1. On January 1, 2018, Karen Company received a land as donation from Klaire Company. The...

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1. On January 1, 2018, Karen Company received a land as donation from Klaire Company. The fair value of the land amounted to Php 4,000,000 and a registration and transfer of title cost of Php 40,000 were incurred by Karen Company. Required: Based on the above facts, answer the following: 1. Assuming that Klaire Company is an unrelated corporation with no condition to the donation, how much is the cost of the equipment? 2. Assuming that Klaire Company is a shareholder, how much is the cost of the equipment? 1. On January 1, 2018, Karen Company received a land as donation from Klaire Company. The fair value of the land amounted to Php 4,000,000 and a registration and transfer of title cost of Php 40,000 were incurred by Karen Company. Required: Based on the above facts, answer the following: 1. Assuming that Klaire Company is an unrelated corporation with no condition to the donation, how much is the cost of the equipment? 2. Assuming that Klaire Company is a shareholder, how much is the cost of the equipment?

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