FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Use the PFRS for SMEs) On 1 January 20X1 an entity acquired a building for ₱95,000, including ₱5,000 non-refundable purchase taxes. The purchase agreement provided for payment to be made in full on 31 December 20X1. Legal fees of ₱2,000 were incurred in acquiring the building and paid on 1 January 20X1. The building is held to earn lease rentals and for capital appreciation. An appropriate discount rate is 10 per cent per year. The entity shall measure the initial cost of the building at:
a. ₱88,364
b. ₱97,000
c. ₱102,000
d. ₱107,000
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