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2. Buko Co. purchased land and building by paying P5,000,000 and assuming a mortgage of P1,000,000. The land and building have fair values of P2,500,000
2. Buko Co. purchased land and building by paying P5,000,000 and assuming a mortgage of P1,000,000. The land and building have fair values of P2,500,000 and P5,000,000, respectively. Buko Co. will use the building as its new office. Buko Co. also incurred the following costs: Land registration costs Payment to tenants to vacate premises Option paid on the land and building Option paid on similar land and building not acquired Broker's fee on the land and building 4,000 4,500 3,000 1,500 7,500 Unpaid real estate taxes prior to acquisition date assumed by Buko Co.-assessed on land Real estate taxes after April 1, 20x1 Repairs and renovation costs before the building is occupied Repair costs after the building is occupied 15,000 10,000 20,000 25,000 Requirement: Allocate the costs
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