The following costs were incurred by Imports Auto Parts in connection with the construction of a retail store building: Cost of land, including $18,200 of legal costs Cost to demolish old building Costs of grading land for building site Costs related to building construction Legal costs relating to building permits Costs of paving parking lot $320,000 18,350 10,400 870,000 16,775 92,000 Required: 1 & 2. What are the capitalized costs of the land and the new building? S Purchase price of land Demolition cost of old building Cost to level building site Cost to construct building Legal costs related to building Costs of paving parking lot Total capitalized cost Land Retail Building

The following costs were incurred by Imports Auto Parts in connection with the construction of a retail store building: Cost of land, including $18,200 of legal costs Cost to demolish old building Costs of grading land for building site Costs related to building construction Legal costs relating to building permits Costs of paving parking lot $320,000 18,350 10,400 870,000 16,775 92,000 Required: 1 & 2. What are the capitalized costs of the land and the new building? S Purchase price of land Demolition cost of old building Cost to level building site Cost to construct building Legal costs related to building Costs of paving parking lot Total capitalized cost Land Retail Building

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

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

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Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price $ 191,000 Real estate commissions 16,600 Legal fees 2,400 Expenses of clearing the land Expenses to remove old building 3,600 2,600 What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?
What is the cost of the land, based upon the following data? Land purchase price $184,675 Broker's commission 18,496 Payment for the demolition and removal of existing building 4,906 Cash received from the sale of materials salvaged from the demolished building 2,414 $
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The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search $3,200 b. Cost of real estate acquired as a plant site: Land 340,700 Building (to be demolished) 32,400 c. Delinquent real estate taxes on property, assumed by purchaser 19,200 d. Cost of tearing down and removing building acquired in (b) 5,400 e. Proceeds from sale of salvage materials from old building 3,200* f. Special assessment paid to city for extension of water main to the property 12,800 g. Architect’s and engineer’s fees for plans and supervision 46,800 h. Premium on one-year insurance policy during construction 4,500 i. Cost of filling and grading land 18,700 j. Money borrowed to pay building contractor 798,900* k. Cost of repairing windstorm damage during…
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What is the cost of the land, based upon the following data? Land purchase price $184,449 Broker's commission 18,832 Payment for the demolition and removal of existing building 5,505 Cash received from the sale of materials salvaged from the demolished building 1,490 $fill in the blank 1
Current Attempt in Progress Indicate whether each of the following expenditures should be classified as land, land improvements, buildings, equipment, or none of these. 1. Computer installation cost 2. 3. 4. 5. 6. 7. 8. 9. 10. Driveway cost Architect's fee Surveying costs Grading costs Cost of lighting for the parking lot Insurance while in transit and freight on a computer purchased Material and labor costs incurred to construct a factory Cost of tearing down a warehouse on land just purchased Utility cost during the first year 4
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