On April 1, 2020 ABC Co. purchased a tract of land as a factory site for P195,500. An existing building on the property was razed and construction was begun on a new factory building on May 1, 2020. Additional data are available as follows: Cost of razing old building: P35,000 Title insurance and legal fees to purchase land:P12,500 Architect's fees: P47,500 New building construction cost: P985,000 The recorded cost of the completed factory building should be * P1,030,000 P1,032,500 P1,045,000 P1,067,500 answer not given
On April 1, 2020 ABC Co. purchased a tract of land as a factory site for P195,500. An existing building on the property was razed and construction was begun on a new factory building on May 1, 2020. Additional data are available as follows: Cost of razing old building: P35,000 Title insurance and legal fees to purchase land:P12,500 Architect's fees: P47,500 New building construction cost: P985,000 The recorded cost of the completed factory building should be * P1,030,000 P1,032,500 P1,045,000 P1,067,500 answer not given
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 38P
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On April 1, 2020 ABC Co. purchased a tract of land as a factory site for P195,500. An existing building on the property was razed and construction was begun on a new factory building on May 1, 2020. Additional data are available as follows: Cost of razing old building: P35,000 Title insurance and legal fees to purchase land:P12,500 Architect's fees: P47,500 New building construction cost: P985,000 The recorded cost of the completed factory building should be *
P1,030,000
P1,032,500
P1,045,000
P1,067,500
answer not given
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