During the current year, Alanna Co. had the following transactions pertaining to its new office building. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. What should Alanna Co. record on its books for the building?
During the current year, Alanna Co. had the following transactions pertaining to its new office building. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. What should Alanna Co. record on its books for the building?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- During the current year, Alanna Co. had the following transactions pertaining to its new office building.
- What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost.
- What should Alanna Co. record on its books for the building?
Transcribed Image Text:Purchase price of land
Legal fees for contracts to purchase land
Architect fees
$120,000
4,000
16,000
10,000
6,000
700,000
Demolition of the old building on site
Sale of scrap from old building
Construction cost of new building
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