What amount should the building be initially recorded

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Problem 1: On October 1, 2021, Jessa Corporation purchases and industrial building by an issue of 5,000,000 ordinary shares of P1 par each to the to the vendor. Jessa Corporation's shares have been actively traded on the stock exchange but its quoted price has been erratic, ranging from a low of P3.50 to a high of P13.50 for the year. On the date of purchase of the building, Jessa Corporations's shares are quoted at P8.80. The company paid P220,000 transfer and legal cost in relation to the building. At the time of acquisition the industrial building has a fair value of P35,000,000, on the existing use basis. At what amount should the building be initially recorded?

Reference no: EM132829542

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