On January 1, 20X1, the city government of Faraway donated property to Amazing, Inc., in return for the commitment from the company that it would build a manufacturing plant on the site and employ residents of the city in the plant. Information on the donated land appears below. Cost of the land paid by Faraway = $1,000,000 Fair valiue of the land at time of donation = $1,865,000 What is the donation revenue recognized by Amazing, Inc.?
On January 1, 20X1, the city government of Faraway donated property to Amazing, Inc., in return for the commitment from the company that it would build a manufacturing plant on the site and employ residents of the city in the plant. Information on the donated land appears below. Cost of the land paid by Faraway = $1,000,000 Fair valiue of the land at time of donation = $1,865,000 What is the donation revenue recognized by Amazing, Inc.?
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 5RE
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On January 1, 20X1, the city government of Faraway donated property to Amazing, Inc., in return for the commitment from the company that it would build a manufacturing plant on the site and employ residents of the city in the plant. Information on the donated land appears below.
Cost of the land paid by Faraway = $1,000,000
Fair valiue of the land at time of donation = $1,865,000
What is the donation revenue recognized by Amazing, Inc.?
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