6. Cost of option to the land – P20,000 7. Legal fees and other expenditures for establishing clean title – P100,000 8. Mortgage assumed: Total mortgage – P2,000,000, Remaining mortgage as of acquisition date – P 500,000
6. Cost of option to the land – P20,000 7. Legal fees and other expenditures for establishing clean title – P100,000 8. Mortgage assumed: Total mortgage – P2,000,000, Remaining mortgage as of acquisition date – P 500,000
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter6: Losses And Loss Limitations
Section: Chapter Questions
Problem 5CE
Related questions
Question
How much should be recorded as the purchase price of the
individual PPE items:
For items 6 to 10, identify the amount to be include as Land
6. Cost of option to the land – P20,000
7. Legal fees and other expenditures for establishing clean title
– P100,000
8. Mortgage assumed: Total mortgage – P2,000,000,
Remaining mortgage as of acquisition date – P 500,000
9. Real property tax not paid by seller and assumed by the
entity, P50,000 due January of current year. Buyer‐entity
acquired the land on April 30 of the current year.
10. Special assessment paid to the government – P300,000
11. Fence and landscaping – P500,000
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