etermining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $27,000 in cash and giving a short-term note for $282,000. Legal fees paid were $1,790, delinquent taxes assumed were $12,000, and fees paid to remove an old building from the land were $16,600. Materials salvaged from the demolition of the building were sold for $4,600. A contractor was paid $939,400 to construct a new warehouse. Determine the cost of the land to be reported on the balance sh
etermining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $27,000 in cash and giving a short-term note for $282,000. Legal fees paid were $1,790, delinquent taxes assumed were $12,000, and fees paid to remove an old building from the land were $16,600. Materials salvaged from the demolition of the building were sold for $4,600. A contractor was paid $939,400 to construct a new warehouse. Determine the cost of the land to be reported on the balance sh
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 38P
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Determining Cost of Land
On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $27,000 in cash and giving a short-term note for $282,000. Legal fees paid were $1,790, delinquent taxes assumed were $12,000, and fees paid to remove an old building from the land were $16,600. Materials salvaged from the demolition of the building were sold for $4,600. A contractor was paid $939,400 to construct a new warehouse.
Determine the cost of the land to be reported on the balance sheet.
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