Samyang Inc. acquired a land and an old unusable building for P7,500,000. Samyang contracted Busan Contractors to construct a new building with a total contract price of P10,850,000. Architect fees paid was P473,000. Samyang incurred costs to demolish the old unusable building of P288,000. Proceeds from scrap materials from the old building was P22,000. How much is the cost of land?

Samyang Inc. acquired a land and an old unusable building for P7,500,000. Samyang contracted Busan Contractors to construct a new building with a total contract price of P10,850,000. Architect fees paid was P473,000. Samyang incurred costs to demolish the old unusable building of P288,000. Proceeds from scrap materials from the old building was P22,000. How much is the cost of land?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...

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M20.
D2.