accountable for their environmental impact, labor practices, and contributions to social
causes. The ethical question arises about whether companies are genuinely committed to
these causes or merely using CSR as a marketing strategy to enhance their public image.
From a legal perspective, businesses may be required to comply with environmental laws,
labor laws, and fair-trade regulations, but these legal frameworks often do not fully address
the broader social responsibility that companies should uphold.#### 3.2 **Employee Rights
and Workplace Discrimination**Ethical and legal issues surrounding employee rights
include matters like equal
TEST BANK
INTERMEDIATE
Financial
Accounting
Part 1B
2015
ZEUS VERNON B. MILLAN
, TABLE OF CONTENTS
CHAPTER 12
INVESTMENTS IN ASSOCIATES ......................................................................... 1
CHAPTER 12: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION
PURPOSES)............................................................................................................. 1
CHAPTER 12: THEORY OF ACCOUNTS REVIEWER ............................................... 6
CHAPTER 12 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 23
CHAPTER 13
AGRICULTURE...................................................................................................... 24
CHAPTER 13: MULTIPLE CHOICE – COMPUTATIONAL (FOR CLASSROOM INSTRUCTION PURPOSES) 24
CHAPTER 13: THEORY OF ACCOUNTS REVIEWER ............................................. 28
CHAPTER 13 - SUGGESTED ANSWERS TO REVIEW THEORY QUESTIONS............ 34
CHAPTER 14
PROPERTY, PLANT AND EQUIPMENT (PART 1)....................................... 35
CHAPTER 14: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION
PURPOSES)........................................................................................................... 35
CHAPTER 14: THEORY OF ACCOUNTS REVIEWER ............................................. 40
CHAPTER 14 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 50
CHAPTER 15
PROPERTY, PLANT AND EQUIPMENT (PART 2)....................................... 52
CHAPTER 15: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION
PURPOSES)........................................................................................................... 52
CHAPTER 15: THEORY OF ACCOUNTS REVIEWER ............................................. 58
CHAPTER 15 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 79
CHAPTER 16
DEPLETION OF MINERAL RESOURCES ........................................................ 80
CHAPTER 16: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION
PURPOSES)........................................................................................................... 80
CHAPTER 16: THEORY OF ACCOUNTS REVIEWER ............................................. 84
CHAPTER 16 – SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 91
CHAPTER 17
GOVERNMENT GRANTS .................................................................................... 92
CHAPTER 17: MULTIPLE CHOICE – COMPUTATIONAL (FOR CLASSROOM INSTRUCTION PURPOSES) 92
CHAPTER 17: THEORY OF ACCOUNTS REVIEWER ............................................. 94
CHAPTER 17 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS102
CHAPTER 18
BORROWING COSTS .........................................................................................103
CHAPTER 18: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION
PURPOSES).........................................................................................................103
CHAPTER 18: THEORY OF ACCOUNTS REVIEWER ...........................................105
CHAPTER 18 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS114
CHAPTER 19
INVESTMENT PROPERTY ...............................................................................115
, CHAPTER 19 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS127
CHAPTER 20
INTANGIBLE ASSETS........................................................................................128
CHAPTER 20: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION
PURPOSES).........................................................................................................128
CHAPTER 20: THEORY OF ACCOUNTS REVIEWER ...........................................134
CHAPTER 20 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS155
CHAPTER 21
IMPAIRMENT OF ASSETS ...............................................................................156
CHAPTER 21: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION
PURPOSES).........................................................................................................156
CHAPTER 21: THEORY OF ACCOUNTS REVIEWER ...........................................164
CHAPTER 21 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS170
accountable for their environmental impact, labor practices, and contributions to social causes. The
ethical question arises about whether companies are genuinely committed to these causes or merel
using CSR as a marketing strategy to enhance their public image. From a legal perspective,
businesses may be required to comply with environmental laws, labor laws, and fair-trade
regulations, but these legal frameworks often do not fully address the broader social responsibility
that companies should uphold.#### 3.2 **Employee Rights and Workplace Discrimination**Ethica
and legal issues surrounding employee rights include matters like equal
, Chapter 12
Investments in Associates
Chapter 12: Multiple choice – Computational (SET B) – (For classroom
instruction purposes)
Equity method – Cost equal to fair value of interest acquired
Use the following information for the next five questions:
On January 1, 20x1, ABASE Co. purchased 20,000 shares of the 100,000 total
outstanding shares of PRAISE, Inc. for ₱4,000,000. PRAISE’s assets and liabilities
approximate their fair values. In 20x1, PRAISE, Inc. reported profit of
₱12,000,000 and declared and paid cash dividends of ₱800,000.
In 20x2, PRAISE reported loss of ₱8,000,000, declared and issued 10% stock
dividends, and reported gain on property revaluation of ₱2,000,000 and loss on
exchange differences on translation of foreign operations of ₱400,000.
accountable for their environmental impact, labor practices, and contributions to social
causes. The ethical question arises about whether companies are genuinely committed
to these causes or merely using CSR as a marketing strategy to enhance their public
image. From a legal perspective, businesses may be required to comply with
environmental laws, labor laws, and fair-trade regulations, but these legal frameworks
often do not fully address the broader social responsibility that companies should
uphold.#### 3.2 **Employee Rights and Workplace Discrimination**Ethical and legal
issues surrounding employee rights include matters like equal
1. How much is the share in profit or loss of the associate in 20x1?
a. 2,240,000 b. 2,400,000 c. 160,000 d. 0
2. How much is the carrying amount of the investment as of December 31, 20x1?
a. 4,000,000 b. 6,240,000 c. 6,400,000 d. 6,560,000
3. How much is the investment income (loss on investment) to be recognized in
profit or loss in 20x2?
a. (1,280,000) b. 400,000 c. (1,600,000) d. 320,000
4. How much is the net share in the other comprehensive income of the
associate in 20x2?
a. 320,000 b. (1,280,000) c. (1,280,000) d. 0
5. How much is the carrying amount of the investment as of December 31, 20x2?
a. 4,960,000 b. 4,640,000 c. 4,000,000 d. 0
Equity method – Cost exceeds fair value of interest acquired
Use the following information for the next three questions:
On January 1, 20x1, ABET Co. purchased 25% interest in the ordinary shares of
ENCOURAGE, Inc. for ₱8,000,000. ENCOURAGE’s assets and liabilities
approximate their fair values except for inventories with carrying amount of
₱2,000,000 and fair value of ₱400,000 and depreciable asset with carrying
amount of ₱12,000,000 and fair value of ₱20,000,000. The remaining useful life of
the depreciable asset is 10 years. ENCOURAGE’s net assets has a book value of
₱20,000,000.
On December 31, 20x1, ENCOURAGE reported ₱4,800,000 profit and declared
causes. The ethical question arises about whether companies are genuinely committed to
these causes or merely using CSR as a marketing strategy to enhance their public image.
From a legal perspective, businesses may be required to comply with environmental laws,
labor laws, and fair-trade regulations, but these legal frameworks often do not fully address
the broader social responsibility that companies should uphold.#### 3.2 **Employee Rights
and Workplace Discrimination**Ethical and legal issues surrounding employee rights
include matters like equal
TEST BANK
INTERMEDIATE
Financial
Accounting
Part 1B
2015
ZEUS VERNON B. MILLAN
, TABLE OF CONTENTS
CHAPTER 12
INVESTMENTS IN ASSOCIATES ......................................................................... 1
CHAPTER 12: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION
PURPOSES)............................................................................................................. 1
CHAPTER 12: THEORY OF ACCOUNTS REVIEWER ............................................... 6
CHAPTER 12 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 23
CHAPTER 13
AGRICULTURE...................................................................................................... 24
CHAPTER 13: MULTIPLE CHOICE – COMPUTATIONAL (FOR CLASSROOM INSTRUCTION PURPOSES) 24
CHAPTER 13: THEORY OF ACCOUNTS REVIEWER ............................................. 28
CHAPTER 13 - SUGGESTED ANSWERS TO REVIEW THEORY QUESTIONS............ 34
CHAPTER 14
PROPERTY, PLANT AND EQUIPMENT (PART 1)....................................... 35
CHAPTER 14: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION
PURPOSES)........................................................................................................... 35
CHAPTER 14: THEORY OF ACCOUNTS REVIEWER ............................................. 40
CHAPTER 14 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 50
CHAPTER 15
PROPERTY, PLANT AND EQUIPMENT (PART 2)....................................... 52
CHAPTER 15: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION
PURPOSES)........................................................................................................... 52
CHAPTER 15: THEORY OF ACCOUNTS REVIEWER ............................................. 58
CHAPTER 15 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 79
CHAPTER 16
DEPLETION OF MINERAL RESOURCES ........................................................ 80
CHAPTER 16: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION
PURPOSES)........................................................................................................... 80
CHAPTER 16: THEORY OF ACCOUNTS REVIEWER ............................................. 84
CHAPTER 16 – SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 91
CHAPTER 17
GOVERNMENT GRANTS .................................................................................... 92
CHAPTER 17: MULTIPLE CHOICE – COMPUTATIONAL (FOR CLASSROOM INSTRUCTION PURPOSES) 92
CHAPTER 17: THEORY OF ACCOUNTS REVIEWER ............................................. 94
CHAPTER 17 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS102
CHAPTER 18
BORROWING COSTS .........................................................................................103
CHAPTER 18: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION
PURPOSES).........................................................................................................103
CHAPTER 18: THEORY OF ACCOUNTS REVIEWER ...........................................105
CHAPTER 18 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS114
CHAPTER 19
INVESTMENT PROPERTY ...............................................................................115
, CHAPTER 19 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS127
CHAPTER 20
INTANGIBLE ASSETS........................................................................................128
CHAPTER 20: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION
PURPOSES).........................................................................................................128
CHAPTER 20: THEORY OF ACCOUNTS REVIEWER ...........................................134
CHAPTER 20 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS155
CHAPTER 21
IMPAIRMENT OF ASSETS ...............................................................................156
CHAPTER 21: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION
PURPOSES).........................................................................................................156
CHAPTER 21: THEORY OF ACCOUNTS REVIEWER ...........................................164
CHAPTER 21 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS170
accountable for their environmental impact, labor practices, and contributions to social causes. The
ethical question arises about whether companies are genuinely committed to these causes or merel
using CSR as a marketing strategy to enhance their public image. From a legal perspective,
businesses may be required to comply with environmental laws, labor laws, and fair-trade
regulations, but these legal frameworks often do not fully address the broader social responsibility
that companies should uphold.#### 3.2 **Employee Rights and Workplace Discrimination**Ethica
and legal issues surrounding employee rights include matters like equal
, Chapter 12
Investments in Associates
Chapter 12: Multiple choice – Computational (SET B) – (For classroom
instruction purposes)
Equity method – Cost equal to fair value of interest acquired
Use the following information for the next five questions:
On January 1, 20x1, ABASE Co. purchased 20,000 shares of the 100,000 total
outstanding shares of PRAISE, Inc. for ₱4,000,000. PRAISE’s assets and liabilities
approximate their fair values. In 20x1, PRAISE, Inc. reported profit of
₱12,000,000 and declared and paid cash dividends of ₱800,000.
In 20x2, PRAISE reported loss of ₱8,000,000, declared and issued 10% stock
dividends, and reported gain on property revaluation of ₱2,000,000 and loss on
exchange differences on translation of foreign operations of ₱400,000.
accountable for their environmental impact, labor practices, and contributions to social
causes. The ethical question arises about whether companies are genuinely committed
to these causes or merely using CSR as a marketing strategy to enhance their public
image. From a legal perspective, businesses may be required to comply with
environmental laws, labor laws, and fair-trade regulations, but these legal frameworks
often do not fully address the broader social responsibility that companies should
uphold.#### 3.2 **Employee Rights and Workplace Discrimination**Ethical and legal
issues surrounding employee rights include matters like equal
1. How much is the share in profit or loss of the associate in 20x1?
a. 2,240,000 b. 2,400,000 c. 160,000 d. 0
2. How much is the carrying amount of the investment as of December 31, 20x1?
a. 4,000,000 b. 6,240,000 c. 6,400,000 d. 6,560,000
3. How much is the investment income (loss on investment) to be recognized in
profit or loss in 20x2?
a. (1,280,000) b. 400,000 c. (1,600,000) d. 320,000
4. How much is the net share in the other comprehensive income of the
associate in 20x2?
a. 320,000 b. (1,280,000) c. (1,280,000) d. 0
5. How much is the carrying amount of the investment as of December 31, 20x2?
a. 4,960,000 b. 4,640,000 c. 4,000,000 d. 0
Equity method – Cost exceeds fair value of interest acquired
Use the following information for the next three questions:
On January 1, 20x1, ABET Co. purchased 25% interest in the ordinary shares of
ENCOURAGE, Inc. for ₱8,000,000. ENCOURAGE’s assets and liabilities
approximate their fair values except for inventories with carrying amount of
₱2,000,000 and fair value of ₱400,000 and depreciable asset with carrying
amount of ₱12,000,000 and fair value of ₱20,000,000. The remaining useful life of
the depreciable asset is 10 years. ENCOURAGE’s net assets has a book value of
₱20,000,000.
On December 31, 20x1, ENCOURAGE reported ₱4,800,000 profit and declared
