Determine the cost of the a. Land b. New building c. Land improvement
On January Johny Corp purchased a parcel of land as a factory site for P3.2M. An old building on the property was demolished right away and construction begun on a new warehouse that was completed April 30 of the same year. Costs incurred and
Cost of demolishing old building P280,000
Architect’s fee 317,000
Legal fee title investigation 41,000
Construction costs 9,500,000
Interest on specific borrowings 140,000
Landfill for building site 193,000
Clearing of tress form building site 96,000
Insurance on building for 1yr beginning April 30 150,000
Temporary buildings used for construction activities 290,000
Land survey 40,000
Excavation of basement 132,000
Salvage material from demolition sold 18,000
Timber sold from cleared trees 33,000
Cost of paving parking lot for adjoining bldg. 100,000
Cost of shrubs ,trees and other landscaping 130,000
Special assessment for street project 21,000
Building permit fees 171,000
Savings on construction 25,000
Determine the cost of the
a. Land
b. New building
c. Land improvement
Step by step
Solved in 2 steps
