ABC Company acquired a property for speculation purposes with the intention of selling it at a higher price in the long-term. The property was acquired at a cash price of P3,000,000. The property has P100,000 unpaid real property tax assumed by ABC Company. In addition, the company also paid the following transaction costs: broker's commission of P20,000 and registration cost of P35,000. How much ABC should record as Investment Property?

ABC Company acquired a property for speculation purposes with the intention of selling it at a higher price in the long-term. The property was acquired at a cash price of P3,000,000. The property has P100,000 unpaid real property tax assumed by ABC Company. In addition, the company also paid the following transaction costs: broker's commission of P20,000 and registration cost of P35,000. How much ABC should record as Investment Property?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 44P

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