Albedo Company made the following acquisitions during the year:

Purchased for P5,400,000 a warehouse building and the land on which is located. The land had an appraised value (fair market value) of P2,000,000 and original cost of P1,400,000. The building had an appraised value of P3,000,000 and original cost of P2,800,000.

Purchased an office building and the land on which it is located for P7,500,000 cash and assumed an existing P2,500,000 mortgage. For realty tax purposes, the property is assessed at P9,600,000, 60% of which is allocated to the building.

What is the amount should be reported as total cost of land and building, respectively?

Albedo Company made the following acquisitions during the year:

Purchased for P5,400,000 a warehouse building and the land on which is located. The land had an appraised value (fair market value) of P2,000,000 and original cost of P1,400,000. The building had an appraised value of P3,000,000 and original cost of P2,800,000.

Purchased an office building and the land on which it is located for P7,500,000 cash and assumed an existing P2,500,000 mortgage. For realty tax purposes, the property is assessed at P9,600,000, 60% of which is allocated to the building.

What is the amount should be reported as total cost of land and building, respectively?

P6,160,000 and P9,240,000

P6,000,000 and P9,000,000

P5,840,000 and P8,760,000

P5,000,000 and P7,760,000

Question at position 35

35

1 point

Question 35 is unpinned. Click to pin.

Question at position 35

1. Chongyun Company incurred the following costs during the current year:

Tax in arrears on land	P50,000
Payment for the land	1,000,000
Architect fees	230,000
Contract price for factory building	5,000,000
Safety fence around construction site	35,000
Safety inspection on building	30,000
Removal of safety fence after the completion of building	20,000
New fence surrounding the factory	80,000
Driveway, parking bay, and safety lighting	550,000
Trees, shrubs, and other landscaping	200,000

What amount should be recorded as cost of land improvements?

1. Chongyun Company incurred the following costs during the current year:

Tax in arrears on land	P50,000
Payment for the land	1,000,000
Architect fees	230,000
Contract price for factory building	5,000,000
Safety fence around construction site	35,000
Safety inspection on building	30,000
Removal of safety fence after the completion of building	20,000
New fence surrounding the factory	80,000
Driveway, parking bay, and safety lighting	550,000
Trees, shrubs, and other landscaping	200,000

What amount should be recorded as cost of land improvements?

P630,000

P750,000

P280,000

P830,000

Question at position 36

36

1 point

Question 36 is unpinned. Click to pin.

Question at position 36

Expensed or Capitalized: Cost of employee benefits arising directly from the acquisition of property, plant, and equipment.

Expensed or Capitalized: Cost of employee benefits arising directly from the acquisition of property, plant, and equipment.

Capitalized

Expensed

Question at position 37

37

1 point

Question 37 is unpinned. Click to pin.

Question at position 37

1. The recognition criteria for an intangible asset include which condition?

1. The recognition criteria for an intangible asset include which condition?

It Is probable that future economic benefit will arise from use and the cost can be reliably measured.

It is probable that future economic benefit will arise.

The cost can be measured reliably.

The intangible asset must be measured at cost.