Problem 26-5 (IAA)(AA) 605 oldoyNicko Company purchased a tract of land as a factory site.An old building was demolished and construction began onthe new building.Purchase price of land and an old buildingFair value of old buildingCost of demolishing old buildingTitle insurance and legal fees to purchase land4,500,000250,000300,000200,000950,0008,000,000100,000Architect feeNew building construction costSurvey before constructionBuilding permit or payment to city hall forapproval of building constructionExcavation before new constructionLiability insurance during constructionNew fence surrounding the new buildingDriveway, parking bay and safety lightingCost of trees, shrubs and other landscapingCost of lighting and signage150,000200,000100,000100,000550,000300,000100,0001. What is the cost of the land?a. 4,550,000b. 4,800,000c. 4,850,000d. 4,450,0002. What is the cost of the new building?a. 9,700,000b. 9,750,000c. 9,800,000d. 9,950,0003. What is the cost of land improvements?a. 950,000b. 650,000с. 850,000d. 400,000

Cost of Fixed Assets Fixed assets is recorded at cost of acquisition. All expenditures directly…

1. What is the cost of the land? a. 4,550,000 b. 4,800,000 c. 4,850,000 d. 4,450,000 2. What is the cost of the new building? a. 9,700,000 b. 9,750,000 c. 9,800,000 d. 9,950,000 anihd woe 3. What is the cost of land improvements a. 950,000 b. 650,000 c. 850,000

1. What is the cost of the land? a. 4,550,000 b. 4,800,000 c. 4,850,000 d. 4,450,000 2. What is the cost of the new building? a. 9,700,000 b. 9,750,000 c. 9,800,000 d. 9,950,000 anihd woe 3. What is the cost of land improvements a. 950,000 b. 650,000 c. 850,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Problem 26-5 (IAA)
(AA) 605 oldoy
Nicko Company purchased a tract of land as a factory site.
An old building was demolished and construction began on
the new building.
Purchase price of land and an old building
Fair value of old building
Cost of demolishing old building
Title insurance and legal fees to purchase land
4,500,000
250,000
300,000
200,000
950,000
8,000,000
100,000
Architect fee
New building construction cost
Survey before construction
Building permit or payment to city hall for
approval of building construction
Excavation before new construction
Liability insurance during construction
New fence surrounding the new building
Driveway, parking bay and safety lighting
Cost of trees, shrubs and other landscaping
Cost of lighting and signage
150,000
200,000
100,000
100,000
550,000
300,000
100,000
1. What is the cost of the land?
a. 4,550,000
b. 4,800,000
c. 4,850,000
d. 4,450,000
2. What is the cost of the new building?
a. 9,700,000
b. 9,750,000
c. 9,800,000
d. 9,950,000
3. What is the cost of land improvements?
a. 950,000
b. 650,000
с. 850,000
d. 400,000

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