Ivanhoe Co. purchased land as a factory site for $520,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $54,600 to raze the old buildings and sold salvaged lumber and brick for $8,190. Legal fees of $2.405 were paid for title investigation and drawing the purchase contract. Ivanhoe paid $2,860 to an engineering firm for a land survey, and $88,400 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $1,950, and a liability insurance premium paid during construction was $1,170. The contractor's charge for construction was $3,562,000. The company paid the contractor in two installments: $1,560,000 at the end of 3 months and $2,002,000 upon completion. Interest costs of $221,000 were incurred to finance the construction. Determine the cost of the land and the cost of the building as they should be recorded on the books of Ivanhoe Co. Assume that the land survey was for the building. Cost of the Land $4 Cost of the Building $4

Jacobson Company purchased a parcel of land for a new office building. The cost of the land was $310,000. An old building on the property wad demolished and construction began on the new building. All of this activity occurred within the same year. Costs included demolition ($37,000), architect fees on the new building design ($64,000), legal fees for land title investigation ($3,100), and construction ($768,000). At what amount should Jacobson Company record the cost the cost of the building? A B C D $768,000 $832,000 $869,000 $1,078,000

Apple Co. purchased land as a factory site for $1,350,000. Apple paid $120,000 to tear down two buildings on the land. Salvage was sold for $8,100. Legal fees of $5,220 were paid for title investigation and making the purchase. Architect's fees were $46,800. Title insurance cost $3,600, and liability insurance during construction cost $3,900. Excavation cost $15,660. The contractor was paid $4,200,000. An assessment made by the city for pavement was $11,600. Interest costs during construction were $255,000. The cost of the land that should be recorded by Apple Co. is

Texas Co. purchased land as a factory site for $1,500,000. Texas paid $200,000 to tear down two buildings on the land. Legal fees of $10,000 were paid for title investigation and making the purchase. Architect's fees were $40,000. Title insurance cost $5,000, and liability insurance during construction cost $4,000. Excavation cost $20,000. The contractor was paid $4,000,000. An assessment made by the city for pavement was $20,000. Interest costs during construction were $200,000. The cost of the land that should be recorded by Texas Co. is?

On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for $825,000. An existing building on the site was demolished and the new factory was completed on October 11, Year 1. Additional cost data are shown below: Construction cost of new building $ 1,000,000 Real estate and attorney fees 18,200 Architect fees 84,000 Cost to demolish old building 77,100 Salvage recovery from old building (13,000 ) Which of the following are the capitalized costs of the land and the new building, respectively? Multiple Choice A $843,200 and $1,148,100 B $920,300 and $1,071,000 C $825,000 and $1,166,300 D $907,300 and $1,084,000

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The Madison Sign Company purchased land as a factory site for $75,000. Prior to construction of the new building, the land had to be cleared of trees and brushConstruction costs incurred during the first year are listed below

Widget Industries erected a facility costing $1.56 million on land bought for $1 million. The firm used straight-line depreciation over a 39-year period; it installed $2.5 million worth of plant and office equipment (all classified as MACRS 7-year property). Gross income from the first year of operations (excluding capital expenditures) was $8.2 million, and $5.8 million was spent on labor and materials. How much did Widget pay in federal income taxes for the first year of operation?                                                                                       (a) $680,935 (b) $1,002,750 (c) $1,321,815 (d) $2,788,000

Cala Manufacturing purchases land for $459,000 as part of its plans to build a new plant. The company pays $39,800 to tear down an old building on the lot and $58,835 to fill and level the lot. It also pays construction costs of $1,498,000 for the new building and $94,558 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash. View transaction list Journal entry worksheet A Record the total costs of the plant assets. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View genera

Murphy Self Storage purchased land, paying $160,000 cash as a down payment and signing a $185,000 note payable for the balance. Murphy also had to pay delinquent property tax of $2,000, title insurance costing $6,000, and $11,000 to level the land and remove an unwanted building. The company paid $58,000 to add soil for the foundation and then constructed an office building at a cost of $700,000. It also paid $52,000 for a fence around the property, $11,000 for the company sign near the property entrance, and $3,000 for lighting of the grounds. Read the requirement. The cost of the land is The cost of the land improvements is The cost of the building is Requirement 1. What is the capitalized cost of each of Murphy's land, land improvements, and building? Print Done - X