Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC Ltd real estate situation is as follows (Unit: USD) On January 1, 20X8, purchased land to build a house for rent, purchase price 100

ABC Ltd real estate situation is as follows (Unit: USD) On January 1, 20X8, purchased land to build a house for rent, purchase price 100 million paid by bank transfer. Registration fee of 5 million has been paid. Brokerage commission: 1 million. In 20X8, construct a building on the purchased land. Construction costs are as follows: + Labor: 2 million, (including 200,000 incurred to fix technical errors caused by workers caused by poor profession) +Materials: 8 million (including 1 million materials damaged due to technical errors mentioned above) +Other costs necessary for construction: 2 million. The building was completed on November 30, 20X8. Because there weren't enough tenants, ABC suffered a loss 500,000 in the first month of operation. It is expected that it will take until August 20X9 to find it enough customers for the building to break even, and from now on, losses are expected to continue 2 million. At the end of the year, ABC spent 500,000 to pay land tax for the 20X8 fiscal year. Requirement: Determine the original price of the real estate

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Anti Money Laundering Governance Risk Management And Compliance GRC Book 4

Authors: Uwem Essia, Kester Ehiwario

1st Edition

B0BBXZ6GKR, 979-8848908473

More Books

Students also viewed these Accounting questions

Question

6. Describe why communication is vital to everyone

Answered: 1 week ago