on the land and built a new factory. Equipment was also acquired for Miller Corp. acquired a tract of land, demolished the unusable building the factory. The following inflows and outflows occurred: While searching for a suitable block of land, Miller Corp. placed an option to buy with three real estate agentS at a cost of P1,000 each. One of these blocks of land was later acquired. Payment of option fees Receipt of loan from bank Payment to settlement agent for title search, stamp duties and settlement fees P 3,000 4,000,000 100,000 Payment for property taxes in arrears on building and land 50,000 1,000,000 120,000 55,000 230,000 120,000 34,000 2,400,000 Payment for land Payment for demolition of current building on land Proceeds from sale of material from old building Payment to architect Payment to council for approval of building construction Payment for safety fence around construction site Payment to construction contractor for factory building Payment for external driveways, parking bays and safety lighting Payment for safety inspection on building Payment for equipment Payment of freight and insurance costs on delivery of equipment Payment of installation costs on equipment Payment for safety equipment surrounding equipment Payment for removal of safety fence Payment for new fence surrounding the factory Payment for advertisements about the forthcoming factory and its benefits to the local community Payment for opening ceremony 540,000 30,000 640,000 56,000 120,000 110,000 20,000 80,000 5,000 60,000 Required: cost of land, land improvements, building and Compute the equipment.
on the land and built a new factory. Equipment was also acquired for Miller Corp. acquired a tract of land, demolished the unusable building the factory. The following inflows and outflows occurred: While searching for a suitable block of land, Miller Corp. placed an option to buy with three real estate agentS at a cost of P1,000 each. One of these blocks of land was later acquired. Payment of option fees Receipt of loan from bank Payment to settlement agent for title search, stamp duties and settlement fees P 3,000 4,000,000 100,000 Payment for property taxes in arrears on building and land 50,000 1,000,000 120,000 55,000 230,000 120,000 34,000 2,400,000 Payment for land Payment for demolition of current building on land Proceeds from sale of material from old building Payment to architect Payment to council for approval of building construction Payment for safety fence around construction site Payment to construction contractor for factory building Payment for external driveways, parking bays and safety lighting Payment for safety inspection on building Payment for equipment Payment of freight and insurance costs on delivery of equipment Payment of installation costs on equipment Payment for safety equipment surrounding equipment Payment for removal of safety fence Payment for new fence surrounding the factory Payment for advertisements about the forthcoming factory and its benefits to the local community Payment for opening ceremony 540,000 30,000 640,000 56,000 120,000 110,000 20,000 80,000 5,000 60,000 Required: cost of land, land improvements, building and Compute the equipment.
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 42P
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Required:
- Compute the cost of land, land improvements, building, and equipment.
Transcribed Image Text:While searching for a suitable block of land, Miller Corp.
on the land and built a new factory. Equipment was also acquired for
Miller Corp. acquired a tract of land, demolished the unusable building
the factory.
The following inflows and outflows occurred:
placed an option to buy with three real estate agents
at a cost of P1,000 each. One of these blocks ofr
land was later acquired.
Payment of option fees
Receipt of loan from bank
Payment to settlement agent for title search, stamp
duties and settlement fees
3,000
4,000,000
100,000
Payment for property taxes in arrears on building and
land
50,000
1,000,000
120,000
55,000
230,000
120,000
34,000
2,400,000
Payment for land
Payment for demolition of current building on land
Proceeds from sale of material from old building
Payment to architect
Payment to council for approval of building construction
Payment for safety fence around construction site
Payment to construction contractor for factory building
Payment for external driveways, parking bays and
safety lighting
Payment for safety inspection on building
Payment for equipment
Payment of freight and insurance costs on delivery of
equipment
Payment of installation costs on equipment
Payment for safety equipment surrounding equipment
Payment for removal of safety fence
Payment for new fence surrounding the factory
Payment for advertisements about the forthcoming
factory and its benefits to the local community
Payment for opening ceremony
540,000
30,000
640,000
56,000
120,000
110,000
20,000
80,000
5,000
60,000
Required:
cost of land, land improvements, building and
Compute the
equipment.
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