Problem 2 McNight Inc. bought a new machine and agreed to pay for it in equal annual installments of 1' 250,000 at the end of the next five years. Assume that the prevailing interest rate is 15%. The present value annuity factor of 15% for ve periods is 3.35. The future amount of an ordinary annuity of 1 at 15% for ve periods is 6.74. The present value of 1 at 15 % for five periods is 0.5. How much should McNight record the cost of the machine? Probiem 3 On 31 March, 2014, B Express traded in an old machine having a carrying value of P 400,000 and paid a cash difference of P 150,000 for a new machine having a total cash price of P 500,000. On 31 March 2014, what amount of gaim'loss should Blight recognize on this exchange? (Indicate whether it is a gain or loss). Problem 4 On 1 October 2015, Jet Corporation issued 10,000 shares of its treasury ordinary share for a parcel of land to be held for a future plant site. The treasury shares were acquired by Jet at a cost of ? 30 per share and have a par value of P 25 per share. Jet's ordinary share had a fair market value of P 40 per share on 1 October 2014. Jet received P 50,000 from the sale of scrap when an existing structure on the site was razed. At what amount should the land he carried