nd and puilding. the land had to be cleared of trees and brush. Construction costs incurred during the first year are listed -1B The Italian Pizza Company purchased land as a factory site for $90,000. Prior to construction of the new Ihelow: Land clearing costs $ 5,000 Sale of firewood to a worker (400) Architect fees (for new building) 30,000 Title investigation of land 3,500 Property taxes on land (for the first year) 3,000 Building construction costs 400,000 1. Calculate amount capitalized to land and record the journal entry.
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- The Italian Pizza Company purchased land as a factory site for $90,000. Prior to construction of the new building, the land had to be cleared of trees and brush. Construction costs incurred during the first year are listed below:Land clearing costs $ 5,000 Sale of firewood to a worker (400) Architect fees (for new building) 30,000 Title investigation of land 3,500 Property taxes on land (for the first year) 3,000 Building construction costs 400,000Required: Determine the amounts that the company should record in the Land and the New Building accounts.The Madison Sign Company purchased land as a factory site for $72,000. Prior to construction of the new building, the land had to be cleared of trees and brush. Construction costs incurred during the first year are listed below: Land clearing costs $3,200 Sale of firewood to a worker (580) Architect fees (for new building) 12,000 Title investigation of land 1,700 Property taxes on land (for the first year) 1,200 220,000 Building construction costs Required: Determine the amounts that the company should record in the Land and the Building accounts. (Amounts to be deducted should be indicated by a minus sign.) Totals $ Land BuildingDuring the year ended 31 December 20X1, Bougs Co built an extension to its head office. Associated costs are as follows: Land acquisition Fees for environmental certifications and building permits Sm 20 X3 X4 Architect and engineer fees Construction material and labour costs X5 At 30 September 20X1, this head office extension became available for use. At that date, the total borrowing costs incurred on a loan which was used specifically to finance this head office extension amounted to $1.6 million. Since construction costs are gradually eliminated according to the construction progress, there is a temporary income from the above loan of $0.3 million during the construction period.
- On March 1, K Company purchased for 4,500,000 a tract of land as factory site. An existing building on the property was razed and construction was begun on a new factory building in April. Additional data are available as follows: Cost of razing old building 300,000 Title insurance and legal fees to purchase land 200,000 Architect fee 950,000 New building construction cost 8,000,000 What is the cost of factory building?On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for $845,000. An existing building on the site was demolished and the new factory was completed on October 11, Year 1. Additional cost data are shown below: Construction cost of new building $ 1,032,000 Real estate and attorney fees Architect fees Cost to demolish old building Salvage recovery from old building What is the capitalized cost of the new building? O $1,205,900 O $1,120,000 O $1,105,000 O $1,184,900 21,000 88,000 79,900 (15,000)Reverend Company acquired a new processing machine at the beginning of the current year: Invoice cost – terms 5/10, n/30 1,600,000 Cost of transportation to the entity’s factory 50,000 Cost of installation (labor and materials) 50,000 Payment for strengthening the floor to support the weight of the new machine 150,000 The chief engineer spent two-thirds of his time during a trial run of the new machine. The monthly salary is P60,000. During the year, the entity was granted a cash allowance of P100,000 by the supplier because the machine proved to be of less than standard performance capability. The operator of the old machine who was laid off due to the acquisition of the new machine was paid a gratuity of P30,000. What amount should be capitalized cost of the new machine?
- On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for $825,000. An existing building on the site was demolished and the new factory was completed on October 11, Year 1. Additional cost data are shown below: Construction cost of new building $ 1,000,000 Real estate and attorney fees 18,200 Architect fees 84,000 Cost to demolish old building 77,100 Salvage recovery from old building (13,000 ) Which of the following are the capitalized costs of the land and the new building, respectively? Multiple Choice A $843,200 and $1,148,100 B $920,300 and $1,071,000 C $825,000 and $1,166,300 D $907,300 and $1,084,000The Italian Bread Company purchased land as a factory site for $70,000. An old building on the property was demolished, and construction began on a new building. Costs incurred during the first year are listed as follows:Demolition of old building $ 9,000Sale of salvaged materials (1,100)Architect fees (for new building) 20,000Legal fees (for title investigation of land) 3,000Property taxes on the land (for the first year) 4,000Building construction costs 600,000Interest costs related to the construction 23,000Required:Determine the amounts that the company should record in the Land and the Building accounts.China Express purchased land for $140,000. Prior to construction on the new building, the land had to be cleared of trees and brush. Construction costs incurred during the first year are listed below: Land clearing costs $ 5,000 Architect fees (for new building) 30,000 Legal fees for title investigation of land 1,000 Property taxes on land (for the first year) 2,500 Building construction costs 440,000 Required:Determine the amounts that should be recorded in the land and the new building accounts.
- During the current year, Bear Company had the following transactions pertaining to a new office building:Purchase price of land- 600,000Legal fees for contract to purchase land- 20,000Architect fee -80,000Demolition of old building on site to make roomfor construction of new building -50,000Sale of scrap from old building -30,000Construction cost of new building fully completed -3,500,0001. What amount should be reported as cost of land?2. What amount should be reported as cost of building?The Italian Bread Company purchased land as a factory site for $63,000. An old building on the property was demolished, and construction began on a new building. Costs incurred during the first year are listed as follows: Demolition of old building $ 8,300 Sale of salvaged materials (1,000 ) Architect fees (for new building) 16,500 Legal fees (for title investigation of land) 2,300 Property taxes on the land (for the first year) 3,300 Building construction costs 530,000 Interest costs related to the construction 19,500 Required: Determine the amounts that the company should record in the Land and the Building accounts. (Amounts to be deducted should be indicated by a minus sign.)Martini Company incurred the following costs in purchasing a land as a factory site:Purchase price 2,400,000Cost of tearing down old building 240,000Legal fee for title investigation 15,000Title insurance 10,000 Architect fee 125,000Liability insurance during construction 25,000Excavation cost 40,000Payment to building contractor 8,800,000Special assessment by city for public improvement 30,000Interest cost during construction 300,000 What is the cost of the building?