1. During the year, Agency XYZ entered into a contract with a third party for the construction of a new building.The contract price was P15 million. The new building was not finished on the agreed deadline due to lack ofequipment needed for the construction. The contractor was charged for liquidation damages worth P500,000.The agency director also wanted its old building to be connected to the new building for the convenience of itsemployees and also of the public. Letters were sent out to interested third parties for this project and a datewas set up for the bidding. Estimated cost of the project is P5 million.How much is the cost of the building?

solution : calculation of cost of building Contract price of the building P15 million…

Answered: 1. During the year, Agency XYZ entered…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges

Section: Chapter Questions

Problem 85P

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