2. Erica Company had the following property acquisitions during the current year: 1. Acquired a tract of land in exchang

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2 Erica Company Had The Following Property Acquisitions During The Current Year 1 Acquired A Tract Of Land In Exchang 1 (93.8 KiB) Viewed 20 times

2. Erica Company had the following property acquisitions during the current year: 1. Acquired a tract of land in exchange for 50,000 ordinary shares with P100 par value and market price of P120 per share on the date of acquisition. The last property tax bill indicated assessed value of P4,500,000 for the land. 2. Received land from a major shareholder as an inducement to locate a plant in the city. No payment was required but the entity paid P50,000 for legal expenses for land transfer. The land is fairly valued at P1,000,000. 3. Purchased for P5,500,000, including appraiser fee of P100,000 a warehouse building and the land on which it is located. The land had an appraised value of P2,000,0000 and original cost of P1,400,000. The building had an appraised value of P3,000,000 and original cost of P2,500,000. 4. Purchased an office building and the land on which it is located for P7,500,000 cash and assumed an existing P2,500,000 mortgage. For realty tax purposes, the property is assessed at P9,600,000, 60% of which is allocated to building. Required: Prepare journal entries to record the transactions for the current year.