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Auto purchased a $500,000 tract of land that is intended to be the site of a new office complex. The company incurred additional costs and realized salvage proceeds as follows: Demolilitipn of existing building on site: $75,000 Legal and other fees to close escrow: $15,000 Proceeds from sale of demolition scrap: $10,000 What would be the cost of land? A. $500,000 B. $575,000 C. $580,000 D. $590,000

Cost of a Fixed Asset Borges Inc. recently purchased land to use for the construction of its new manufacturing facility and incurred the following costs: purchase price, $83,000; interest charges, $500; real estate commissions, $4,800; delinquent property taxes, $1,500; closing costs, $3,300; and clearing and grading of the land, $8,100. Required: Determine the cost of the land. X Feedback Check My Work The cost of a fixed asset is any expenditure necessary to acquire the asset and to prepare the asset for use. These expenditures are said to be capitalized. screen rec

A company purchased property for a building site. The costs associated with the property were: Purchase price $175,000 Real estate commissions 15,000 Legal fees. Expenses of clearing the land Expenses to remove old building 800 2,000 1,000 What portion of these costs should be allocated to the cost of the land and what portion should be alloca the cost of the new building? $175,800 to Land; $18,800 to Building O $190,000 to Land; $3,800 to Building $190,800 to Land; $1,000 to Building O $192,800 to Land; $0 to Building O $193,800 to Land; $0 to Building

a. The Hope Company purchased a building for $500,000. In addition, the following costs were incurred: at the purchase Broker commission $25,000 Transfer taxes 000'01 Closing costs Legal fees Past real estates owed by seller 000'0r 000'9 Before the building was open, another $100,000 of renovation costs were incurred to get the building ready for the company's use. After the building was open the following costs were incurred: Current real estate taxes Minor repairs 000 Instructions; Calculate the amount that should be debited to the building account at acquisition. b. 1. On January 1, year 1, the Acme Company purchased a machine for $85,000. The useful life was 5 years or 320,000 units and the salvage value was $5,000. The expected unit output per year is as follows: 1. 60,000 2. 100,000 3. 40,000 4. 90,000 5. 30,000 Instructions; On the worksheet provided, compute the depreciation expense per year under straight-line, double declining balance and unit of activity methods 2. Based on…

Merchant Company purchased property for a building site. The costs associated with the property were:   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?

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?

XYZ Company had the following transactions pertaining to its new office building: Purchase price of land -P1,200.000; Legal fees for contracts to purchase land -P130,000; Architect's fee - P255,000: Demolition of old building on site -P310.000; Sale of scrap from old building -P71,000; Construction cost of new building (fully completed) -P2.450,000: Fire insurance policy on the newly constructed building for the whole year starting on the day it was completed -P250.000. At what amount should the building be shown in XYZ statement of financial position of?

Kofkans company limited purchased land as a factory site and contracted with Maxtor Construction to construct a factory. Kofkans made the following expenditures related to the acquisition of the land, building, and equipment for the factory.                                                                                                    GHCPurchase price of land                                                           1,200,000Demolition and removal of old building                                80,000Clearing and grading the land before construction              150,000Various closing costs in connection with acquiring land      42,000Architect’s fee for the plans for the new building                50,000Payments to Maxtor for building construction                   3,250,000Equipment purchased                                                         860,000Freight charges on equipment                                                             32,000Trees, plants and other…

During the current year, Alanna Co. had the following transactions pertaining to its new office building. Purchase price of land $120,000 Legal fees for contracts to purchase land 5,000 Architech fees 15,000 Demolition of the old building on site 12,000 Sale of scrap from old building 7,000 Construction cost of new building 680,000 A. What should Alanna Co. record on its books for the land? K) 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. $1 B. What should Alanna Co. record on its books for the building?

Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct afactory. Teradene made the following expenditures related to the acquisition of the land, building, and equipmentfor the factory:Purchase price of the land $1,200,000Demolition and removal of old building 80,000Clearing and grading the land before construction 150,000Various closing costs in connection with acquiring the land 42,000Architect’s fee for the plans for the new building 50,000Payments to Maxtor for building construction 3,250,000Equipment purchased 860,000Freight charges on equipment 32,000Trees, plants, and other landscaping 45,000Installation of a sprinkler system for the landscaping 5,000Cost to build special platforms and install wiring for the equipment 12,000Cost of trial runs to ensure proper installation of the equipment 7,000Fire and theft insurance on the factory for the first year of use 24,000In addition to the above expenditures, Teradene purchased four…

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19 MAGANDANGEHEMPLO, Inc. obtained a land with an old building, that will be accounted for under property, plant and equipment. The Company intends to demolish the old building, to build a new building and will not use the old building prior to its demolition. The following information relates to the land and building:   Purchase price of the land and building                                P3,500,000 Fair value:             Land                                                                                3,000,000             Old building                                                                    2,000,000 Historical cost             Land                                                                                2,000,000             Old building                                                                   6,000,000 Demolition costs                                                                           700,000 Construction cost of the new building…

1. Cala Manufacturing purchases a large lot onwhich an old building is located as part of its plans to build a new plant.The negotiated purchase price is $269,000 for the lot plus $164,000 for theold building. The company pays $26,200 to tear down the old building and$38,730 to fill and level the lot. It also pays a total of $1,545,568 inconstruction costs—this amount consists of $1,453,800 for the new buildingand $91,768 for lighting and paving a parking area next to the building. Prepare a single journal entry to recordthese costs incurred by Cala, all of which are paid in cash. Liltua Company pays$385,000 for real estate plus $20,405 in closing costs. The real estateconsists of land appraised at $214,200; land improvements appraised at$102,000; and a building appraised at $193,800. 2.Allocate the totalcost among the three purchased assets.(Round your “Apportioned Cost” answers to 2decimal places.) rev:11_26_2013_QC_41255 3.Prepare the journal entry to record the purchase.(Round…

On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for $845,000. 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 $ 1,032,000 Real estate and attorney fees Architect fees Cost to demolish old building Salvage recovery from old building What is the capitalized cost of the new building? O $1,205,900 O $1,120,000 O $1,105,000 O $1,184,900 21,000 88,000 79,900 (15,000)

An entity purchased a tract of land as a factory site. An old building was demolished and construction beganon the new building. Purchase price of land and an old building - 4,500,000Fair value of old building- 250,000Cost of demolishing old building - 300,000Title insurance and legal fees to purchase land - 200,000Architect fee - 950,000New building construction cost - 8,000,000Survey before construction - 100,000Building permit or payment to city hall for approval ofbuilding construction - 150,000Excavation before new construction - 200,000Liability insurance during construction - 100,000New fence surrounding the new building - 100,000Driveway, parking bay and safety lighting - 550,000Cost of trees, shrubs and other landscaping - 300,000 Required:1. What is the cost of the land?2. What is the cost of the new building?3. What is the cost of land improvements?

What is the proper capitalized cost of the printing press?

From page 7-2 of the VLN, intangible assets are long term assets and would NOT include: Group of answer choices A. Goodwill B. Natural gas C. Patents D. Copyrights