Intermediate accounting by robles empleoch 8 answers

Financial Assets & Non-current Assets Held for Sale# PAGE #64#.

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430,000 Costs of clearing the land (net of timber and gravel recovered

P 4,000,000 Market value ofshares issued (20,000 x 240) 4,800,000 Present value

of non-interest bearing note issued (2,000,000 x 2.4869)

4,973,800 Total cost of land and building

P13,773,800 Cost allocated to land (30% x 13,773,800) P 4,132,140 Cost allocated to building (70%

x 13,773,800) P 9,641,660 8-2 (Precious Realty

Corporation)1/2/09#Buildings#8,200,000####Accumulated Depreciation � Building Held as Investment Property#4,200,000#### Buildings Held as Investment Property##8,200,000### Accumulated Depreciation -

Buildings##4,200,000#######12/31/09#Depreciation Expense � Buildings #

200,000#### Accumulated Depreciation - Buildings## 200,000##Raymond CompanyBuilding Construction Fund Cash Cash

Building Expansion Fund Securities Building Expansion Fund SecuritiesBuilding Expansion Fund Securities Interest Receivable � Building Expansion Fund Building Expansion Fund CashBuilding Expansion Fund Cash

Dividend IncomeBuilding Expansion Fund Expenses Building Expansion Fund CashBuilding Expansion Fund Cash Interest Receivable � Building

Expansion Fund Securities Building Expansion Fund CashBuilding

Expansion Fund Cash Building Expansion Fund Securities Gain on Sale of Building Expansion Fund SecuritiesBuilding Expansion Fund Cash

Dividend IncomeBuilding Expansion Fund Cash Building Expansion Fund Securities Gain on Sale of Building Expansion Fund Securities

Buildings Building Expansion Fund CashCash Building Expansion Fund CashCordero CorporationRequired Semiannual Deposit = P15,000,000/ PV of annuity of 1 discounted at 4% for 20 periods = P15,000,000 / 13.5903 =

P1,103,7281/2/08 Bond Sinking Fund Cash 1,103,728

120,00012/31/06 Life Insurance Expense

120,00012/31/08 Life Insurance Expense120,000 Prepaid Life Insurance120,00006/30/09 Prepaid Life Insurance

120,000 Cash

120,00012/31/09 Life Insurance Expense 120,000

Expense 13,0003/31/11 Life

from Insurance Company 4,000,000 Prepaid

Gain on Insurance Settlement 3,921,000If the president or his heirs were the beneficiaries of the policy, the premiums paid shall be charged to employees benefit expense and no cash surrender value will be set up by the company.Solidbanka.#P10,000,000 x 0.3220 =

P3,220,000##b.#Interest Income in 2008 = 12% x P3,220,000 = P386,400##c.#1/1/08

Advances to Officers 3,220,000

Prepaid Compensation Expense 6,780,000

Cash

10,000,000###12/31/08 Advances to Officers

386,400 Interest Revenue

386,400###### Compensation Expense

386,400 Prepaid Compensation Expense

386,400##### #12/31/09 Advances to Officers

432,768 Interest Revenue

432,768 (3,220,000 + 386,400) x 12% = 432,768 ##d.#Amortized Cost at December 31, 2009 = 3220,000 + 386,400 + 432,768 = 4,039,168##Patriarch, Inc.a#12/31/08 Machinery Group Held For Sale

1,400,000 Accumulated Depreciation � Machinery

1,200,000 Impairment Loss � Machinery

200,000 Machinery

2,200,000 Machinery Tools

380,000 Machinery Parts

220,000##b.#07/17/09 Cash (1,520,000 � 60,000)

1,460,000 Machinery Group Held For Sale

1,400,000 Gain on Sale of Machinery

60,000##(Invecargill Ltd.)a.#08/01/08 Impairment Loss � Equipment

15,000 Loss from Decline in NRV of Inventory

5,000 Equipment

15,000 Inventory

5,000##b.# Assets Held for Sale

350,000 Accumulated Depreciation

80,000 Impairment Loss

30,000 Plant

220,000 Equipment

145,000 Inventory

75,000 Goodwill

20,000##c.#02/01/09 Cash (380,000 � 30,000)

350,000 Assets Held For Sale

350,000##MULTIPLE CHOICE MC1#C##MC2#C##MC3#A##MC4#B##MC5#B##MC6#C##MC7#C##MC8#C##MC9#B##MC10#A##MC11#B##M C12#A##MC13#B##MC14#D##MC15#B##MC16#A ##MC17#A 110,000 � (115,000 � 80,000)##MC18#D 9,000,000 � 1,500,000 = 7,500,000 which is lower than carrying amount of P8,000,000.##MC19#D

(9,200,000 � 1,300,000) � 7,500,000 = 400,000 ##MC20#C 2,000,000 x 0.7972 = 1,594,400 1,594,400 x 12% x 6/12 = 95,664; 1,594,400 + 95,664 = 1,690,064######Chapter 8 � Investment Property, Other Non-current

Financial Assets & Non-current Assets Held for Sale# PAGE #64#

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