How much should the Land be recorded in the books

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Question - Justin Company purchased a plant facility consisting of land and building from Joshua Company in exchange for 200,000 shares of Justin's share capital. On the acquisition date, Justin's shares had a closing market price of P65 on a stock exchange while its par value is P50. The plant facility was carried in Joshua's books at P3,000,000 for the land and P8,000,000 for the building at the exchange date. Current assessed values for the land and building, respectively are P4,500,000 and 7,000,000. How much should the Land be recorded in the books?

Reference no: EM132594573

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