On March 1, 2016, Beldon Corporation purchased land as a factory site for $60,000. An old building on the prop- erty was demolished, and construction began on a new building that was completed on December 15, 2016. Costs incurred during this period are listed below: $ 4,000 Demolition of old building Architect's fees (for new building) Legal fees for title investigation of land Property taxes on land (for period beginning March 1, 2016) 12,000 2,000 3,000 500,000 5,000 Construction costs Interest on construction loan Salvaged materials resulting from the demolition of the old building were sold for $2,000. Required: Determine the amounts that Beldon should capitalize as the cost of the land and the new building.
On March 1, 2016, Beldon Corporation purchased land as a factory site for $60,000. An old building on the prop- erty was demolished, and construction began on a new building that was completed on December 15, 2016. Costs incurred during this period are listed below: $ 4,000 Demolition of old building Architect's fees (for new building) Legal fees for title investigation of land Property taxes on land (for period beginning March 1, 2016) 12,000 2,000 3,000 500,000 5,000 Construction costs Interest on construction loan Salvaged materials resulting from the demolition of the old building were sold for $2,000. Required: Determine the amounts that Beldon should capitalize as the cost of the land and the new building.
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 38P
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