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 10, 000 10, 000 Taxes in arrears on building on land Payment for land Demotion of old building on land, net of salvage of P10, 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 120, 000 5, 000, 000 Safety fence around construction site 35, 000 Safety inspection on building Removal of safety fence after completion of factory building New fence surrounding the factory 30, 000 20, 000 80, 000 Driveways, parking bays and safety lighting a. How much is the cost of Land?_ 550, 000 b. How much is the cost of factory building?_

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 10, 000 10, 000 Taxes in arrears on building on land Payment for land Demotion of old building on land, net of salvage of P10, 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 120, 000 5, 000, 000 Safety fence around construction site 35, 000 Safety inspection on building Removal of safety fence after completion of factory building New fence surrounding the factory 30, 000 20, 000 80, 000 Driveways, parking bays and safety lighting a. How much is the cost of Land?_ 550, 000 b. How much is the cost of factory building?_

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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