Diana Company is now a growing company. An acquisition of land and construction of a new building was undertaken. The following information relates to the scenario: Land, at purchase price, P700,000 Legal fees related to land purchase, P45,000 Full construction cost of the new building, P5,780,000 Professional fees paid to the architect, P100,000 Sale of scrap materials from the old building previous situated in the land, P60,000 Demolition cost of old building for the construction of the new building, P90,000 How much is the cost of land? Cost of building?
Diana Company is now a growing company. An acquisition of land and construction of a new building was undertaken. The following information relates to the scenario: Land, at purchase price, P700,000 Legal fees related to land purchase, P45,000 Full construction cost of the new building, P5,780,000 Professional fees paid to the architect, P100,000 Sale of scrap materials from the old building previous situated in the land, P60,000 Demolition cost of old building for the construction of the new building, P90,000 How much is the cost of land? Cost of building?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...
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Diana Company is now a growing company. An acquisition of land and construction of a new building was undertaken. The following information relates to the scenario:
Land, at purchase price, P700,000
Legal fees related to land purchase, P45,000
Full construction cost of the new building, P5,780,000
Professional fees paid to the architect, P100,000
Sale of scrap materials from the old building previous situated in the land, P60,000
Demolition cost of old building for the construction of the new building, P90,000
How much is the cost of land? Cost of building?
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