Isabela Company commercial operations at the beginning of the current year. The following costs are incurred by the entity during the current year: Option fee for land acquired 10, 000 Option fee for land not acquired 10, 000 Taxes in arrears on building on land 50, 000 Payment for land 1, 000, 000 Demotion of old building on land, net of salvage of P10, 000 100, 000 Architect fee 230, 000 Payment to city hall for approval of building construction 120, 000 Contract price for factory building 5, 000, 000 Safety fence around construction site 35, 000 Safety inspection on building 30, 000 Removal of safety fence after completion of factory building 20, 000 New fence surrounding the factory 80, 000 Driveways, parking bays and safety lighting 550, 000 a. How much is the cost of Land?________________________ b. How much is the cost of factory building?___________________________ c. what is the rules in solving this problem?
Isabela Company commercial operations at the beginning of the current year. The following
costs are incurred by the entity during the current year:
Option fee for land acquired 10, 000
Option fee for land not acquired 10, 000
Taxes in arrears on building on land 50, 000
Payment for land 1, 000, 000
Demotion of old building on land, net of salvage of P10, 000 100, 000
Architect fee 230, 000
Payment to city hall for approval of building construction 120, 000
Contract price for factory building 5, 000, 000
Safety fence around construction site 35, 000
Safety inspection on building 30, 000
Removal of safety fence after completion of factory building 20, 000
New fence surrounding the factory 80, 000
Driveways, parking bays and safety lighting 550, 000
a. How much is the cost of Land?________________________
b. How much is the cost of factory building?___________________________
c. what is the rules in solving this problem?
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