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 P1,400,000 The building had an appraised value of P2,000, 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 P9.600,000,60\% of which is allocated to the land What is the total cost of building?
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 P1,400,000 The building had an appraised value of P2,000, 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 P9.600,000,60\% of which is allocated to the land What is the total cost of building?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 P1,400,000 The building had an appraised value of P2,000, 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 P9.600,000,60\% of which is allocated to the land What is the total cost of building?
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