Reference no: EM132568150
On December 1, 20x1, Bod Co. purchased a ?400,000 tract of land for a factory site. Bod razed an old building on the property to make way for the construction of the new factory. Bod sold the materials it salvaged from the demolition.
Bod incurred additional costs and realized salvage proceeds during December 20x1 as follows:
Demolition of old building ?50,000
Legal fees for purchase contract and recording ownership ?10,000
Title guarantee insurance ?12,000
Proceeds from sale of salvaged materials ?8,000
Question 1: In its December 31, 20x1 statement of financial position, Bod should report a balance in the land account of?
Option 1: Answer not given
Option 2: P464,000
Option 3: P442,000
Option 4: P460,000
Option 5: P422,000
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