1.Glory Corporation's "Machinery and Equipment" account as of December 31, 2003 is analyzed as follows:

CostAccumulated Depreciation

Acquired in December 20004,000,0001,600,000

Acquired in December 2002 1,000,000200,000

Pertinent index numbers at the end of each year are:

hyperinflationary balance sheet prepared as of December 31, 2003 should include machinery and equipment net of accumulated depreciation of:

(a) P2,016,000(b) P7,000,000(c) P3,696,000(d) P2,520,000

2.East Company prepared the balance sheet shown below in accordance with GAAP on December 31, 2003:

Cash P 480,000

Receivables Inventory 560,000

Inventory 680,000

Property, plant and equipment, net 1,340,000

P3,060,000

Payables P1,160,000

Common stock 1,200,000

Retained earnings 700,000

P3,060,000

The cash, receivables, and payables originated when the index was 105. The inventory and plant assets were acquired when the index was 99. The common stock was issued when the index was 90. The index number on December 31, 2003 was 108.9.

What is the balance of retained earnings restated to end-of-year constant peso?

(a) P902,000 (b) P645,543 (c) P650,000 (d) P700,000

3.Bumper Compaay has three lines of businass, eacH of which was determneD to be reportable segment. Bumper Company sales aggregated P15,000,000 in 2014 of which segment #1 contributed 40%.Traceable costs were P3,500,000 for September to November out of a total of P10,000,000 for the company as a whole. For internal reporting, Bumper alliocates common costs of P3,000,000 based on the ratio of a segment's income before common costs.

In its 2014 financial statements, how much should company report as operating profit for segment no. 1?

(a) P750,000 (b) P1,000,000(c) P1,500,000(d) P2,000,000