1. On January 1, 2018 Karen Company acquired a land and building on a cash basis...

 

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1. On January 1, 2018 Karen Company acquired a land and building on a cash basis for Php 800,000. Appraised values of the land and building are Php 200,000 and Php 300,000, respectively. Additional cost incurred is as follows: Commission paid to broker Nonrefundable sales tax Php 80,000 40,000 100,000 Labor cost on renovation of the building Demolition Cost on some of the portion of the building 60,000 Proceeds from sale of demolition scrap 15,000 Required: Based on the above facts, answer the following: How much is the cost of land How much is the cost of building 1. On January 1, 2018 Karen Company acquired a land and building on a cash basis for Php 800,000. Appraised values of the land and building are Php 200,000 and Php 300,000, respectively. Additional cost incurred is as follows: Commission paid to broker Nonrefundable sales tax Php 80,000 40,000 100,000 Labor cost on renovation of the building Demolition Cost on some of the portion of the building 60,000 Proceeds from sale of demolition scrap 15,000 Required: Based on the above facts, answer the following: How much is the cost of land How much is the cost of building

Answer rating: 100% (QA)

a The cost of land is Php 200000 which is the appraised value of the land b The ... View the full answer