ET owns a tract of land which it purchased in 2011 for P100,000. The land is held as a future plant site and has a fair market value of P140,000 on July 1, 2014. RS also owns a tract of land held as a future plant site. RS paid P180,000 for the land in 2013 and the land has a fair market value of P200,000 on July 1, 2014. On this date, ET exchanged its land and paid P50,000 cash for the land owned by RS. At what amount should ET record the land acquired in the exchange?

ET owns a tract of land which it purchased in 2011 for P100,000. The land is held as a future plant site and has a fair market value of P140,000 on July 1, 2014. RS also owns a tract of land held as a future plant site. RS paid P180,000 for the land in 2013 and the land has a fair market value of P200,000 on July 1, 2014. On this date, ET exchanged its land and paid P50,000 cash for the land owned by RS. At what amount should ET record the land acquired in the exchange?

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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