On December 1, 2020, BTS Company purchased a P4,000,000 tract of land for a factory site. BTS razed an old building on the property and sold the materials it salvaged from the demotion. BTS incurred additional costs and realized salvage proceeds during December 31, 2020 as follows: Demolition of old building 200,000 Legal fees for purchase contract and recording ownership 150,000 Title guarantee insurance 50,000 Proceeds from sale of salvaged materials 20,000 In the December 31, 2020 statement of financial position, what should be reported as carrying amount of the land?
On December 1, 2020, BTS Company purchased a P4,000,000 tract of land for a factory site. BTS razed an old building on the property and sold the materials it salvaged from the demotion. BTS incurred additional costs and realized salvage proceeds during December 31, 2020 as follows: Demolition of old building 200,000 Legal fees for purchase contract and recording ownership 150,000 Title guarantee insurance 50,000 Proceeds from sale of salvaged materials 20,000 In the December 31, 2020 statement of financial position, what should be reported as carrying amount of the land?
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 38P
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On December 1, 2020, BTS Company purchased a P4,000,000 tract of land for a factory site. BTS razed an old
building on the property and sold the materials it salvaged from the demotion. BTS incurred additional costs and
realized salvage proceeds during December 31, 2020 as follows:
Demolition of old building 200,000
Legal fees for purchase contract
and recording ownership 150,000
Title guarantee insurance 50,000
Proceeds from sale of salvaged materials 20,000
In the December 31, 2020
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