ET owns a tract of land which it purchased in 2011 for P100,000. The land is...
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ET owns a tract of land which it purchased in 2011 for P100,000. The land is held as a future plant site and has a fair market value of P140,000 on July 1, 2014. RS also owns a tract of land held as a future plant site. RS paid P180,000 for the land in 2013 and the land has a fair market value of P200,000 on July 1, 2014. On this date, ET exchanged its land and paid P50,000 cash for the land owned by RS. At what amount should ET record the land acquired in the exchange? Answer: ET owns a tract of land which it purchased in 2011 for P100,000. The land is held as a future plant site and has a fair market value of P140,000 on July 1, 2014. RS also owns a tract of land held as a future plant site. RS paid P180,000 for the land in 2013 and the land has a fair market value of P200,000 on July 1, 2014. On this date, ET exchanged its land and paid P50,000 cash for the land owned by RS. At what amount should ET record the land acquired in the exchange? Answer:
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On July 1 2014 ETs parcel of land had a fair market value o... View the full answer
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
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