4A company purchased a 3-acre tract of land for a building site for $480,000. The company demolished the old building at a cost of $25,000, but was able to sell scrap from the building for $2,800. The cost of titletransfer was $1,550 and attorney fees for reviewing the contract was $760. Property taxes paid were $9,500, of which $900 covered the period after the purchase date. The capitalized cost of the land is:Multiple ChoiceO$513,110.$514,610.$514,860.$379,610.

Land is considered to be long term asset as we do not expect it to sell off within a year. Also no…

A company purchased a 3-acre tract of land for a building site for $480,000. The company demolished the old building at a cost of $25,000, but was able to sell scrap from the building for $2,800. The cos transfer was $1,550 and attorney fees for reviewing the contract was $760. Property taxes paid were $9,500, of which $900 covered the period after the purchase date. The capitalized cost of the land is: Multiple Choice O O O O $513,110. $514,610. $514,860. $379,610.

A company purchased a 3-acre tract of land for a building site for $480,000. The company demolished the old building at a cost of $25,000, but was able to sell scrap from the building for $2,800. The cos transfer was $1,550 and attorney fees for reviewing the contract was $760. Property taxes paid were $9,500, of which $900 covered the period after the purchase date. The capitalized cost of the land is: Multiple Choice O O O O $513,110. $514,610. $514,860. $379,610.

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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