The Blowing Rock Partnership purchased land for $1,200,000 with plans to build a spa on the site. The partnership tore down severalbuildings on the property for $20,000. Salvaged materials with a cost of $6,000 will be repurposed in the spa. Trees were removed for$5,000 and drainage was added for $30,000. The area was fenced for $41,000. A preliminary consultation with an architect cost$2,500 and legal fees of $3,200 were paid in connection with changing the zoning of the property. What accounts will be debited forthese costs?O Land, $1,249,000; Land Improvements, $41,000; Building, $5,700O Land, $1,235,000; Land Improvements, $55,000; Architect Expense, $2,500,000; Legal Expense, $3,200Land, $1,255,000; Land Improvements, $41,000; Building, $11,700O Land, $1,249,000; Land Improvements, $41,000; Building, $2,500; Legal Expense, $3,200

A. Land, $1,249,000; Land Improvements, $41,000; Building, $5,700This option correctly debits Land…

Answered: The Blowing Rock Partnership purchased…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 7PB: Tree Lovers Inc. purchased 2,500 acres of woodland in which it intends to harvest the complete...

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