A company purchased a three-acre tract of land for a building site for $380,000. On the land was a building with an appraised value of $122,000. The company demolished the old building at a cost of $11,400, but was able to sell scrap from the building for $1,650. The cost of title insurance was $890 and attorney fees for reviewing the contract were $500. Property taxes paid were $2,200, of which $180 covered the period subsequent to the purchase date. The capitalized cost of the land is:
A company purchased a three-acre tract of land for a building site for $380,000. On the land was a building with an appraised value of $122,000. The company demolished the old building at a cost of $11,400, but was able to sell scrap from the building for $1,650. The cost of title insurance was $890 and attorney fees for reviewing the contract were $500. Property taxes paid were $2,200, of which $180 covered the period subsequent to the purchase date. The capitalized cost of the land is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company purchased a three-acre tract of land for a building site for $380,000. On the land was a building with an appraised value of $122,000. The company demolished the old building at a cost of $11,400, but was able to sell scrap from the building for $1,650. The cost of title insurance was $890 and attorney fees for reviewing the contract were $500. Property taxes paid were $2,200, of which $180 covered the period subsequent to the purchase date. The capitalized cost of the land is:
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