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COMPASSION Company incurred the following costs at the beginning of the current year:
Cost of land |
1,000,000 |
Cost of building |
4,000,000 |
Remodeling and repairs prior to occupancy |
500,000 |
Escrow fee |
100,000 |
Clearing, leveling and landfill |
250,000 |
Property tax for period after the acquisition |
150,000 |
Real estate commission |
300,000 |
1. compute the cost of building
2. compute the cost of land
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- Leni Company incurred the following costs during the current year: Option fee for land acquired Option fee for land not acquired Taxes in arrears on building on land Payment for land Demolition of old building, net of salvage of P10,000 10,000 10,000 50,000 1,000,000 100,000 Architect fee 230,000 120,000 5,000,000 Payment to city hall for approval of building construction Contract price for factory building Safety fence around construction site Safety inspection on building Removal of safety fence after completion of building New fence surrounding the factory Driveways, parking bays and safety lighting 35,000 30,000 20,000 80,000 550,000 What is the cost of land and building, respectively? (Format of answer should be LAND: 1234567; BUILDING: 1234567)Isabela Company commercial operations at the beginning of the current year. The following costs are incurred by the entity during the current year: Option fee for land acquired Option fee for land not acquired Taxes in arrears on building on land Payment for land Demotion of old building on land, net of salvage of P10, 000 10, 000 10, 000 50, 000 1, 000, 000 100, 000 Architect fee 230, 000 Payment to city hall for approval of building construction Contract price for factory building Safety fence around construction site Safety inspection on building Removal of safety fence after completion of factory building New fence surrounding the factory 120, 000 5, 000, 000 35, 000 30, 000 20, 000 80, 000 Driveways, parking bays and safety lighting a. How much is the cost of Land? b. How much is the cost of factory building? 550, 000At the beginning of the current year, Township Company purchased for Php5,400,000, including appraiser's fee of Php50,000, a warehouse building and the land on which it is located. The following data were available concerning the property: Current appraised Seller's original cost value Land 2,000,000.00 1,400,000.00 Building 3,000,000.00 2,800,000.00 Total 5,000,000.00 4,200,000.00 Township should record the Land at:
- These expenditures were incurred by Blossom Company in purchasing land: cash price $55,000, assumed accrued property taxes $4,500, attorney's fees $2,100, real estate broker's commission $3,000, and clearing and grading $4,000. What is the cost of the land? The cost of the land 73900Investment Property: Subsequent Measurement: A building is accounted as Investment Property. It has a cost of P5,000,000, useful life of 15 years and an estimated residual value of P500,000. It had fair values as follows: Year end Fair Value 1 P4,200,000 2 P4,800,000 If the entity used the cost model, compute for the following: a. Annual Depreciation Expense b. Carrying value as of the end of Year 1 c. Carrying value as of the end of Year 2 If the entity used the fair value model, compute for the following: d. Gain/(Loss) from change in fair value – Year 1 e. Gain/(Loss) from change in fair value – Year 2 f. Carrying value as of the end of Year 2At the beginning of the current year, Diamond Company purchased a tract of land for P 12,000,000.The entity incurred additional cost of P3,000,000 during the remainder of the year in subdividing the land for sale.Of the tract acreage, 70% was subdivided into residential lots and 30% was conveyed to the city for roads and a park. Lot class Number of lots Sale price per lot A 100 240,000B 100 160,000C 200 100,000 Using the relative sales value method, what amount of cost should be allocated to Class A lots?
- BCareful incurred the following expenditures in 2020: Purchase of land P15,600,000 Land survey 208,000 Fees for search of title for land 24,000 Building construction permit fee 140,000 Temporary quarters for construction workers 430,000 Payments to tenants of the old building 184,000 Cost to raze the old building 940,000 Excavation of land 400,000 Special assessment of the government for road projects 80,000 Dividends that should have been earned had the money used for construction been invested in equity instruments 200,000 Damages awarded to injuries sustained in construction where no insurance is carried 336,000 Cost of construction 78,000,000 Cost of paving parking lot, driveway and sidewalks 1,600,000 Profit on construction, as the difference between the appraised value of the asset after construction and actual costs incurred 1,900,000 List price of machinery and equipment purchased…BCareful incurred the following expenditures in 2020: Purchase of land P15,600,000 Land survey 208,000 Fees for search of title for land 24,000 Building construction permit fee 140,000 Temporary quarters for construction workers 430,000 Payments to tenants of the old building 184,000 Cost to raze the old building 940,000 Excavation of land 400,000 Special assessment of the government for road projects 80,000 Dividends that should have been earned had the money used for construction been invested in equity instruments 200,000 Damages awarded to injuries sustained in construction where no insurance is carried 336,000 Cost of construction 78,000,000 Cost of paving parking lot, driveway and sidewalks 1,600,000 Profit on construction, as the difference between the appraised value of the asset after construction and actual costs incurred 1,900,000 List price of machinery and equipment purchased…Calculate and allocate basis for the following problems. 1. A property is acquired for a purchase price of $230,000 cash plus acquisition costs of $20,000. The tax assessment for this property is as follows: Assessed Value Land Improvements Total assessments $40,000 160,000 $200,000 a. What is the acquisition basis for this property? b. What is the allocation for land? c. What is the allocation for improvements?