Apple Co. purchased land as a factory site for $1,350,000. Apple paid $120,000 to tear down two buildings on the land. Salvage was sold for $8,100. Legal fees of $5,220 were paid for title investigation and making the purchase. Architect's fees were $46,800. Title insurance cost $3,600, and liability insurance during construction cost $3,900. Excavation cost $15,660. The contractor was paid $4,200,000. An assessment made by the city for pavement was $11,600. Interest costs during construction were $255,000. The cost of the land that should be recorded by Apple Co. is
Apple Co. purchased land as a factory site for $1,350,000. Apple paid $120,000 to tear down two buildings on the land. Salvage was sold for $8,100. Legal fees of $5,220 were paid for title investigation and making the purchase. Architect's fees were $46,800. Title insurance cost $3,600, and liability insurance during construction cost $3,900. Excavation cost $15,660. The contractor was paid $4,200,000. An assessment made by the city for pavement was $11,600. Interest costs during construction were $255,000. The cost of the land that should be recorded by Apple Co. is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Apple Co. purchased land as a factory site for $1,350,000. Apple paid $120,000 to tear down
two buildings on the land. Salvage was sold for $8,100. Legal fees of $5,220 were paid for title
investigation and making the purchase. Architect's fees were $46,800. Title insurance cost
$3,600, and liability insurance during construction cost $3,900. Excavation cost $15,660. The
contractor was paid $4,200,000. An assessment made by the city for pavement was $11,600.
Interest costs during construction were $255,000. The cost of the land that should be recorded
by Apple Co. is](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F75294564-340c-425f-aa10-b72a4b95332a%2Fcd93f57b-dd3f-4589-aac1-3a5e40286a45%2Fbx5pd7e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Apple Co. purchased land as a factory site for $1,350,000. Apple paid $120,000 to tear down
two buildings on the land. Salvage was sold for $8,100. Legal fees of $5,220 were paid for title
investigation and making the purchase. Architect's fees were $46,800. Title insurance cost
$3,600, and liability insurance during construction cost $3,900. Excavation cost $15,660. The
contractor was paid $4,200,000. An assessment made by the city for pavement was $11,600.
Interest costs during construction were $255,000. The cost of the land that should be recorded
by Apple Co. is
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