On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which it is located. The following data were available concerning the property: Current Appraised Original Cost Value Land P2,200,000 P1,800,000 Warehouse P3,300,000 P3,000,000 P5,500,000 P4,800,000 Total At what amount should the warehouse be recorded?
On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which it is located. The following data were available concerning the property: Current Appraised Original Cost Value Land P2,200,000 P1,800,000 Warehouse P3,300,000 P3,000,000 P5,500,000 P4,800,000 Total At what amount should the warehouse be recorded?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which it is located. The following data
were available concerning the property:
Current Appraised
Original Cost
Value
Land
P2,200,000
P1,800,000
Warehouse
P3,300,000
P3,000,000
P5,500,000
P4,800,000
Total
At what amount should the warehouse be recorded?
Transcribed Image Text:On December 31, 2021, Purple Company sold a building, receiving as a consideration a P4,000,000 non-interest bearing note due in three
years. The building costs P3,800,000 and the accumulated depreciation was P1,600,000 at the date of sale. The prevailing rate of interest
for a note of this type was 12%.
How much gain or loss should Purple report on the sale of the asset?
O 988,776 loss
O 1,800,000 gain
O 647,121 gain
O 988,776 gain
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