Air Indah Bhd purchases a landed property at a cost of RM 200,000,000. In the sale and purchases agreement, RM40,000,000 of the purchase price is attributed to the land portion. The building consists of 20 floors of equal Four floors are used for administrative purposes and the balance let out to tenants. Air Indah Bhd also incurs the following costs in connection with the purchase of the property. RM'000 Legal and agency fees 6,000 Soft launching cost to market for tenants 1,000

Air Indah Bhd purchases a landed property at a cost of RM 200,000,000. In the sale and purchases agreement, RM40,000,000 of the purchase price is attributed to the land portion. The building consists of 20 floors of equal Four floors are used for administrative purposes and the balance let out to tenants. Air Indah Bhd also incurs the following costs in connection with the purchase of the property. RM'000 Legal and agency fees 6,000 Soft launching cost to market for tenants 1,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sisig Corp. purchases a building with land at a cost of P100,000,000. In the sale and purchase agreement, P20,000,000 of the purchase price is attributed to the land. The building consists of 12 floors of equal space. Sisig Corp. also incurs the following costs in connection with the purchase of the property: legal and agency fees, P3,000,000; soft-launching cost to market for tenants; P500,000 and administrative expenses, P200,000.Assuming Sisig Corp. cannot sell the floors separately and uses one-half of the ground floor or 5% of the entire building for administrative purposes, and the rest of the floor area are let out to tenants, at what amount the investment property should be initially recognized?
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