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1. In preparing the 2021 draft financial statement of ALICE Company, the Land account of P8,000,000 to be reported under Property, Plant and Equipment included
1. In preparing the 2021 draft financial statement of ALICE Company, the Land account of P8,000,000 to be reported under Property, Plant and Equipment included the following items: P400,000 held for long-term capital appreciation P250,000 held for sale in the ordinary course of business P275,000 grazing ground for cattle P300,000 held for a currently undetermined future use The correct amount reported under the Land account included in the Property, Plant & Equipment section is 2. In preparing the 2021 draft financial statement of BETTY REALTY, the Building account of P5,000,000 to be reported under Property, Plant and Equipment included the following items: P600,000 in which management is developing for immediate sale P350,000 being developed as an investment property P450,000 currently being redeveloped for continued future use as an investment property P175,000 occupied by employees (rentals at market rates) P200,000 fair value of a building constructed by BLADE Company to be used as substation by BETTY Realty (for the use of BAE Realty homeowners). The correct amount reported under the Building account included in the Property, Plant & Equipment section is
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