A company purchased land for HK$80,000 cash. Real estate brokers' comr was HK$5,000 and HK$7,000was spent to demolish an old building on the before construction of a new building could start. The costrecorded for thSelect one: a. HK$92,000. b. HK$80,000. C. HK$87,000. d. HK$85,000. Next

Purchase Price80000Broker's Commission5000Cost of the land 85000Explanation:Step 1: Add the purchase…

Answered: A company purchased land for HK$80,000…

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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3
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A company purchased land for $91000 cash. Real estate brokers' commission was $6000 and $6900 was spent for demolishing an old building on the land before construction of a new building could start. Under the historical cost principle, the cost of land would be recorded at O $69000. O $103900. O $91000. O $109900.
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A company purchased land for HK$80,000 cash. Real estate brokers' comr was HK$5,000 and HK$7,000 was spent to demolish an old building on the before construction of a new building could start. The cost recorded for thSelect one: a. HK$92,000. b. HK$80,000. C. HK$87,000. d. HK$85,000. Next