Case A Robert Sporting Goods Company has been experiencing growth in the demand for its products, post COVID- 19. To be able to meet quantity commitments, the company has to obtain additional manufacturing capacity. It purchased land for a new factory site for S600 000 on January 1, 2021 and paid $60 000 to tear down two buildings that were on the land. Salvage from the demolition was sold for $5 400. Legal fees of $3 480 were paid for title investigation and making the purchase along with the Architect's fees of S31 200. Title insurance cost of $2 400, and liability insurance during construction cost of $2 600 were incurred. Excavation works amounted $10,440. The contractor, BDO Construction Ltd was paid $2 200 000. An assessment made by the Government Housing and Infrastructure Authorities (GHIA) for pavements was valued at $6 400. Interest costs incurred during construction amounted to $170 000. Required: What is the cost of the land that should be capitalized on the books by Robert Sporting Goods Company? Complete the schedule below. If a line item does not apply place zero in the field in the number column. Dc not leave any number fields blank.
Case A Robert Sporting Goods Company has been experiencing growth in the demand for its products, post COVID- 19. To be able to meet quantity commitments, the company has to obtain additional manufacturing capacity. It purchased land for a new factory site for S600 000 on January 1, 2021 and paid $60 000 to tear down two buildings that were on the land. Salvage from the demolition was sold for $5 400. Legal fees of $3 480 were paid for title investigation and making the purchase along with the Architect's fees of S31 200. Title insurance cost of $2 400, and liability insurance during construction cost of $2 600 were incurred. Excavation works amounted $10,440. The contractor, BDO Construction Ltd was paid $2 200 000. An assessment made by the Government Housing and Infrastructure Authorities (GHIA) for pavements was valued at $6 400. Interest costs incurred during construction amounted to $170 000. Required: What is the cost of the land that should be capitalized on the books by Robert Sporting Goods Company? Complete the schedule below. If a line item does not apply place zero in the field in the number column. Dc not leave any number fields blank.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Case A
Robert Sporting Goods Company has been experiencing growth in the demand for its products, past COVID-
19. To be able to meet quantity commitments, the company has to obtain additional manufacturing capacity.
It purchased land for a new factory síte for $600 000 on January 1, 2021 and paid $60 000 to tear down two
buildings that were on the land. Salvage from the demolition was sold for $5 400.
Legal fees of $3 480 were paid for title investigation and making the purchase along with the Architect's fees of
$31 200. Title insurance cost of $2 400, and liability insurance during construction cost of $2 600 were incurred.
Excavation works amounted $10,440. The contractor, BDO Construction Ltd was paid
$2 200 000. An assessment made by the Government Housing and Infrastructure Authorities (GHIA) for
pavements was valued at $6 400.
Interest costs incurred during construction amounted to $170 000.
Required:
What is the cost of the land that should be capitalized on the books by Robert Sporting Goods Company?
Complete the schedule below. If a line item does not apply place zero in the field in the number column. Do
not leave any number fields blank.
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