A company purchased land for HK$80,000 cash. Real estate brokers' comr was HK$5,000 and HK$7,000 was spent to demolish an old building on the before construction of a new building could start. The cost recorded for thSelect one: a. HK$92,000. b. HK$80,000. C. HK$87,000. d. HK$85,000. Next
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- A company purchased property for a building site. The costs associated with the property were: Purchase price $175,000 Real estate commissions 15,000 Legal fees. Expenses of clearing the land Expenses to remove old building 800 2,000 1,000 What portion of these costs should be allocated to the cost of the land and what portion should be alloca the cost of the new building? $175,800 to Land; $18,800 to Building O $190,000 to Land; $3,800 to Building $190,800 to Land; $1,000 to Building O $192,800 to Land; $0 to Building O $193,800 to Land; $0 to Building$1,300 sq.f.t building costs $110 per sq.ft to build new. Depreciation is estimated to be 10%. The land is estimated at $40,000. What is the value estimated by the cost approach? a. $190,114 b. 211,326 c. 138,358 d. 109,119 e. 168,700A cormpany purchased land for $80,000 cash. Real estate brokers' comnmission was $5,000 and $10,000 was spent for demolishing an old building on the land before construction of a new building could start. Under the cost concept, the cost of land would be recorded at O $90,000 O $80,000 O $95,000 $85,000 DELL TEBCO
- for erecting tall buildings. It was at P250,000.00 Brokerage, bank, arrester fees, custom duties, permits, etc. total P120,000.00. At the end of 10 years, he expects to sell it for P50, 000. Prepare a depreciation schedule A mechanical engineer bought a gantry crane insurance, invoiced from JAPAN CIF (cost, and freight) Manila for each of the following methods : 1. Straight Line Method. 2. Sinking Fund Method at 124 3. Declining Balance Method. 4. Double Declining Balance Method. 5. SYD Method.10. Theresa Company purchased for P4,500,000 a tract of land as a factory site. An old building was demolished and construction began on the new building. Cost of demolishing old building Title insurance and legal fees to purchase land 300,000 200,000 Architect fee 950,000 New building construction cost Survey before construction Building permit or payment to city hall for approval of building construction Excavation before new construction 8,000,000 50,000 150,000 200,000 ort 1 100,000 Liability insurance during construction New fence surrounding the factory Driveways, parking bays and safety lighting Cost of trees, shrubs and other landscaping What is the cost of the new building? A. 9,700,000 100,000 550,000 250,000 B. 9,750,000 C. 9,800,000 D. 9,750,000Purchased land costs 2,500,000 and a Bank transfer is made. The cost of excavation of the old building and the base of the new building is 300,000 + %10VAT, the Property tax paid is 60,000 and Estate company invoice is 30,000+%10VAT is on the account. Please do necessary accounting enteries.
- A company purchased land for $350000 cash. The real estate brokers' commission was $15000 and $61000 was spent for demolishing an old building on the land before construction of a new building could start. Under the historical cost principle, the cost of land is $350000. $365000. $426000. $411000.Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price $ 187,000 Real estate commissions 16,200 Legal fees 2,000 Expenses of clearing the land 3,200 Expenses to remove old building 2,200 What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?During the current year, Alanna Co. had the following transactions pertaining to its new office building. Purchase price of land $120,000 Legal fees for contracts to purchase land 5,000 Architech fees 15,000 Demolition of the old building on site 12,000 Sale of scrap from old building 7,000 Construction cost of new building 680,000 A. What should Alanna Co. record on its books for the land? K) The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. $1 B. What should Alanna Co. record on its books for the building?
- Determine the Cost of Land Village Delivery Company purchased a lot to construct a new warehouse for $243,000, paying $28,000 in cash and giving a short-term note for the remainder. Legal fees paid in connection with the purchase were $2,075, delinquent taxes assumed were $12,300, and fees paid to remove an old building from the land were $17,400. Materials salvaged from the demolition of the building were sold for $4,100. A contractor was paid $823,800 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet. XA company purchased new equipment for $65,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,250; sales tax paid $4,000; and installation cost, $3,000. The cost recorded for the equipment was: Multiple Choice $65,000. $70,250. $73.250The Open Grill incurred the following costs in acquiring a new piece of land: Purchase price $80,000 Commissions 4,800 Liability insurance for the first year 1,200 20,000 Cost of removing existing building Sale of salvaged materials (4,000) Total costs $102,000 What is the total capitalized cost of the land? Multiple Choice O O $102,000. $80,000. $100,800. $106,000.