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On 1 January 2021 an entity acquired a building for P95,000, including P5,000 non-refundable purchase taxes. The purchase agreement provided for payment (including payment of
On 1 January 2021 an entity acquired a building for P95,000, including P5,000 non-refundable purchase taxes. The purchase agreement provided for payment (including payment of the purchase taxes) to be made in full on 31 December 2021. Legal fees of P2,000 were incurred in acquiring the building and paid on 1 January 2021. The building is occupied by the entitys administrative staff. An appropriate discount rate is 10 per cent per year. The entity should measure the initial cost of the building at: a. P102,000 b. P97,000 c. P88,364 d. P107,000
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