d. 1,000,000 loss 5. Villena Company's machinery and equipment account on December 31, 2015 is analyzed as follows: Cost Accumulated Depreciation Acquired in December 2012 4,000,000 1,600,000 Acquired in December 2013 1,000,000 200,000 Pertinent index numbers at the end of each year are: 2012 120 2013 125 2014 350 What should be reported in a hyperinflationary statement of financial position prepared on December 31, 2014 as the carrying amount of machinery and equipment? a. 8,960,000 b. 7,800,000 c. 3,200,000 d. 9,240,000 Assessment 2 On December 31, 2018. Tito Co. signed a 4 year noncancelable lease for a new machine requiring P 120, 000 annual payments beginning December 31,2018. The machine has a useful life of 8 years, with no salvage value. The rate implicit on the lease is 12%. Tito has a bargain purchase option amounting to P20, 000. It is certain that the company will exercise this option. The fair value of the machine at the inception of the lease amounted P447,794. 1. How much is the amount to be capitalized as machinery (leases asset) on December 31, 2018? a. 420,926 b. 474,660 c. 480,000 d. 500,000d. P200,000 loss 2. The following liabilities appear on the statement of financial position of Malto Company: Deferred tax liability 400,000 Estimated warranty liability 200,000 Advances from customers 1,200,000 Unearned revenue 300,000 Finance lease liability 4,000,000 Bonds payable 3,000,000 Accrued payable 500,000 Accounts payable 1,000,000 In preparing financial statements in a hyperinflationary economy, how much should the entity classify as monetary liabilities? a. 8,900,000 b. 9,700,000 c. 8,500,000 d. 4,500,000 3. Navarro Company showed the following information for purposes of preparing hyperinflationary financial statements on December 31, 2015: Note receivable (note was received on October 1, 2014) 2,400,000 Price index numbers October 1, 2014 80 January 1, 2015 100 December 31, 2015 400 Average for 2015 250Assessment 2 On December 31, 2018. Tim Co. signed a 4 year noncanoelable lease for a new machine requiring P 12D. annual payments beginning December 31.2013. The machine has a useful life of 3 years. with no salvage value. The rate implicit on the lease is 12%. Tito has a bargain purchase option amounting to P20, 000. It is certain that the company will exercise this option. The fair value of the machine at the inception of the lease amounted P44?.?94. 1. How much is the amount to be capitalized as machinery {leases asset) on December 31, 2013? a. 42D.926 b. 4?4.660 c. ABDJJDO d. 5D. 2. How much is the interest expense in 2D19? a. Nil c. 5?. b. 36.111 d. cocoa 3. How much is the lease-related liability to be shown as current in the statement of financial position on December 31,2018? a. 300,926 b. 217,037 c. 83,889 d. 36, 111 4. How much is the lease-related liability to be shown as non-current in the statement of financial position on December 31,2018? a. 300,926 b. 217,037 c. 83,889 d. 36,111 Use the following data for questions 5 and 6: Information with respect to cost of goods sold of Maghari Company for 2015 is as follows: Historical cost Units Inventory, January 1 1,060,000 20,000 Purchases during the year 5,580,000 90,000 Goods available for sale 6,640,000 110,000 Inventory, December 31 (2,520,000) (40,000) Cost of goods sold 4,120,000 70,000 Maghari estimates that the current cost per unit of inventory was P58 on January 1, 2015 and P72 on December 31, 2015. 5. In the income statement for 2015 restated to current cost, what should be reported as cost of goods sold? a. 4,550,000 b. 4,410,000 C. 4,060,000 d. 5,040,000 6. In the income statement for 2015 restated to current cost, what should be reported asWhat is the fraction that should be used in restating the note receivable on December 31, 2015? a. 400/150 b. 400/250 c. 44/80 d. 400/400 4. Tabal Company purchased land for P3,000,000 on December 31, 2014 when the index number was 120. The land was held until December 31, 2015 when it was sold for P4,000,000. The index number on December 31, 2015 was 300. What amount should be reported in the income statement for 2015 in a hyperinflationary economy as gain or loss on sale of land? a. 3,500,000 loss b. 3,500,000 gain c. 1,000,000 gain d. 1,000,000 loss 5. Villena Company's machinery and equipment account on December 31, 2015 is analyzed as follows: Cost Accumulated Depreciation Acquired in December 2012 4,000,000 1,600,000 Acquired in December 2013 1,000,000 200,000Assessment 1 1. The following information pertains to Meliza Company for the year ended December 31, 2015: Net monetary assets - January 1 P 880,000 Sales 3,900,000 Purchases 2,340,000 Expenses 975,000 Income tax 585,000 Cash dividends paid on December 31, 2015 200,000 The sales, purchases, expenses and income tax accrued evenly throughout the year. Selected general price index numbers are 110 on January 1 and 280 on December 31. What is the gain or loss on purchasing power during the year? a. P1,360,000 gain b. P1,360,000 loss c. P200,000 gain d. P200,000 loss 2. The following liabilities appear on the statement of financial position of Malto Company: Deferred tax liability 400,000 Estimated warranty liability 200,000 Advances from customers 1,200,000 Unearned revenue 300,000 Finance lease liability 4,000,000 Bonds payable 3,000,000 Accrued payable 500,000 Accounts payable 1,000,000 In preparing financial statements in a hyperinflationary economy, how much should the entity classify as monetary liabilities