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There certainly many problems in applying this principle to specific situations

Forums › Other Accountancy Qualifications Forums › There certainly many problems in applying this principle to specific situations

  • This topic has 0 replies, 1 voice, and was last updated 10 years ago by lim.
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  • February 21, 2015 at 3:21 pm #229513
    lim
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    Assume that the AtapBerhad bought a large piece of land, including the building thereon, with the intent of razing the buildings and constructing a combined hotel and office building in their place. The existing buildings consisted of a theatre and several stores and small apartment buildings, all in active use at the time of the purchase.

    What accounting treatment should be accorded that portion of the purchase price considered to be amount paid for the buildings that are subsequently razed?

    *Someone can guide me with your information??
    thanks you very much

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