The following transactions relate to the plant asset acquisitions…

Question The following transactions relate to the plant asset acquisitions… The following transactions relate to the plant asset acquisitions of the Gray Company during 2021: 1.  The Gray Company purchased a piece of land with an old warehouse upon it for ₱225,000.  The Gray Company paid legal fees of ₱15,000 to obtain title to the property.2.  The old warehouse was demolished at a cost of ₱75,000 less ₱10,000 realized from the salvage value of the materials.3.  A new warehouse was constructed by the Gray Company.  The costs of construction were:  ₱6,500 for building permits, ₱17,000 for architect’s fees, ₱85,000 for excavation, and ₱900,000 for construction costs.4.  The Gray Company paid ₱9,000 for landscaping of the grounds around the new warehouse, ₱110,000 for paving and lighting a parking lot adjacent to the new warehouse, and ₱11,000 for a special assessment for new sewers.5.  The Gray Company purchased an office building for ₱1,950,000.  Appraisal values were ₱100,000 for the land, ₱1,000,000 for the office building, and ₱900,000 for the equipment. 6.  The Gray Company purchased equipment with an invoice price of ₱60,000.  Freight charges on the equipment were ₱150. Insurance costs during shipment were ₱50; insurance costs for the remainder of the year were ₱300.  Installation costs of the equipment were ₱4,000.7.  The Gray Company paid legal fees of ₱3,500 to register its trademark.  The estimated fair market value of the trademark is ₱850,000.  The Gray Company paid legal fees of ₱45,000 in a successful defense of the trademark. Required:1.  Determine the amounts that should be recorded in the land, land improvements, building, equipment, and trademark accounts.2.  Determine the amount of amortization expense to be recorded on the trademark during 2021. Business Accounting ACCOUNTING 450 Share QuestionEmailCopy link Comments (0)