he following costs were incurred by ABCDEFGH, Inc.. during 2020: July 1Organization feesP120,000July 2Land site and old building1,890,000July 3Option payments250,000July 20Broker’s fees on property acquired110,400July 30Cost of remodeling the building60,000August 30Salaries of executives360,000December 21Real property taxes240,000 Additional information:The building acquired had a fair value of P450,000 while the land was currently appraised at P1,800,000P50,000 of the option money paid were for properties not acquired.The executives had no participation on the remodeling of the buildingThe property taxes were for the 2020 calendar year. How much is the cost of land?Group of answer choices1,512,0001,856,3202,288,0001,992,320

Cost of land is only ascertain out of total land and building cost acquired by ABCHEFGH Inc. We will…

Answered: he following costs were incurred by…

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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he following costs were incurred by ABCDEFGH, Inc.. during 2020:

July 1	Organization fees	P120,000
July 2	Land site and old building	1,890,000
July 3	Option payments	250,000
July 20	Broker’s fees on property acquired	110,400
July 30	Cost of remodeling the building	60,000
August 30	Salaries of executives	360,000
December 21	Real property taxes	240,000

Additional information:

The building acquired had a fair value of P450,000 while the land was currently appraised at P1,800,000
P50,000 of the option money paid were for properties not acquired.
The executives had no participation on the remodeling of the building
The property taxes were for the 2020 calendar year.

How much is the cost of land?

Group of answer choices

1,512,000

1,856,320

2,288,000

1,992,320

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