{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-28T04:47:40-04:00", "answer_date": "2024-06-28 04:47:40", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4242878", "url": "\/study-help\/questions\/1-precious-company-acquired-a-building-on-january-1-2010-4242878", "question_creation_date_js": "2024-06-28T04:47:40-04:00", "question_creation_date": "Jun 28, 2024 04:47 AM", "meta_title": "[Solved] 1. Precious Company acquired a building o | SolutionInn", "meta_description": "Answer of - 1. Precious Company acquired a building on January 1, 2010 at a cost of P20,000,000. The building has a useful life of | SolutionInn", "meta_keywords": "1,precious,company,acquired,building,january,2010,cost,p20,000,000,life,6,years", "question_title_h1": "1. Precious Company acquired a building on January 1, 2010 at a cost of P20,000,000. The building has a useful life of 6 years and", "question_title": "1. Precious Company acquired a building on January 1, 2010 at a", "question_title_for_js_snippet": "1 Precious Company acquired a building on January 1, 2010 at a cost of P20,000,000 The building has a useful life of 6 years and residual value of P2,000,000 The building was revalued on January 1, 2013 and the revaluation revealed replacement cost of P30,000,000, residual value of P4,000,000 and revised useful life of 8 years from the date of acquisition The income tax rate is 30 What is the revaluation surplus on December 31, 2013 a 6,000,000 b 4,200,000 C 2,800,000 d 3,360,000 2 ON January 1, 2013, Jane Company showed land with carrying amount of P10,000,000 and building with cost of P6,000,000 and accumulated depreciation of P18,000,000 The land and building were revalued on the same date and revealed the fair value of land at P15,000,000 and the building P70,000,000 The original useful life of the building is 20 years and depreciation is computed on the straight line The income tax rate is 30 What is the revaluation surplus on December 31, 2013 a 33,000,000 b 23,100,000 c 21,450,000 d 21,700,000 3 Neptune Company purchased four convenience store buildings on January 1, 2007 for a total of P25,000,000 The buildings have been depreciated using the straight line method with a 20 year useful life and 10 residual value On January 1, 2013, the entity has converted the buildings into a hotel and restaurant Because of the change in the use of the buildings, the entity is evaluating the buildings for possible impairment The entity estimated that the buildings have a remaining useful life of 10 years, the residual value will be zero and the net cash inflow from the buildings will total P2,000,000 per year The fair value less cost of disposal of the four buildings is P10,000,000 The appropriate discount rate is 8 The present value of an ordinary annuity of 1 at 8 for 10 periods is 6 71 What is the impairment loss that should be recognized for 2013 a 8,250,000 4,830,000 C 5,000,000 d", "question_description": "
\"image<\/div><\/div><\/div> 1. Precious Company acquired a building on January 1, 2010 at a cost of P20,000,000. The building has a useful life of 6 years and residual value of P2,000,000. The building was revalued on January 1, 2013 and the revaluation revealed replacement cost of P30,000,000, residual value of P4,000,000 and revised useful life of 8 years from the date of acquisition. The income tax rate is 30%. What is the revaluation surplus on December 31, 2013? a. 6,000,000 b. 4,200,000 C. 2,800,000 d. 3,360,000 2. ON January 1, 2013, Jane Company showed land with carrying amount of P10,000,000 and building with cost of P6,000,000 and accumulated depreciation of P18,000,000. The land and building were revalued on the same date and revealed the fair value of land at P15,000,000 and the building P70,000,000. The original useful life of the building is 20 years and depreciation is computed on the straight line. The income tax rate is 30%. What is the revaluation surplus on December 31, 2013? a. 33,000,000 b. 23,100,000 c. 21,450,000 d. 21,700,000 3. Neptune Company purchased four convenience store buildings on January 1, 2007 for a total of P25,000,000. The buildings have been depreciated using the straight line method with a 20-year useful life and 10% residual value. On January 1, 2013, the entity has converted the buildings into a hotel and restaurant. Because of the change in the use of the buildings, the entity is evaluating the buildings for possible impairment. The entity estimated that the buildings have a remaining useful life of 10 years, the residual value will be zero and the net cash inflow from the buildings will total P2,000,000 per year. The fair value less cost of disposal of the four buildings is P10,000,000. The appropriate discount rate is 8%. The present value of an ordinary annuity of 1 at 8% for 10 periods is 6.71. What is the impairment loss that should be recognized for 2013? a. 8,250,000 . 4,830,000 C. 5,000,000 d", "transcribed_text": "", "related_book": { "title": "Auditing and Assurance Services", "isbn": "978-1259573286, 1259573281, 978-1260152166", "edition": "7th edition", "authors": "Timothy Louwers, Allen Blay, David Sinason, Jerry Strawser, Jay Thibodeau", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1263.jpg", "uri": "\/textbooks\/auditing-and-assurance-services-7th-edition-1263", "see_more_uri": "" }, "free_related_book": { "isbn": "9811667489", "uri": "\/textbooks\/toxicology-at-environmentally-relevant-concentrations-in-caenorhabditis-elegans-1st-edition-978-9811667480-266495", "name": "Toxicology At Environmentally Relevant Concentrations In Caenorhabditis Elegans", "edition": "1st Edition" }, "question_posted": "2024-06-28 04:47:40", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-13", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/you-have-been-engaged-to-audit-the-financial-statements-of-240029", "description": "You have been engaged to audit the financial statements of Hardy Hardware Distributors Inc., as of December 31. 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