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Required: Kindly show your solution clearly. Answer items 16 and 17 please. 16. Foot Co. acquired a piece of land in 20x1 for P6,000,000. Foot
Required: Kindly show your solution clearly. Answer items 16 and 17 please.
16. Foot Co. acquired a piece of land in 20x1 for P6,000,000. Foot Co. subsequently revalued the land as follows: Date Fair value 7,000,000 5,600,000 Dec. 31, 20x4 Dec. 31, 20x9 What amounts are recognized in Foot Co.'s 20x9 Profit or loss - Increase (Decrease) OCI - Increase (Decrease) a. (1,000,000) (400,000) b. 0 (1,400,000) c. (1,400,000) 0 d. (400,000) (1,000,000) 17. On January 1, 20x1, Pizzicato Co. acquired a machine for P20,000,000. Pizzicato Co. estimated a useful life of 10 years and a residual value of P1,000,000 and used the straight line method of depreciation. In 20x4, Pizzicato Co. changed the depreciation method to the sum-of-the-years' digits method, and the estimates of useful life and residual value to a remaining 5-year useful life and P800,000, respectively. On July 21, 20x6, Pizzicato. Co. sold the machine for P4,500,000. Pizzicato Co. incurred selling costs of P50,000. Pizzicato Co. prorates full-year depreciation on the basis of the nearest month. How much is the gain (loss) on the sale? b. (162,237) c. 175,000 d. (175,000) a. 162,237Step by Step Solution
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