1. ABC Corporation owns a building that has an area of 5,000 square meters. The revaluation of this asset was made based on the following:

Particulars	Square Meters	Replacement Cost per Square Meter
Walls	300	4500
Office Floor Space	800	3000
Pipes, Wirings, AC Area	400	5600

ABC has depreciated the building for 25% of its life to a salvage value of P500,000. What is the sound value of this building?

a. P1,497,500 b. P1,587,500 c. 1,372,500 d. 1,462,500

2. ABC Corporation has the following information to estimate its liquidation value. Cash = 50,000 Noncash Assets, Book Value = 100,000 Noncash Assets, Selling Price =140,000 Cost to Dispose (40% chance) =10,000 Cost to Dispose (60% chance) =25,000 Liabilities, Book Value = 60,000 Liquidation cost to be incurred = 5,000 Based on the information above, how much is the expected net liquidation value of the corporation?

a. 90,000.00 b. 109,000.00 c. 125,000.00 d. 106,000.00

3. A call option for a P5,000,000-face value bond has a strike price of 101. If the market value of the bonds is P5,300,0000, then the option would be

a. Out-the-money by P250,000

b. In-the-money by P250,000

c. Out-the-money by P50,000

d. In-the-money by P50,000