The General Service Contractor Company paid$400,000 for a house and lot. The value of the landwas appraised at $155,000 and the value of the houseat $245,000. The house was then torn down at anadditional cost of $15,000 so that a warehouse couldbe built on the combined lots at a cost of $1,250,000.What is the value of the property with the warehouse?For depreciation purposes, what is the cost basis forthe warehouse?
The General Service Contractor Company paid$400,000 for a house and lot. The value of the landwas appraised at $155,000 and the value of the houseat $245,000. The house was then torn down at anadditional cost of $15,000 so that a warehouse couldbe built on the combined lots at a cost of $1,250,000.What is the value of the property with the warehouse?For depreciation purposes, what is the cost basis forthe warehouse?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...
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The General Service Contractor Company paid
$400,000 for a house and lot. The value of the land
was appraised at $155,000 and the value of the house
at $245,000. The house was then torn down at an
additional cost of $15,000 so that a warehouse could
be built on the combined lots at a cost of $1,250,000.
What is the value of the property with the warehouse?
For
the warehouse?
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