Reference no: EM132943700

Simple Company reported the following information in relation to land:

• The entity purchased land on January 1, 2020 for Php500,000 cash On December 31, 2020,the land has a current replacement cost of Php700,000
• On December 31 2021,the land has a current replacement cost of Php750 000
• The entity sold half of the and for Php500,000 cash on December 31, 2022 On this date the current replacement cost of the entire land is Php800,000

Problem 1: What is the gain on sale of land to be reported in 2022?

Option 1: Php 100,000

Option 2: Php 150,000

Option 3: Php 125,000

Option 4: Php 250,000

Option 5: None of the above

Problem 2: What is the realized holding gain to be reported in 2020?

Option 1: Php 200,000

Option 2: Php 700,000

Option 3: Php 500,000

Option 4: Php 0

Option 5: None of the above

Problem 3: What s the realized holding gain to be reported in 2022?

Option 1: 25000

Option 2: 50000

Option 3: 300000

Option 4: 150000

Option 5: None of the above

Problem 4: What is the UNrealized holding gain to be reported in 2022?

Option 1: Php25,000

Option 2: Php50,000

Option 3: Php300,000

Option 4: Php150.000

Option 5: None of the above