On February 1, 20X0, Larkin Corporation purchased a parcel of land as a factory site for P400,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 20X0. Costs incurred during this period are listed as follows: Demolition of the old building - P 25,000; Architect's fees - 35,000; Legal fees for title investigation and purchase contract - 5,000; Construction costs - 890,000; (Salvaged materials resulting from demolition were sold for P10,000.) Larkin should record the cost of the new building as
On February 1, 20X0, Larkin Corporation purchased a parcel of land as a factory site for P400,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 20X0. Costs incurred during this period are listed as follows: Demolition of the old building - P 25,000; Architect's fees - 35,000; Legal fees for title investigation and purchase contract - 5,000; Construction costs - 890,000; (Salvaged materials resulting from demolition were sold for P10,000.) Larkin should record the cost of the new building as
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 46P
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On February 1, 20X0, Larkin Corporation purchased a parcel of land as a factory site for P400,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 20X0. Costs incurred during this period are listed as follows: Demolition of the old building - P 25,000; Architect's fees - 35,000; Legal fees for title investigation and purchase contract - 5,000; Construction costs - 890,000; (Salvaged materials resulting from demolition were sold for P10,000.) Larkin should record the cost of the new building as
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