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Urban Corporation incurred costs of P12,150,000 for the purchase and preparation of land for construction of a new warehouse. These costs included the land purchase price, demolition of an old building, legal fees, and the net costs of equipment used for excavation. Day Company purchased land for P4,000,000. Applying PIC interpretations, the cost of the land should include the purchase price, legal fees for the purchase contract, and delinquent property taxes, for a total of P4,200,000. Yu Corporation

Author

Jerome Balusero

Language

EN