Fullerton Waste Management purchased land and a warehouse for $710,000. In addition to the purchase price, Fullerton made the following expenditures related to the acquisition: broker's commission, $41,000; insurance, $8,500; miscellaneous closing costs, $11,500. The warehouse was immediately demolished at a cost of $29,000 in anticipation of the building of a new warehouse. Determine the amounts Fullerton should capitalize as the cost of the land and the building. 3 Capitalized cost of land Capitalized cost of building

Fullerton Waste Management purchased land and a warehouse for $710,000. In addition to the purchase price, Fullerton made the following expenditures related to the acquisition: broker's commission, $41,000; insurance, $8,500; miscellaneous closing costs, $11,500. The warehouse was immediately demolished at a cost of $29,000 in anticipation of the building of a new warehouse. Determine the amounts Fullerton should capitalize as the cost of the land and the building. 3 Capitalized cost of land Capitalized cost of building

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 39P

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