GALING Co. acquired a building on March 1, 2021. The costs related to the acquisition are as follows: Purchase price: P7,000,000; Options: P300,000 (of which P100,000 is incurred on a building which is not acquired) Repairs of P500,000 which consists of renovation, remodeling of office space and new partitions before occupying the building. How much should be recorded as cost of the building? a. P7,800,000 b.P7,700,000 c.P7,500,000 d. P7,300,000
GALING Co. acquired a building on March 1, 2021. The costs related to the acquisition are as follows: Purchase price: P7,000,000; Options: P300,000 (of which P100,000 is incurred on a building which is not acquired) Repairs of P500,000 which consists of renovation, remodeling of office space and new partitions before occupying the building. How much should be recorded as cost of the building? a. P7,800,000 b.P7,700,000 c.P7,500,000 d. P7,300,000
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 4E: Determination of Acquisition Cost In January 2019, Cordova Company entered into a contract to...
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GALING Co. acquired a building on March 1, 2021. The costs related to the acquisition are as follows: Purchase price: P7,000,000; Options: P300,000 (of which P100,000 is incurred on a building which is not acquired) Repairs of P500,000 which consists of renovation, remodeling of office space and new partitions before occupying the building. How much should be recorded as cost of the building?
a. P7,800,000
b.P7,700,000
c.P7,500,000
d. P7,300,000
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