BT21 Co. was incorporated on January 1, 2021. The following were the transactions during the year: • Total consideration from share issuances amounted to ₱4,000,000. • A land and building were acquired through a lump sum payment of ₱800,000. A mortgage amounting to ₱200,000 was assumed on the land and building. • Total payments of ₱160,000 were made during the year on the mortgage assumed on the land and building. The payments are inclusive of interest amounting to ₱20,000. • Additional capital of ₱400,000 was obtained through bank loans. None of the bank loans were paid during the year. Half of the bank loans required a secondary mortgage on the land and building. • There is no accrued interest as of year-end. • Dividends declared during the year but remained unpaid amounted to ₱120,000. • No other transactions during the year affected liabilities. • Retained earnings as of December 31, 2021 is ₱240,000. How much is the profit for the year?
BT21 Co. was incorporated on January 1, 2021. The following were the transactions during the year:
• Total consideration from share issuances amounted to ₱4,000,000.
• A land and building were acquired through a lump sum payment of ₱800,000. A mortgage amounting to ₱200,000 was assumed on the land and building.
• Total payments of ₱160,000 were made during the year on the mortgage assumed on the land and building. The payments are inclusive of interest amounting to ₱20,000.
• Additional capital of ₱400,000 was obtained through bank loans. None of the bank loans were paid during the year. Half of the bank loans required a secondary mortgage on the land and building.
• There is no accrued interest as of year-end.
• Dividends declared during the year but remained unpaid amounted to ₱120,000.
• No other transactions during the year affected liabilities.
•
How much is the profit for the year?
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