audit on ppe, just answer numbers 2-5. i have provided the choices.
Course Her X *Course Her X * 15809644 ( X * Course Her X > Debby's po X > The overall x > The building X * Search Rest X AP Problen X + X -> O A https://www.scribd.com/doc/311294982/AP-Problems-2015 G & SCRIBD Search Q EN v 1 Upload Saved Save 14 of 20 2 Q Q Search document Embed Share 1. Land A. P7,909,000 B. P8,700,000 C. P9,060,000 D. P10,909,000 2. Building A. P5,670,000 B. P6,223,600 C. P3,223,600 D. P5,310,000 3. Machinery A. P1,227,300 B. P1,098,000 C. P1,335,300 D. P990,000 Calculate the 2016 depreciation expense for each of the following properties. 4. Building A. P238,500 B. P311,180 C. P283,500 D. P265,500 5. Machinery A. P180,000 B. P198,000 C. P219,600 D. P227,460 X This document is... Useful Not useful Check out these free titles Type here to search 52 W A D ( 4) ENG 7:43 pm 06/01/202155511 3...... HOMEWDRK Answer the following independent audit cases on a separate sheet of paper. Show your computations. Audit Case 1 (5 items I 5 points) DEBBY CORP., a manufacturer of computer parts, has been experiencing growth in the demand for its products over the last several years. This prompted the company to obtain additional manufacturing facilities. A real estate firm located an available factory near Debbi/s production facility, and Debby agreed to purchase the factory and used machinery from Que Company on October 1, 201A. Renovations were necessary to convert the factory for Debby's manufacturing use. The terms of the agreement required Debby to pay Que P1,500,000 when renovations started on January 1, 2023, with the balance to be paid as renovations were completed. The overall purchase price for the factory and machinery was P12,000,000. The building renovations were contracted to Malibay Construction Company at P3,000,000. The payments made as renovations progressed during 2023 are shown below. The factory was placed in service on January 1, 202C. Que Malibay January 1 P1,500,000 April 1 2,700,000 P900,000 October 1 3,300,000 900,000 December31 4,500,000 1,200,000 P12,000,000 P3,000,000 On January 1, 2028, Debby obtained a 2-year, P3 million loan with a 12% interest rate to nance the renovation of the acquired factory. This is Debby's only outstanding loan during 2023. Debby's policy regarding purchases of this nature is to use the appraisal value of the land for book purposes and prorate the balance of the purchase price over the remaining items. The building had originally cost Que P9,000,000 and had a net book value of P1,500,000, while the machinery originally cost P3,750,000 and had a net book value of P1,200,000 on the date of sale. The land was recorded on Que's books at P1,200,000. The following values were determined based on appraisal conducted by Independent appraisers at the time of acquisition: Land P8,?00,000 Building 3,150,000 Machinery 1,350,000 Gin G. Neer, Debby's chief engineer, estimated that the renovated plant would be used for 15 years, with an estimated residual value of P900,000. Neer estimated that the productive machinery would have a remaining useful life of five (5} years and a residual value of P90,000. Debby's depreciation policy is to apply the 200% declining balance method for machinery and the 150% declining balance method for the plant. One-half year's depreciation is taken in the year the plant is placed in service, and the one-half (1/2} year is allowed when the property is di5posed of or retired. Required: Determine the amounts to be recorded on the books of Debby Corp. as of December 31, 2028, for each of the following properties: 1. Land 2. Building 3. Machinery 07 Homework 1 *Properly ofSTl' Page 1 of 2 4er m... Calculate the 202C depreciation expense for each of the following properties. 4. Building - Depreciation Expense 5. Machinery- Depreciation Expense
