Consider each of the items below. Place the proper letter in the blank space provided to indicate the nature of the account or accounts to be increased when recording each transaction using the preferred accounting treatment. Prepayments should be recorded in the statement of financial position accounts. Disregard income tax considerations unless instructed otherwise. a. asset(s) only b. expense only c. asset(s) and expense 1. A motor engine in one of Speedy Company trucks was overhauled at a cost of P60,000. It is expected that this will extend the life of the truck for two years. 2. Machinery which had originally cost P260,000 was relocated at a cost of P30,000, including installation, to a branch where it would be used more. 3. Mabuhay Corporation recently purchased land and two buildings. The P72,000 cost of demolishing the smaller building, which has an appraisal value of P356,200, is recorded. 4. Maharlika Company exchanged its old machine with a carrying amount of P18,000 plus cash of P42,000 for a new one which had a fair value of P54,000. 5. Paul Silys and Timothy Cruz, maintenance repair workers, spent three days unloading and setting up a new P40,000 precision machine in the plant. The wages earned by them for P3,300 in this three-day period are recorded. 6. On 1 July, the Filipino Corporation installed a water tank system at a cost of P130,000. The tires on a company truck were replaced to meet annual registration requirements. 8. A real property tax is paid for land one year after acquisition. 9. Replacement of a minor broken part on factory equipment 10. Improvement to a machine that increased its fair value and its production capacity by 25% without extending its useful life. 7