Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

70% 850,000 43 13. As of December 31, 2020, Cocoa Corporation reported the following items in its balance sheet: Cash Php 240,000 Receivables 520,000 Inventory

image text in transcribed

70% 850,000 43 13. As of December 31, 2020, Cocoa Corporation reported the following items in its balance sheet: Cash Php 240,000 Receivables 520,000 Inventory 350,000 Property and plant 125% 3,000,000 Equipment Accounts payable 400,000 Short-term notes payable 7 500,000 Long-term debt 1,000,000 Weighted average of 250,000 outstanding shares in 2020 Cocoa Corporation contracted with a third-party appraiser to determine how much is the replacement cost of its assets. Based on the report of the appraiser, the property and plant has replacement cost of 125% of its reported value. On the other hand, the equipment only commands replacement cost of 70% of its value. According to the appraiser, the equipment was designed using an old technology, thus, the lower replacement cost. Other assets and liabilities are valued fairly How much is the non-current assets reflected in the books of Cocoa Corporation as of December 31, 2020? a. Php4,960,000 b. Php3,850,000 c. Php2,850,000 d. Php2,150,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit And Accounting Guide State And Local Governments

Authors: AICPA

1st Edition

1945498587, 978-1945498589

More Books

Students also viewed these Accounting questions

Question

8. Describe how cultural spaces are formed.

Answered: 1 week ago