On July 1, 2020, ABC Incorporated accepted several office equipment from a shareholder with original cost of P2,000,000. On the same date, the items had aggregate market value totalling to P1,500,000. No entry has been made by ABC since no consideration was given up for these items. Moreover, cost incurred to recondition the donated items amounted to P100,000 and were charged to operations during the period. How much should be property be initially recognized

On July 1, 2020, ABC Incorporated accepted several office equipment from a shareholder with original cost of P2,000,000. On the same date, the items had aggregate market value totalling to P1,500,000. No entry has been made by ABC since no consideration was given up for these items. Moreover, cost incurred to recondition the donated items amounted to P100,000 and were charged to operations during the period. How much should be property be initially recognized

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges

Section: Chapter Questions

Problem 85P

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