t K Randall, Inc. purchased land to build an office. In the first quarter, the following amounts were incurred: Acquisition of land Architectural Fee Lawn sprinkler system Building permits Surveys and legal fees Land clearing Contractor charges for building Fencing Material and labor cost for building $140,000 15,900 12,300 3,400 2,300 OA. $734,300 B. $617,500 OC. $730,900 D. $750,400 11,600 155,000 8,100 560,000 Install lighting and signage 1,700 Parking lot 2,200 What amount should be recorded as the cost of the building in the corporation's books?

t K Randall, Inc. purchased land to build an office. In the first quarter, the following amounts were incurred: Acquisition of land Architectural Fee Lawn sprinkler system Building permits Surveys and legal fees Land clearing Contractor charges for building Fencing Material and labor cost for building $140,000 15,900 12,300 3,400 2,300 OA. $734,300 B. $617,500 OC. $730,900 D. $750,400 11,600 155,000 8,100 560,000 Install lighting and signage 1,700 Parking lot 2,200 What amount should be recorded as the cost of the building in the corporation's books?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 3PB: During the current year, Alanna Co. had the following transactions pertaining to its new office...

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During the current year, Alanna Co. had the following transactions pertaining to its new office building. A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. B. What should Alanna Co. record on its books for the building?
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