During the current year, Alanna Co. had the following transactions pertaining to its new office building. Purchase price of land $120,000 Legal fees for contracts to purchase land 5,000 Architech fees 15,000 Demolition of the old building on site 12,000 Sale of scrap from old building 7,000 Construction cost of new building 680,000 A. 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. $1 B. What should Alanna Co. record on its books for the building?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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During the current year, Alanna Co. had the following
transactions pertaining to its new office building.
Purchase price of land
$120,000
Legal fees for contracts to purchase land
5,000
Architech fees
15,000
Demolition of the old building on site
12,000
Sale of scrap from old building
7,000
Construction cost of new building
680,000
A. What should Alanna Co. record on its books for the land?
K) 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.
$1
B. What should Alanna Co. record on its books for the
building?
Transcribed Image Text:During the current year, Alanna Co. had the following transactions pertaining to its new office building. Purchase price of land $120,000 Legal fees for contracts to purchase land 5,000 Architech fees 15,000 Demolition of the old building on site 12,000 Sale of scrap from old building 7,000 Construction cost of new building 680,000 A. What should Alanna Co. record on its books for the land? K) 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. $1 B. What should Alanna Co. record on its books for the building?
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