Question
Exercise 3 (3) On 1/1/2010 the company ABC bought at auction in Koutsoupia Kissavou a plot of land together with the building that is built
Exercise 3 (3) On 1/1/2010 the company ABC bought at auction in Koutsoupia Kissavou a plot of land together with the building that is built in it instead of 108,000. The price is settled as follows: an amount of 20,000 is paid with the purchase and the balance will be paid after one year, interest-free.1 At the time of purchase the fair value of the plot was estimated at 60,000 and the building at 90,000, while its interest rate market is 10%. ABC intends to operate the building as a hotel for a period of 10 years and then sell it. Because ABC does not intend to repair the building, it is estimated that in 2020, the sale price of the building will be 10,000 and the plot 50,000. On 1/1/2011 ABC makes additions and improvements to the building amounting to 21,000. This amount was paid in cash. At the same time, the company decides to extend its stay in Koutsoupia by two years. The expected sale prices of the plot and the building for the year 2022 are not revised
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started