land

Land Building Machine

Improvement

Total cost 7M pro rated 5,250,000

Total cost 700K pro rated 525,000
Total cost 300K pro rated 225,000
squatting in the property 250,000
for new building const 600,000
Drainage of land site 450,000
Cost of new building 20,000,000
Building permit fee 300,000
Excavation 200,000
Cost of paving driveways 450,000
Cost trees shrubs 300,000
Installing lights 120,000
Architect fee 350,000
avoidable expenses
Insurance
Interest expense after const
Fencing 1,210,000
Machine 6,370,000
Related finance cost
Freight and other DACS 250,000
Custom duties 350,000
testing and installation 900,000
Trainning personnel
Opening costs
Adjusted PPE and expense 6,450,000 21,700,000 2,080,000 7,870,000

Machine 6,500,000
Discount 130,000
NPP 6,370,000
Expense

1,750,000
175,000
75,000

100,000
60,000
333,333

130,000

280,000
400,000
3,303,333
ITEM#1

Land Building Expense Total

total cost of 40M pro rate 28,800,000 11,200,000 40,000,000
total cost of 1M pro rate 720,000 280,000 1,000,000
Title guarantee insurance 400,000 400,000
Contract price 30,000,000 30,000,000
Demolition cost w/ intention 750,000 750,000
Initial cost and expenses 29,920,000 30,750,000 11,480,000 72,150,000

ITEM#2
Land, feb Building Total
NPP 2,500,000 2,500,000
Demolition cost 300,000 300,000
Title guarantee 100,000 100,000
Initial cost 2,900,000 - 2,900,000

ITEM#3
Land, march Building Total
NPP 7,000,000 7,000,000
Cost of demolition 500,000 500,000
Title guarante 200,000 200,000
Architect fee 550,000 550,000
Construction cost 12,200,000 12,200,000
Initial cost 7,200,000 13,250,000 20,450,000

ITEM#4
Land, apr Building Total
NPP 9,500,000 9,500,000
legal fees 300,000 300,000
Architect fee 250,000 250,000
Demolition cost 200,000 200,000
Construction cost fully completed 15,000,000 15,000,000
Initial cost 9,800,000 15,450,000 25,250,000
 Leashold
Land buildings Machinery
improvements
400,000 3,200,000 2,000,000 2,800,000
Land(1) 4,000,000
commission 240,000
site prepa 60,000
land(2) 800,000
demolition 120,000
new building 1,600,000
excavation 144,000
architectural design fees 232,000
building permit 44,000
imputed interest
electrical work 140,000
contruction of extension 160,000
improve lease office 500,000
Invoice price of machine 700,000
Freight 30,000
unloading charges 40,000
Adjusted Balance 5,500,000 5,340,000 2,800,000 3,570,000
 2023 2024
Jan 1 5,000,000 3,870,000
oct 1 2,300,000

2023
Capitalizable (specific) (1,500,000 x 12%) 180,000 jan to dec 12
Capitalizable (general jul) (4,000,000 x 14% x 6/12) 280,000
Capitalizable (general jan) (6,000,000 x 8%) 480,000

2024
Capitalizable (specific) (1,500,000 x 12%) 180,000
Capitalizable (general jul) (4,000,000 x 14) 560,000
Capitalizable (general jan) (6,000,000 x 8%) 480,000
 5,000,000 60,000,000 5,000,000
1,500,000
WAAE on GB 3,500,000

WAR 7.60%
Potential int 266,000
Actual Interest 760,000
Interest expense, 2023 494,000 (PI < AI), so, interest expense should be recogni

*potential and actual interest of specific is carried over to next year

Potential int 266,000
Specific Int 180,000 446,000 BC capitalized
WAAE 2023 5,000,000
total capitalized expenditures, bal 5,446,000

5 5,446,000 27,230,000
4 9,316,000 37,264,000
3 11,616,000 34,848,000
12 99,342,000 8,278,500
1,500,000
WAAE 6,778,500

WAR 10.40%
PI 704,964
AI 1,040,000
Interest expense 335,036

cost of new builing

Capitalied expenditures
2023 5,000,000
2024 6,170,000 11,170,000
Capitalized borrowing cost
2023 446,000
2024 884,964 1,330,964
TOTAL COST OF NEW BUILDING 12,500,964
erest expense should be recognized based on the differecnce of the PI and AI

C capitalized
Balances as of 12/31/22 cost ad EUL/method
Land 4,200,000 - -
LHI 3,000,000 2,400,000 5/ slm
Building 8,000,000 2,268,856 25/DD
ME 10,000,000 4,000,000 10/slm
FF 4,000,000 2,472,727 10/syd

2. additional dep from jan 1 to feb 28 3. exchange

Cost 3,000,000 Machinery 1,020,000

divided by: EUL 5 AD 485,833
Annual DEP 600,000 Equipment 1,100,000
no of mos before mar 1 over 12 2/12 Cash 150,000
Dep-jan 1 to feb 28 100,000 Gain 255,833

CV 500,000 Cost 1,100,000

Addition 1,000,000 EUL 10
Value of the LHI 1,500,000 Annual dep 110,000
EUL 5 jan 1 to May 31 5/12
annual dep 300,000 Dep jan 1-May 31 45,833
no of mos from mar 1 over 12 10/12
Dep-mar 1 to dec 31 250,000 Cost 1,100,000
EUL 10
AD 2023 2,750,000 Annual dep 110,000
4 years 4
AD 2022 440,000

Retained asset 1,020,000

EUL 10
Annual dep 102,000
jun 1-Dec 31 7/12
Dep jun 1-Dec 31 59,500

Retained asset 8,900,000

EUL 10
Annual dep 890,000

AD 2022 4,000,000
Depex 2023 (old asse 890,000
Addition 59,500
disposal (440,000)
AD 2023 4,509,500
4. subsequently bought a new FF 5. change in depre policy

Cash 320,000 55 8,000,000

AD 538,182 (2,268,856) 7,360,000
FF 800,000 5,731,144 6,771,200
gain 58,182 6,229,504

Numerator for 4 yrs 34 2023 dep

Dep for 4 yrs 494,545
CV
Num. for 5th yr 6 2019 8,000,000
Dep for 5th yr 87,273 2020 7,360,000
Jan1-jun30 6/12 2021 6,771,200
Dep Jan1-jun30 43,636 2022 6,229,504
AD of asset disp 538,182 2023 5,731,144
2024 5,014,751
2025 4,387,907
Newly acquired asset 2026 3,839,419
Annual installment 800,000 3,359,491
PVF 2.486852 2,939,555
PV of annual inst 1,989,482 2,572,110
freight & handling 10,518 2,250,597
Cost of new FF 2,000,000 1,969,272
1,723,113
Num. for 1st yr 10 1,507,724
Aug-dec 5/12 1,319,258
Dep for new ff 151,515 1,154,351
1,010,057
883,800
Retained FF 3,200,000 773,325
Num of 5th 6 676,659
Dep for 2023 old ff 349,091
AD 2022 2,472,727
Dep for 2023 old ff 349,091
Disposal (494,545)
Addition 151,515

AD 2023 FF 2,478,788
 640,000
588,800
541,696
498,360
2,268,856
573,114

DEP 2,985,249 5,014,751

640,000 2019 8,000,000 640,000 25 8,000,000 800,000
588,800 2020 7,360,000 588,800 24 7,200,000 720,000
541,696 2021 6,771,200 541,696 23 6,480,000 648,000
498,360 2022 6,229,504 498,360 22 5,832,000 583,200
716,393 2023 5,731,144 458,491 21 5,248,800 524,880
626,844 2024 5,272,652 421,812 20 4,723,920 472,392
548,488 2025 4,850,840 388,067 19 4,251,528 425,153
479,927 2026 4,462,773 357,022 18 3,826,375 382,638
419,936 4,105,751 328,460 17 3,443,738 344,374
367,444 3,777,291 302,183 16 3,099,364 309,936
321,514 3,475,108 278,009 15 2,789,428 278,943
281,325 3,197,099 255,768 14 2,510,485 251,048
246,159 2,941,331 235,306 13 2,259,436 225,944
215,389 2,706,025 216,482 12 2,033,493 203,349
188,465 2,489,543 199,163 11 1,830,143 183,014
164,907 2,290,379 183,230 10 1,647,129 164,713
144,294 2,107,149 168,572 9 1,482,416 148,242
126,257 1,938,577 155,086 8 1,334,175 133,417
110,475 1,783,491 142,679 7 1,200,757 120,076
96,666 1,640,812 131,265 6 1,080,681 108,068
1,509,547 120,764 5 972,613 97,261
1,388,783 111,103 4
1,277,680 102,214 3
1,175,466 94,037 2
1,081,429 86,514 1
994,914 79,593 -
915,321 73,226
842,095 67,368
774,728 61,978
712,750 57,020
655,730 52,458
603,271 48,262
555,010 44,401
510,609 40,849
469,760 37,581
432,179 34,574
397,605 31,808
365,797 29,264
336,533 26,923
309,610 24,769
284,841 22,787
262,054 20,964
241,090 19,287
221,803 17,744
204,058 16,325
187,734 15,019
172,715 13,817
158,898 12,712
146,186 11,695
134,491 10,759
123,732 9,899
113,833 9,107
104,727 8,378
96,348 7,708
88,641 7,091
81,549 6,524
75,025 6,002
69,023 5,522
63,501 5,080
58,421 4,674
53,748 4,300
49,448 3,956
45,492 3,639
41,853 3,348
38,504 3,080
35,424 2,834
32,590 2,607
29,983 2,399
27,584 2,207
25,378 2,030
23,347 1,868
21,480 1,718
19,761 1,581
18,180 1,454
16,726 1,338
15,388 1,231
14,157 1,133
13,024 1,042
11,982 959
11,024 882
10,142 811
9,330 746
8,584 687
7,897 632
7,266 581
6,684 535
6,150 492
5,658 453
5,205 416
4,789 383
4,405 352
4,053 324
3,729 298
3,431 274
3,156 252
2,904 232
2,671 214
2,458 197
2,261 181
2,080 166
1,914 153
1,761 141
1,620 130
1,490 119
1,371 110
1,261 101
1,160 93
1,068 85
982 79
904 72
831 67
765 61
704 56
647 52
596 48
548 44
504 40
464 37
427 34
393 31
361 29
332 27
306 24
281 22
259 21
238 19
219 18
201 16
185 15
170 14
157 13
144 12
133 11
122 10
112 9
103 8
95 8
88 7
81 6
74 6
68 5
63 5
58 5
53 4
49 4
45 4
41 3
38 3
35 3
32 3
30 2
27 2
25 2
23 2
21 2
20 2
18 1
17 1
15 1
14 1
13 1
12 1
11 1
10 1
9 1
8 1
8 1
7 1
7 1
6 0
6 0
5 0
5 0
4 0
4 0
4 0
3 0
3 0
3 0
3 0
2 0
2 0
2 0
2 0
2 0
2 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0