ABC Corp purchased land and building at a lump price of P6M. ABC demolished the building and constructed a new one. Cost of demolition is P30,000 and sold salvaged materials from the demolished building for P7,500. ABC also incurred the following additional costs: Legal fees in titling the land, P10,000 Options paid for the land and building, P3,000 Payment to tenants to vacate the place, P6,000 Construction materials, labor and overhead P4,250,000 Fair values of the land and building were P2.5M and P5M respectively. How much is the cost of the NEW building? PPE intermediate accounting
ABC Corp purchased land and building at a lump price of P6M. ABC demolished the building and constructed a new one. Cost of demolition is P30,000 and sold salvaged materials from the demolished building for P7,500. ABC also incurred the following additional costs: Legal fees in titling the land, P10,000 Options paid for the land and building, P3,000 Payment to tenants to vacate the place, P6,000 Construction materials, labor and overhead P4,250,000 Fair values of the land and building were P2.5M and P5M respectively. How much is the cost of the NEW building? PPE intermediate accounting
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Corp purchased land and building at a lump price of P6M. ABC demolished the building and constructed a new one. Cost of demolition is P30,000 and sold salvaged materials from the demolished building for P7,500. ABC also incurred the following additional costs:
Legal fees in titling the land, P10,000
Options paid for the land and building, P3,000
Payment to tenants to vacate the place, P6,000
Construction materials, labor and overhead P4,250,000
Fair values of the land and building were P2.5M and P5M respectively.
How much is the cost of the NEW building?
PPE intermediate accounting
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