Pls show solutions and answer Transcribed Image Text: Problem 27-27 (AICPA Adapted) At the beginning of current year, Obvious Company provided the following: Accumulated depreciation Cost 875,000 7,500,000 2,250,000 Land

Pls show solutions and answer Transcribed Image Text: Problem 27-27 (AICPA Adapted)
At the beginning of current year, Obvious Company provided
the following:
Accumulated
depreciation
Cost
875,000
7,500,000
2,250,000
Land
Building
Machinery and equipment
1,644,500
635,000
Building – double declining balance, 25 years
Machinery and equipment – Straight line, 10 years
Land improvements – Straight line
On January 1, a plant facility consisting of land and building
was acquired from another entity in exchange for 25,000
shares of Obvious Company.
On this date, the share had a market price of P50. Current
zonal values of land and building for property tax purposes-
are P150,000 and P600,000, respectively.
On March 31, new parking lot, street and sidewalk at the
acquired plant facility were completed at a total cost of
P192,000. These expenditures had an estimated useful life
of 12 years.
On July 1, machinery and equipment were purchased at
a total invoice cost of P340,000. Additional cost of P10,000
for delivery and P50,000 for installation were incurred.
On December 20, a machine with a cost of P170,000 and a
carrying amount of P29,750 at date of disposition was
scrapped without cash recovery,
Required:
Determine the depreciation of the building, machinery and
equipment, and land improvements for the current year.
800

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadline.


Click Here to Make an Order Click Here to Hire a Writer