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? Note: is Sale of Scrap Materials from the old building previous situated in the land under “Land” or “Building” - why? If what is given is “sale of scrap from old building” - that is under “Land” cost or “Building” cost?

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? Note: is Sale of Scrap Materials from the old building previous situated in the land under “Land” or “Building” - why? If what is given is “sale of scrap from old building” - that is under “Land” cost or “Building” cost?

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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