The following costs were incurred by HEHE, Inc.. during 2020: July 1 Organization fees P120,000 July 2 Land site and old building 1,890,000 July 3 Option payments 250,000 July 20 Broker’s fees on property acquired 110,400 July 30 Cost of remodeling the building 60,000 August 30 Salaries of executives 360,000 December 21 Real property taxes 240,000 Additional information: The building acquired had a fair value of P450,000 while the land was currently appraised at P1,800,000 P50,000 of the option money paid were for properties not acquired. The executives had no participation on the remodeling of the building The property taxes were for the 2020 calendar year. How much is the cost of land?
The following costs were incurred by HEHE, Inc.. during 2020: July 1 Organization fees P120,000 July 2 Land site and old building 1,890,000 July 3 Option payments 250,000 July 20 Broker’s fees on property acquired 110,400 July 30 Cost of remodeling the building 60,000 August 30 Salaries of executives 360,000 December 21 Real property taxes 240,000 Additional information: The building acquired had a fair value of P450,000 while the land was currently appraised at P1,800,000 P50,000 of the option money paid were for properties not acquired. The executives had no participation on the remodeling of the building The property taxes were for the 2020 calendar year. How much is the cost of land?
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 2CE
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Question
The following costs were incurred by HEHE, Inc.. during 2020:
|
July 1 |
Organization fees |
P120,000 |
|
July 2 |
Land site and old building |
1,890,000 |
|
July 3 |
Option payments |
250,000 |
|
July 20 |
Broker’s fees on property acquired |
110,400 |
|
July 30 |
Cost of remodeling the building |
60,000 |
|
August 30 |
Salaries of executives |
360,000 |
|
December 21 |
Real property taxes |
240,000 |
Additional information:
- The building acquired had a fair value of P450,000 while the land was currently appraised at P1,800,000
- P50,000 of the option money paid were for properties not acquired.
- The executives had no participation on the remodeling of the building
- The property taxes were for the 2020 calendar year.
How much is the cost of land?
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