Valix Finacc vol 1 Problem 19-11 to 15

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 19 Problem 19-11 to 15

Problem 19-11 Answer  B                                                                                                                                                                                                          Replacement

                                                                                    Cost                   cost            Appreciation

Building                                                                     5,000,000           8,000,000            3,000,000

Accumulated depreciation                                     1,250,000            2,000,000              750,000

                                                                                3,750,000           6,000,000           2,250,000

Problem 19-12  Answer  B

                                                                                                                                                                                                                                    Sound               Book          Revaluation

                                                                                      value               value             surplus

Land                                                                         5,000,000           2,000,000            3,000,000

Building (75% x 25,000,000)                                      18,750,000         11,250,000            7,500,000

Machinery (50% x 5,000,000)                                      2,500,000          1,500,000            1,000,000

                                                                                                                                  11,500,000

 

Problem 19-13  Answer  D                                                                                                 

 

Fair value – December 31, 2008                                                                                     450,000

Net book value – December 31, 2008                                                                302,500

Revaluation surplus                                                                                                        142,500

Problem 19-14 

Question 1                                                                                                                  Answer  A

Question 2                                                                                                                   Answer  B

Question 3                                                                                                                  Answer  B 

 

Problem 19-15

1.  A                 6.  A                 11.  A                

2.  C                 7.  A                 12.  A                

3.  B                  8.  D                 13.  A                

4.  A                 9.  D                 14.  D                

5.  A                10.  D                15.  A