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Posted: August 22nd, 2020
Required Discuss the issues associated with measuring the fair value of a site currently used for production, but which could be redeveloped for retail purposes.
Question 2: (Approximately 300 words in total)
Part A (150 words) Flyrock Ltd purchased land for use as its corporate headquarters. A small factory that was on the land when it was purchased was torn down before construction of the office building began. Furthermore, a substantial amount of rock blasting and removal of soil had to be done to the site before construction of the foundations of the building began. Because the office building was set back from the public road, Flyrock Ltd had the construction company build a paved road that led from the public highway to the entrance to the office building.
Required Write a report to the group accountant of Flyrock Ltd detailing which of the above expenditures should be capitalized. Accounting homework help
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