Company acquired land and building by issuing 60,000, P10 ordinary shares. On the date of acquisition, the shares had a fair va per share and the land and building had fair value of P2,000,000 al respectively. During the year, Cavite also received land from a shareholder to far construction of a plant in the city. Cavite paid P100,000 for the lar

Company acquired land and building by issuing 60,000, P10 ordinary shares. On the date of acquisition, the shares had a fair va per share and the land and building had fair value of P2,000,000 al respectively. During the year, Cavite also received land from a shareholder to far construction of a plant in the city. Cavite paid P100,000 for the lar

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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Question

Cavite Company acquired land and building by issuing 60,00O, P100 par value,
ordinary shares. On the date of acquisition, the shares had a fair value of P150
per share and the land and building had fair value of P2,000,000 and P6,000,000
respectively.
During the year, Cavite also received land from a shareholder to facilitate the
construction of a plant in the city. Cavite paid P100,000 for the land transfer.
The land's fair value is P1,500,000.
As a result of these acquisitions, Cavite Company's equity had a net increase of

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