Empress Corporation had the following property acquisitions during the year 2018 October 1, 2018 , Empress Corporation issued 50,000 shares of the P25 par treasury ordinary share for a parcel of land to be held for a future plant site. The treasury shares were acquired by Empress at a cost of P30 per share Empress' ordinary share had a fair market value of P40 per share on October 1, 2018. Empress received P50,000 from the sale of scrap when an existing structure on the site was razed . On November 30, 2018Empress received land from a major shareholder as an inducement to locate company office in the cityNo payment was required but the entity paid P50,000 for legal expenses for the land transfer. The land is fairly valued at P1,200,000 What is the total increase in land as a result of the acquisitions?
Empress Corporation had the following property acquisitions during the year 2018 October 1, 2018 , Empress Corporation issued 50,000 shares of the P25 par treasury ordinary share for a parcel of land to be held for a future plant site. The treasury shares were acquired by Empress at a cost of P30 per share Empress' ordinary share had a fair market value of P40 per share on October 1, 2018. Empress received P50,000 from the sale of scrap when an existing structure on the site was razed . On November 30, 2018Empress received land from a major shareholder as an inducement to locate company office in the cityNo payment was required but the entity paid P50,000 for legal expenses for the land transfer. The land is fairly valued at P1,200,000 What is the total increase in land as a result of the acquisitions?
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 3P
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Empress Corporation had the following property acquisitions during the year 2018 October 1, 2018 , Empress Corporation issued 50,000 shares of the P25 par treasury ordinary share for a parcel of land to be held for a future plant site. The treasury shares were acquired by Empress at a cost of P30 per share Empress' ordinary share had a fair market value of P40 per share on October 1, 2018. Empress received P50,000 from the sale of scrap when an existing structure on the site was razed . On November 30, 2018Empress received land from a major shareholder as an inducement to locate company office in the cityNo payment was required but the entity paid P50,000 for legal expenses for the land transfer. The land is fairly valued at P1,200,000 What is the total increase in land as a result of the acquisitions?
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