H3. 3Entity B purchased land to build a new plant. It incurred the following costs:Purchase price of landTear down existing building on landSale of salvage from tear downClear and fill the landConstruction costs for new buildingLighting and paving a parking area$390,000$47,000$12,000$23,000$2,038,000$1,948,000$448,000$1,500,000$90,000What is the amount that should be debited to the Land account?O $460,000

Land is considered to have indefinite life so its not depreciated it is a fixed assets and wile…

Entity B purchased land to build a new plant. It incurred the following Purchase price of land Tear down existing building on land Sale of salvage from tear down Clear and fill the land $390,000 $47,000 $12,000 $23,000 $1,500,000 $90,000 Construction costs for new building Lighting and paving a parking area What is the amount that should be debited to the Land account?

Entity B purchased land to build a new plant. It incurred the following Purchase price of land Tear down existing building on land Sale of salvage from tear down Clear and fill the land $390,000 $47,000 $12,000 $23,000 $1,500,000 $90,000 Construction costs for new building Lighting and paving a parking area What is the amount that should be debited to the Land account?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 44E: Cost of a Fixed Asset Colson Photography Service purchased a new digital imaging machine on April 15...

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