Tteokguk Foundation, a governmental unit, owned an idle parcel of real estate consisting of land and factory building. Tteokguk gave the title to this realty to Jangjorim Company as an incentive for a condition that Jangjorim to establish the business operations in the area. Jangjorim paid nothing to this realty which had a fair market value of P2,000,000 at the date of grant. How would Jangjorim record this non-monetary transaction?
Tteokguk Foundation, a governmental unit, owned an idle parcel of real estate consisting of land and factory building. Tteokguk gave the title to this realty to Jangjorim Company as an incentive for a condition that Jangjorim to establish the business operations in the area. Jangjorim paid nothing to this realty which had a fair market value of P2,000,000 at the date of grant. How would Jangjorim record this non-monetary transaction?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions
Section: Chapter Questions
Problem 10CE
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Tteokguk Foundation, a governmental unit, owned an idle parcel of real estate consisting of land and factory building. Tteokguk gave the title to this realty to Jangjorim Company as an incentive for a condition that Jangjorim to establish the business operations in the area. Jangjorim paid nothing to this realty which had a fair market value of P2,000,000 at the date of grant. How would Jangjorim record this non-monetary transaction?
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