Old Room Co. purchased land and building for a lump-sum price of $48,000,000. The existing building will be demolished and a new building will be constructed. Old Room incurred the following additional costs: Title guarantee 80,000 Option paid for the land and old building acquired 24,000 Payments to tenants to vacate premises 48,000 Cost of razing the old building 240,000 Construction cost of new building (completed) 34,000,000 • The land and old building have fair values of P20,000,000 and $40,000,000, respectively. • Some salvaged wood planks from the demolition were used as wall panels in the new building. Old Room estimates that the salvaged wood planks have a fair value of P120,000. The other salvaged materials were sold for $60,000. How much are the allocated costs of the land and the new building? 16,864,000 (Land) 33,780,000 (New Building) 16,104,000 (Land) 34,180,000 (New Building) 15,980,000 (Land) 36,670,000 (New Building) 16,104,000 (Land) 34,810,000 (New Building)
Old Room Co. purchased land and building for a lump-sum price of $48,000,000. The existing building will be demolished and a new building will be constructed. Old Room incurred the following additional costs: Title guarantee 80,000 Option paid for the land and old building acquired 24,000 Payments to tenants to vacate premises 48,000 Cost of razing the old building 240,000 Construction cost of new building (completed) 34,000,000 • The land and old building have fair values of P20,000,000 and $40,000,000, respectively. • Some salvaged wood planks from the demolition were used as wall panels in the new building. Old Room estimates that the salvaged wood planks have a fair value of P120,000. The other salvaged materials were sold for $60,000. How much are the allocated costs of the land and the new building? 16,864,000 (Land) 33,780,000 (New Building) 16,104,000 (Land) 34,180,000 (New Building) 15,980,000 (Land) 36,670,000 (New Building) 16,104,000 (Land) 34,810,000 (New Building)
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter10: Long-lived Tangible And Intangible Assets
Section: Chapter Questions
Problem 13E
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