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chase price (the old building has no fair value) ment of property taxes on the land for 2022 and 2023 (ed -search and insurance cial assessment for city improvements on water and se ding permit to destroy existing building on the land tract cost of new building nitect fee walk and parking lot insurance on building – 1 year is the cost of the land? 2.860,000 2,810,000 2,800,000 2.750,000

chase price (the old building has no fair value) ment of property taxes on the land for 2022 and 2023 (ed -search and insurance cial assessment for city improvements on water and se ding permit to destroy existing building on the land tract cost of new building nitect fee walk and parking lot insurance on building – 1 year is the cost of the land? 2.860,000 2,810,000 2,800,000 2.750,000

FINANCIAL ACCOUNTING
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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Mode 8- Construction On January 1, 2023. Amelia Company decided to expand operations and had purchased land an old building for construction of new manufacturing plant. The following costs were incurred in purchasing the property and constructing the new building: Purchase price (the old building has no fair value) Payment of property taxes on the land for 2022 and 2023 (equally for each year) Title search and insurance 2,500,000 100,000 50,000 Special assessment for city improvements on water and sewer Building permit Cost to destroy existing building on the land Contract cost of new building 150,000 30,000 60,000 7.000,000 Architect fee 200,000 Sidewalk and parking lot Fire insurance on building – 1 year 100,000 40,000 15) What is the cost of the land? A 2.860,000 B. 2.810,000 C. 2.800,000 D. 2.750,000 16) What is the cost of the building? A 7,440,000 B. 7.290,000 C. 7,390,000 D. 7.330,000
Transcribed Image Text:Mode 8- Construction On January 1, 2023. Amelia Company decided to expand operations and had purchased land an old building for construction of new manufacturing plant. The following costs were incurred in purchasing the property and constructing the new building: Purchase price (the old building has no fair value) Payment of property taxes on the land for 2022 and 2023 (equally for each year) Title search and insurance 2,500,000 100,000 50,000 Special assessment for city improvements on water and sewer Building permit Cost to destroy existing building on the land Contract cost of new building 150,000 30,000 60,000 7.000,000 Architect fee 200,000 Sidewalk and parking lot Fire insurance on building – 1 year 100,000 40,000 15) What is the cost of the land? A 2.860,000 B. 2.810,000 C. 2.800,000 D. 2.750,000 16) What is the cost of the building? A 7,440,000 B. 7.290,000 C. 7,390,000 D. 7.330,000
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