,000

Demolition of old building, 40,000

Payments to tenants to vacate old building, 60,000

Payments to construction workers for injuries sustained, 85,000

Interest on temporary loan for construction, 90,000

Cost of paving parking area adjoining building, 45,000

Excavation expenses for foundation of building, 150,000

Cost of construction, 9,800,000

Using the interpretations of the PIC, what is the cost of land?