Question
Simple Company reported the following information in relation to land: The entity purchased land on January 1, 2020 for Php500,000 cash. On December 31, 2020,
| Simple Company reported the following information in relation to land: |
| The entity purchased land on January 1, 2020 for Php500,000 cash. On December 31, 2020, the land has a current replacement cost of php700,000. |
| On December 31, 2021, the land has a current replacement cost of Php750,000. |
| The entity sold hald of the land for Php500,000 on December 31, 2022. On this date, the current replacement ocst of the entire land is Php800,000. |
| What is the unrealized holding gain to be reported in 2022? |
| Php25,000 |
| Php50,000 |
| Php300,000 |
| Php150,000 |
| None of the above |
| What is the realized holding gain to be reported in 2022? |
| Php25,000 |
| Php50,000 |
| Php300,000 |
| Php150,000 |
| None of the above |
| What is the realized holding gain to be reported in 2020? | |
| Php 200,000 | |
| Php 700,000 | |
| Php 500,000 | |
| Php 0 | |
| None of the above |
| What is the gain on sale of land to be reported in 2022? | |
| Php 100,000 | |
| Php 150,000 | |
| Php 125,000 | |
| Php 250,000 | |
| None of the above |
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The Mcgraw Hill 36 Hour Course In Finance For Non Financial Managers
Authors: Robert Cooke
2nd Edition
0071425462, 978-0071425469
