An entity 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 - 4,500,000 Fair value of old building- 250,000 Cost of demolishing old building - 300,000 Title insurance and legal fees to purchase land - 200,000 Architect fee - 950,000 New building construction cost - 8,000,000 Survey before construction - 100,000 Building permit or payment to city hall for approval of building construction - 150,000 Excavation before new construction - 200,000 Liability insurance during construction - 100,000 New fence surrounding the new building - 100,000 Driveway, parking bay and safety lighting - 550,000 Cost 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?
An entity 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 - 4,500,000
Fair value of old building- 250,000
Cost of demolishing old building - 300,000
Title insurance and legal fees to purchase land - 200,000
Architect fee - 950,000
New building construction cost - 8,000,000
Survey before construction - 100,000
Building permit or payment to city hall for approval of
building construction - 150,000
Excavation before new construction - 200,000
Liability insurance during construction - 100,000
New fence surrounding the new building - 100,000
Driveway, parking bay and safety lighting - 550,000
Cost 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?
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