Determine the cost of the items of investment property

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Question - Determine the cost of the following items of investment property acquired by Sebastian Corporation during 2022.

Land and building were acquired to be held for lease under operating leases. The company made a down payment of P4,000,000, issued 20,000 P200 par ordinary shares with market price of P240 per share and issued a three-year non-interest-bearing note for P6,000,000. The note is payable in equal annual installments of P2,000,000 at the end of each year from the date of purchase. Prevailing interest rate for similar notes is 10%. Thirty percent (30%) of the purchase price is allocated to the land.

Reference no: EM133184727

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