A property developer sells a building to a company which has little cash but is willing to
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A property developer sells a building to a company which has little cash but is willing to exchange vacant land which it owns at a sought-after location. An independent valuer assesses the vacant land at £5,000,000 and on the basis of that the government charges the recipient £50,000 as land transfer taxes. Legal fees of £5,000 are incurred by the property developer. How much should be recorded as revenue and why?
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Amount to be recorded as revenue 50000 The amou...View the full answer
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Related Book For
Financial Accounting And Reporting
ISBN: 9781292255996
19th Edition
Authors: Barry Elliott, Jamie Elliott
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