On January 1, 2022, an SME acquired a building for P10,450,000 including P500,000 nonrefundable purchase taxes. The purchase agreement provided for payment to be made in full on December 31, 2022. Legal fees of P220,000 were incurred in acquiring the building and paid on January 1, 2014. The building is held to earn lease rentals and for capital appreciation. The discount rate is 10%. What is the initial cost of the investment property? *

On January 1, 2022, an SME acquired a building for P10,450,000 including P500,000 nonrefundable purchase taxes. The purchase agreement provided for payment to be made in full on December 31, 2022. Legal fees of P220,000 were incurred in acquiring the building and paid on January 1, 2014. The building is held to earn lease rentals and for capital appreciation. The discount rate is 10%. What is the initial cost of the investment property? *

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 75P

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