Answered: cost of land

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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on Knight Company made the following acquisitions during the year Purchased for P5,400,000 , excluding appraiser fee of P100,000 , a warehouse building and the land on which it is located The land had an appraised value of P3,000,000 and original cost of 100, 000 . The building had an appraised value of P2,000,000 and original cost of P2,800,000 . Purchased an office building and the land on which it is located for P7,500,000 and assumed an existing P2,500,000 mortgage . For realty tax purposes , the property is assessed at 600, 000 , 60 % of which is allocated to the land . What is the total cost of land ?

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