1 Total internal and external revenue.

80,000,000
Less: Internal revenue 10,000,000
External or consolidated revenue 70,000,000

Minimum External Revenue from Reportable OS (70M x 75%) 52,500,000 D

2 Minimum External Revenue from Major Customer (70M x 10%) 7,000,000 B

4 2022 Der-preciation expense (1.5M / 5 years) 300,000 B

6 Current Net Rec. (5M - 200 + 300 + 100) 5,200,000 C

7 COS (100 + 780 - 230) 650,000

Gross profit 550,000
Total sales 1,200,000
Less: Cash sales 150,000
Sales on Account 1,050,000
AR Beginning 300,000
Total collectible 1,350,000
Writeoff - 80,000
Collections excluding recovery (1,100,000 - 20,000) - 1,080,000
AR End 190,000 D

8 ADA 1/1 (300 - 270) 30,000

Recovery 20,000
Writeoff - 80,000
Balance before adjustment - 30,000
Doubtful accounts expense (SQUEEZED) 49,000 A
ADA 12/31 (190,000 x 10%) 19,000

10 Corrected FVOCI Carrying amount (8M - 1M) 7,000,000

Adjustment for Unrealized Gain 4,000,000
Fair value 11,000,000

Share capital 12,000,000

Sharepremium 9,000,000
RE 7,000,000
Treasury shares (erroneously included as FVOCI) - 1,000,000
Unrealized gain on FVOCI 4,000,000
Total SHE 31,000,000 D

11 Total Equity (9M / 150%) 6,000,000

Less: Share capital and share premium 5,000,000
RE 12/31 1,000,000
Net income - 1,200,000
 Dividends 1,800,000
RE 1/1 1,600,000 A

14 Checkbook balance 5,000,000

Undelivered check 1,000,000
T-bills 2,000,000
Undeposited collection or checks 200,000
Time deposits 500,000
Total cash and cash equivalents 8,700,000 C

16 Component of CO (1M + 300 + 800) 2,100,000 C

18 Income from CO 3,000,000

Income from DO 800,000
Net income 3,800,000 B
19 OCI recycled to P&L (-650 + 500 + 1,800) 1,650,000 B
20 OCI recycled to RE (1.5M - 400 +2M - 300) 2,800,000 B
21 Comprehensive income 8,250,000 B

23 FV 12/31 1,800,000
Less: Carrying amount / Cost 2,100,000
Unrealized loss - 300,000 D

24 Face value 5,000,000

Interest (5M x 12% x 6/12) 300,000
Maturity value 5,300,000
Less: Discount (5.3M x 12% x 4/12) 212,000
Proceeds 5,088,000 B
Less: Face value and Accrued int. (2 months) 5,100,000
25 and 26 Loss and/or Interest Expense if secured borrowing - 12,000 B & C

Net interest income (100k - 12K) 88,000 D

29 Sales (400k x 4.04) 1,616,000

Interest income (1,616,000 - 400,000) x 12% 145,920
Total income 1,761,920 C

30 Current note receivable (400,000 - 145,920) 254,080 D

32 Provision after adjustment 4,500,000 B

34 FV less Cost to Sell (7.5M - 200k) 7,300,000 35. D

Less: Revalued amount as carrying amount 7,500,000
Impairment loss - 200,000 C

36 Selling price 8,000,000

 Less: Carrying amount 7,300,000
Gain on sale 700,000 D

37 Revaluation surplus transferred to RE (2M + (7.5M - 6M)) 3,500,000 D

39 Total cost of goods exclude shipping that is paid by seller 5,000,000 B

40 Unadjusted COGS 5,100,000

Inventory loss 200,000
Loss on writedown (1,620,000 - 1,500,000) 120,000
Adjusted COGS 5,420,000 D

42 Net cumulative unrealized gain (900 - 200) 700,000

Less: 1/1 Unrealized gain balance 200,000
Increase in unrealized gain of amount recognized in the SCI 500,000 C

43 Numerator (125 - 100) 25

Divided by # of rights to purchase 1 share 4
Theretical value of each right 6.25
Multiplied by 50,000
Total value of SR 312,500 D

45 Phase 1 (100 x 400K) 40,000,000

Phase 2 (200 x 300k) 60,000,000
Phase 3 (400 x 250k) 100,000,000
Total FV 200,000,000

Cost of Phase 1 (60M + 10M) x 40/200 14,000,000 C

46 Cost 25,000,000
Less: Accum. Depr. (25M / 20 x 4) 5,000,000
CA 1/1/23 20,000,000

Depreciated Rep. Cost (32M x 20/25) 25,600,000

Less: CA 20,000,000
Revaluation surplus 1/1/23 5,600,000 A

47 CA 1/1/23 25,600,000
Less: 2023 Depreciation (25.6M / 20 - 4) 1,600,000
CA 12/31/23 24,000,000
Less: Recoverable amount 18,000,000
Total writedown 6,000,000
Less: Balance of Revaluation Surplus (5.6M - (5.6M / 16)) 5,250,000
Impairment loss 750,000 A

49 Cost 5,000,000
 Less: Book value acquired (10M x 40%) 4,000,000
Difference 1,000,000
Less: Excess of FV over BV of equip. (1.5M x 40%) 600,000
Goodwill 400,000

Share in net income at book value (4M x 40% x 6/12) 800,000

Less: Equipment amortization (600,000 / 5 x 6/12) 60,000
Equity in earnings or Investment income 740,000 C

51 AR 12/31 950,000
Writeoff 60,000
Collections 4,400,000
Total 5,410,000
AR 1/1 1,100,000
Sales on Account 4,310,000
Cash sales 640,000
Total sales 4,950,000 D
52 Less: Gross profit 1,485,000
COS 3,465,000
EI 840,000
TGAS 4,305,000
Less: Purchases 3,500,000
BI 805,000 B

54 Loss on call option / initial investment 50,000 A

55 Jan. to June 2023 (4M x 40% x 6/12) 800,000

July to December 2023 (4M - 1.6M) x 40% x 6/12 480,000
Total 2023 Depreciation 1,280,000 C

57 FV on 12/31
4 YO (160,000 x (100 - 20)) 12,800,000
4.5 YO (170,000 x 50) 8,500,000
Total CA 21,300,000 B

58 Selling price (20 * 130,000) 2,600,000

Less: CA (20 * 120,000) 2,400,000
Gain on sale 200,000 B

FV on 12/31 without physical change

3 YO (135,000 x 80) 10,800,000
4 YO (160,000 x 50) 8,000,000
Total 18,800,000

FV on Jan. 1 and date of purchase

 3 YO (80 x 120,000) 9,600,000
4 YO (50 x 150,000) 7,500,000
Total 17,100,000

58 Gain on Price Change (18.8M - 17.1M) 1,700,000 B

59 Gain on Physical Change (21.3M - 18.8M 2,500,000 B

62 Allocated cost from purchase price (4M - 500k) 3,500,000

Other cost (200 + 70 + 25 + 25 + 300) 620,000
Total cost of land 4,120,000 D

63 Life of Mine (10M tons / 100,000 per month) 100 months Shorter than 12 year life of e

Depreciation per ton ((12M - 1M) / 10M tons) 1.10

Deprecition for 6 months (1.10 x 100,000 x 6) 660,000 C

64 Grant income 7,000,000 B

Recognize the gov't grant as income in the period it becomes receivable for grants
provided as compensation for expenses or losses already incurred

66 Total interest (1.5 + 3.5) 5,000,000

Divided by total principal (15 + 25) 40,000,000
Average capitalization rate 12.50%

WA Expenditures (10M + (7.5M x 6/12) + (1.5M x 2/12)) 14,000,000

Multiply by Ave. Rate 12.50%
Borrowing cost to be capitalized 1,750,000 A

67 Interest expense (5M - 1,750,000) 3,250,000 A

68 Cumulative earnings 7,000,000

Add: Casualty loss 500,000
Net operating income 7,500,000
Divide by 3.00
Average earnings 2,500,000
Divide by capitalization rate 10%
Net assets with goodwill 25,000,000
Less: Net assets without goodwill 22,000,000
Goodwill 3,000,000 C

69 Cost of patent 6,000,000

Less: Accumulated amortization (6M / 10 x 3) 1,800,000
CA 1/1/22 4,200,000
 Less: 2022 Amortization (4.2M / (8 - 3)) 840,000
Carrying amount 12/31/2022 3,360,000 B

70 Actual return 900,000

Less: Interest income 800,000
Remeasurement gain on plan assets 100,000
Gain on decrease of PBO 200,000
Total remeasurement gain 300,000
Benefit expense (2M + 600 - 800 + 300) 2,100,000
Net Defined Benefit Cost - 1,800,000
Less: Contributions 1,200,000
Credit adjustment to Prepaid Pension Cost 1/1 - 600,000
Prepaid pension cost balance 500,000
Accrued pension cost 12/31 - 100,000 C
Shorter than 12 year life of equipment