Roberto Company purchased a P4,000,000 tract of land as an investment property. The entity razed an old building on the property. Demolition of old building 200,000 Proceeds from sale of salvaged materials Legal fees for purchase contract and recording ownership Title guarantee insurance Payment of property taxes in arrears Option paid for an alternative land not acquired Special assessment for city improvements 20,000 150,000 50,000 100,000 30,000 120,000 What is the cost of the land? A. 4,600,000 B. 4,420,000 C. 4,480,000 D. 4,500,000

Roberto Company purchased a P4,000,000 tract of land as an investment property. The entity razed an old building on the property. Demolition of old building 200,000 Proceeds from sale of salvaged materials Legal fees for purchase contract and recording ownership Title guarantee insurance Payment of property taxes in arrears Option paid for an alternative land not acquired Special assessment for city improvements 20,000 150,000 50,000 100,000 30,000 120,000 What is the cost of the land? A. 4,600,000 B. 4,420,000 C. 4,480,000 D. 4,500,000

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter2: Asset And Liability Valuation And Income Recognition

Section: Chapter Questions

Problem 11PC: Costs to Be Included in Historical Cost Valuation. At a cost of 200,000, Assume In-N-Out Burger...

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