Goldmine purchased a piece of land and a building for RM20 million. Apart from the purchase...

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Goldmine purchased a piece of land and a building for RM20 million. Apart from the purchase price. Goldmine has incurred the following expenditures in relation to the purchase of land and building: Legal fees to draft the contract Title insurance Property taxes for the period after the acquisition (pro-rated) Municipal council transfer fees RM 6000 12000 25000 7000 Required: a) Determine the initial measurement of land and building. b) As above, assume that soon after acquisition, Goldmine demolished the building at the cost of RM42000 and the scrapped materials were sold for RM8000 cash. Other cost incurred was for clearing and restoring the land in preparation for the construction of new building at RM 73000. Determine the initial measurement of land and building. Goldmine purchased a piece of land and a building for RM20 million. Apart from the purchase price. Goldmine has incurred the following expenditures in relation to the purchase of land and building: Legal fees to draft the contract Title insurance Property taxes for the period after the acquisition (pro-rated) Municipal council transfer fees RM 6000 12000 25000 7000 Required: a) Determine the initial measurement of land and building. b) As above, assume that soon after acquisition, Goldmine demolished the building at the cost of RM42000 and the scrapped materials were sold for RM8000 cash. Other cost incurred was for clearing and restoring the land in preparation for the construction of new building at RM 73000. Determine the initial measurement of land and building.

Answer rating: 100% (QA)

a To determine the initial measurement of land and building we need to add up the purchase price and ... View the full answer