Elirie Company, bought a 10-hectare land for P5,850,000 to be improved, subdivided into lots and eventually sold. Taxes and documentation expenses on the transfer of the property amounted to P80,000. Lot class Number of lots Selling price per lot Total clearing cost A 10 100,000 None B 20 80,000 100,000 300,000 70,000 60,000 40 D 50 800,000 14. What amount should be allocated as total cost of Class B lots under the relative sales price method?
Elirie Company, bought a 10-hectare land for P5,850,000 to be improved, subdivided into lots and eventually sold. Taxes and documentation expenses on the transfer of the property amounted to P80,000. Lot class Number of lots Selling price per lot Total clearing cost A 10 100,000 None B 20 80,000 100,000 300,000 70,000 60,000 40 D 50 800,000 14. What amount should be allocated as total cost of Class B lots under the relative sales price method?
Chapter17: Property Transactions: § 1231 And Recapture Provisions
Section: Chapter Questions
Problem 40P
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