January 1, 2023, Madison Square Garden Company (MSG) disclosed the following balances: Land 4,000,000 Land improvements 1,300,000 Building 20,000,000 Machinery 8,000,000 During the current year, the following transactions occurred: A tract of land was acquired for P2,000,000 cash as a building site. A plant facility consisting of land and building was acquired in exchange for 200,000 shares of MSG. On the acquisition date, each share had a quoted price of P45 on a stock exchange. The plant facility was carried on the seller’s books at P1,600,000 for land and P5,400,000 for the building at the exchange date. Current appraised values for the land and the building, respectively, are P2,000,000 and P8,000,000. The building has an expected life of 20 years with a P200,000 residual value. Machinery was purchased for P4,000,000. Additional costs incurred were freight and unloading P100,000 and installation P300,000. The machinery had a useful life of 10 years with no residual value. Expenditures totaling P1,200,000 were made for new parking lot, street and sidewalks at MSG’s various plant locations. Theses expenditures had an estimated useful life 15 years. Research and development costs totaled P1,100,000 for the year. A machine costing P200,000 on January 1, 2015 was scrapped on June 30, 2023. Straight line depreciation had been recorded on the basis of a 10-year life with no residual value. A machine was sold for P5000,000 on July 1, 2023. Original cost of the machine sold was P700,000 1) What is the total cost of land on December 31, 2023? A . 7,800,000 B. 7,600,000 C. 8,000,000 D. 6,800,000 2) What is the total cost of land improvement on December 31, 2023? A . 1,200,000 B. 3,600,000 C. 1,300,000 D. 2,500,000 3) What is the total cost of building on December 31, 2023? A . 28,000,000 B. 25,400,000 C. 27,200,000 D. 27,000,000 4) What is the total cost of machinery on December 31, 2023? A . 12,400,000 B. 11,500,000 C. 11,000,000 D. 11,700,000
January 1, 2023, Madison Square Garden Company (MSG) disclosed the following balances:
Land 4,000,000
Land improvements 1,300,000
Building 20,000,000
Machinery 8,000,000
During the current year, the following transactions occurred:
A tract of land was acquired for P2,000,000 cash as a building site.
A plant facility consisting of land and building was acquired in exchange for 200,000 shares of MSG. On the
acquisition date, each share had a quoted price of P45 on a stock exchange. The plant facility was carried
on the seller’s books at P1,600,000 for land and P5,400,000 for the building at the exchange date.
Current appraised values for the land and the building, respectively, are P2,000,000 and P8,000,000. The
building has an expected life of 20 years with a P200,000 residual value.
Machinery was purchased for P4,000,000. Additional costs incurred were freight and unloading P100,000
and installation P300,000. The machinery had a useful life of 10 years with no residual value.
Expenditures totaling P1,200,000 were made for new parking lot, street and sidewalks at MSG’s various
plant locations. Theses expenditures had an estimated useful life 15 years.
Research and development costs totaled P1,100,000 for the year.
A machine costing P200,000 on January 1, 2015 was scrapped on June 30, 2023. Straight line
had been recorded on the basis of a 10-year life with no residual value.
A machine was sold for P5000,000 on July 1, 2023. Original cost of the machine sold was P700,000 1) What is the total cost of land on December 31, 2023?
A
.
7,800,000 B. 7,600,000 C. 8,000,000 D. 6,800,000
2) What is the total cost of land improvement on December 31, 2023?
A
.
1,200,000 B. 3,600,000 C. 1,300,000 D. 2,500,000
3) What is the total cost of building on December 31, 2023?
A
.
28,000,000 B. 25,400,000 C. 27,200,000 D. 27,000,000
4) What is the total cost of machinery on December 31, 2023?
A
.
12,400,000 B. 11,500,000 C. 11,000,000 D. 11,700,000
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