[Anonymous]

On May 3, 2017, LABAN exchanged 50,000 treasury shares (₱50 par value ordinary share) for a parcel of land to
be used as aa site for a new factory. The treasury share had a cost of ₱70 per share when it was acquired and on
May 3, 2017, it had a fair market value of ₱80 per share. LABAN received ₱200,000 when an existing building on
the land was sold for scrap. You found the related journal entries in the books as follows;

Land (debit) ₱4,000,000
Treasury shares (credit)₱3,500,000
Gain on sale of treasury share (credit) 500,000

Cash (debit) 200,000
Scrap income (credit) 200,000

Question:
What is the carrying value of the company’s land as of December 31, 2017?

[Lara]

This forum is US CPA review study forum not Filipino homework hotline. There are several differences with IFRS and US GAAP application.

[Author]

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