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Question 2 Yanbu Manufacturing C ompany has the following activities during 2022. Beginning of the year Purchased Land & Building SR 50 ,000,000 . Costs
Question 2
Yanbu Manufacturing Company has the following activities during 2022.
Beginning of the year
Purchased Land & Building SR50,000,000. Costs attributed to: Building 80% Land20% Building has a useful life of 20 years Residual valueZero Depreciated using straight line Consumer Price Index
Beginning of the year 125 Ending of the Year 175 Average 140
Special Price Index for the year
Land increases by 50% Construction Cost increased by 30% Fixed Assets increased by 25% A. Considering the Historical Cost Constant Dollar (GPL) method, what would be the value of this building, and its accumulated depreciation on the company balance sheet?
Historical Cost (SAR)
Price Level Adjustment
Historical Cost Constant Value (SAR)
B. Considering the current rate (SPL) method, what would be the value of this building, and its accumulated depreciation on the company balance sheet?
Historical Cost (SAR)
Price Level Adjustment
Current Cost (SAR)
Question 2
Yanbu Manufacturing Company has the following activities during 2022.
Beginning of the year
Purchased Land & Building SR50,000,000.
Costs attributed to:
Building 80% Land20%
Building has a useful life of 20 years
Residual valueZero
Depreciated using straight line
Consumer Price Index
Beginning of the year 125
Ending of the Year 175
Average 140
Special Price Index for the year
Land increases by 50%
Construction Cost increased by 30%
Fixed Assets increased by 25%
A. Considering the Historical Cost Constant Dollar (GPL) method, what would be the value of this building, and its accumulated depreciation on the company balance sheet?
| Historical Cost (SAR) | Price Level Adjustment | Historical Cost Constant Value (SAR) |
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B. Considering the current rate (SPL) method, what would be the value of this building, and its accumulated depreciation on the company balance sheet?
| Historical Cost (SAR) | Price Level Adjustment | Current Cost (SAR) |
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|
|
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