Cost 1120x2 P36000 Less Accumulated depreciation P360008years x 25 years 11250

Cost 1120x2 p36000 less accumulated depreciation

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Cost, 1/1/20x2 P36,000 Less: Accumulated depreciation : P36,000/8years x 2.5 years 11,250 24,750 Unrealized gain on sale of equipment P 8,250 Realized gain – depreciation: P8,250/5.5 years P 1,500 54. a - refer to No. 53 for computation 55. b Eliminating entries: 12/31/20x4: subsequent to date of acquisition Realized Gain – depreciation (July 1, 20x4 – December 31, 20x4) Accumulated depreciation 750 Depreciation expense 750 P8,250 / 5.5 x ½ years or P3,000 – P2,250 “Should be in CFS” Parent Books – Sky “Recorded as” Subsidiary Books - Earth Depreciation expense Depreciation expense
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(P24,750 / 5.5 x ½ years) 2,250 (P33,000 / 5.5 years x ½ yrs) 3,000 Acc. Depreciation 2,250 Acc. depreciation 3,000 56. c Eliminating entries: 12/31/20x5: subsequent to date of acquisition Realized Gain – depreciation Accumulated depreciation 1,500 Depreciation expense 1,500 P8,250 / 5.5 x years or P6,000 – P4,500 “Should be in CFS” Parent Books – Sky “Recorded as” Subsidiary Books - Earth Depreciation expense (P24,750 / 5.5 years) 4,500 Depreciation expense (P33,000 / 5.5 years) 6,000 Acc. Depreciation 4,500 Acc. depreciation 6,000 57. d Eliminating entries: 1/1/20x5: subsequent to date of acquisition Building 3,000 Retained earnings (8,250 – 750) 7,500 Accumulated depreciation (P11,250 – P750) 10,500 58. d - P60,000 - P36,000 = P24,000 debit 59. b - P36,000 - (P60,000 - P31,200) = P7,200 gain (debit) 60. c - (P36,000/6)(8/12) - [(P60,000 - P31,200)/6](8/12) = P800 credit 61. a - P31,200 - {(P36,000/6)(8/12) - [(P60,000 - P31,200)/6](8/12)} = P30,400 credit 62. c - P36,000 - (P60,000 - P31,200) = P7,200 gain (debit) (P36,000/6)(8/12) - [(P60,000 - P31,200)/6](8/12) = P800 credit 63. b P72,000 - (P96,000 - P36,600) = P12,600 gain (debit) (P72,000/5)(4/12) - [(P96,000 - P36,600)/5](4/12) = P840 (credit) (P12,600 - P840) .1 = P1,176 debit 64 . d When only retained earnings is debited, and not the non-controlling interest, a gain has been recorded in a prior period on the parent's books. 65. d 66. a 67. b 68. b – at its original cost or book value. 69. b 20x4: Any intercompany gain should be eliminated in the CFS. 20x5 Selling price – unrelated party P 100,000 Less: Original Book value, 9/26/20x5 __60,000 Accumulated depreciation, 9/26/20x5 P 40,000 70. d – P30,000 + P40,000 = P70,000
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S P Consolidate d Selling price Less: Book value Gain P 30,000 P 40,000 P 70,000 71. d – P110,000 – P30,000 = P80,000 S (Nectar) P (Lorikeet) Consolidate d Selling price P 50,000 P 110,000 P 110,000 Less: Book value _30,000 __50,000 _30,000 Gain P 20,000 P 60,000 P 80,000 72. d S P Consolidate d Selling price P1,980,0 00 P1,440,0 00 P1,440,000 Less: Book value: Cost P2,000,00 0 P1,980,0 00 P 1,800,000 Accumulat ed ___200,0 00 1,800,00 *1,320,0 00 660,00 0 **1,200,00 0 __600,000 Unrealized gain on sale of equipment P 180,000 Realized Gain – depreciation (P180,000/9 x 6 yrs) 120,000 Net unrealized gain, 1/1/20x9 P 60,000 Gain on sale P 60,000 P 780,000 P 840,000 *P1,980,000/ 9 x 6 years = P1,320,000 **P1,800,000/9 x 6 years = P1,200,000 73. d –(P100,000 + P50,000 = P150,000) S P Consolidate d Selling price Less: Book value Gain P 100,000 P 50,000 P 150,000 74. c S P Consolidated Selling price P 990,000 P720,000 P 720,000 Less: Book value : Cost P1,000,0 00 P990,000 P 900,000 Accumulat ed 100,000 __900,00 0 *440,000 550,00 0 **400,000 __500,000 Unrealized gain on sale of Equipment,1/1/20x4 P 90,000 Realized Gain – depreciation (P90,000/9 x 4 yrs) 40,000
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Net unrealized gain, 1/1/20x8 P 50,000 _______ ___ ___________ Gain on sale P 50,000 P 170,000 P 220,000 *P990,000/ 9 x 4 years = P440,000 **P900,000/9 x 4 years = P400,000 75. d – (P30,000 + P15,000) 76. c Selling price – unrelated party P 14,000 Less: Original Book value, 12/31/20x5 Book value, 1/1/20x4 P20,000 Less: Depreciation for 20x4 and 20x5: P20,000/4 years x 2 years 10,000 10,000 Accumulated depreciation, 12/31/20x4 P 4,000 77. b Sort Fort Consolidated Selling price P 100,000 P 65,000 P 65,000 Less: Book value : Cost P 120,000 P100,000 P 90,000 Accumulat ed __30,000 __90,000 **50,000 50,000 **45,000 __45,000 Unrealized gain on sale of Equipment, 12/30/20x3 P 10,000 Realized Gain – depreciation
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