Trading acquired a property intended for future construction of a new building. The following costs were incurred: Acquisition cost of property 10,000,000 Demolition cost of old building 250,000 Transfer of title fees, legal fees 85,000 Surveying fees 30,000 Scrap metals from demolition proceeds 15,000 Grading and leveling of land 20,000 Annual property tax for 2022 paid on Nov. 5 15,000 As of
Trading acquired a property intended for future construction of a new building. The following costs were incurred: Acquisition cost of property 10,000,000 Demolition cost of old building 250,000 Transfer of title fees, legal fees 85,000 Surveying fees 30,000 Scrap metals from demolition proceeds 15,000 Grading and leveling of land 20,000 Annual property tax for 2022 paid on Nov. 5 15,000 As of
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter17: Business Tax Credits And The Alternative Minimum Tax
Section: Chapter Questions
Problem 11P
Related questions
Question
On June 21, 2021, YY Trading acquired a property intended for future construction of a new building. The following costs were incurred: | |
Acquisition cost of property | 10,000,000 |
Demolition cost of old building | 250,000 |
Transfer of title fees, legal fees | 85,000 |
Surveying fees | 30,000 |
Scrap metals from demolition proceeds | 15,000 |
Grading and leveling of land | 20,000 |
Annual property tax for 2022 paid on Nov. 5 | 15,000 |
As of year-end, the above property was valued at P10,385,000. At what amount was the company's income overstated during the year? |
Group of answer choices
15,000
30,000
0
Cannot be determined.
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