A property developer sells a building to a company which has little cash but is willing to

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A property developer sells a building to a company which has little cash but is willing to exchange vacant land which it owns at a sought-after location. An independent valuer assesses the vacant land at £5,000,000 and on the basis of that the government charges the recipient £50,000 as land transfer taxes. Legal fees of £5,000 are incurred by the property developer. How much should be recorded as revenue and why?

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Financial Accounting And Reporting

ISBN: 9781292255996

19th Edition

Authors: Barry Elliott, Jamie Elliott

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