### Determine Acquisition Costs of Land**Example 9.3 (Learning Objective 1), Application Problem**On March 1, 2022, Boyd Company acquired real estate on which it planned to construct a small office building, by paying $80,000 in cash. An old warehouse on the property was demolished at a cost of $8,200; the salvaged materials were sold for $1,700. Additional expenditures before construction began included $1,900 attorney’s fee for work concerning the land purchase, $5,200 real estate broker’s fee, $9,100 architect’s fee, and $14,000 to put in driveways and a parking lot.**Instructions**a. Determine the amount to be recorded as the cost of the land.b. For each cost not used in part (a), indicate the account to be debited.---### Understand Depreciation Concepts**Example 9-B (Learning Objective 2)**Alysha Mead has prepared the following list of statements about depreciation: [Text continues beyond this section, details not provided in the image.]

Given, Cash payment made for acquiring the real estate = $80,000 Demolished…

E9.3 (LO 1), AP On March 1, 2022, Boyd Company acquired real estate, on which it planned to construct a small office building, by paying $80,000 in cash. An old warehouse on the proper was demolished at a cost of $8,200; the salvaged materials were sold for $1,700. Additional expenditures before construction began included $1,900 attorney's fee for work concerning the lar purchase, $5,200 real estate broker's fee, $9,100 architect's fee, and $14,000 to put in driveways and a parking lot. Instructions a. Determine the amount to be recorded as the cost of the land. b. For each cost not used in part (a), indicate the account to be debited.

E9.3 (LO 1), AP On March 1, 2022, Boyd Company acquired real estate, on which it planned to construct a small office building, by paying $80,000 in cash. An old warehouse on the proper was demolished at a cost of $8,200; the salvaged materials were sold for $1,700. Additional expenditures before construction began included $1,900 attorney's fee for work concerning the lar purchase, $5,200 real estate broker's fee, $9,100 architect's fee, and $14,000 to put in driveways and a parking lot. Instructions a. Determine the amount to be recorded as the cost of the land. b. For each cost not used in part (a), indicate the account to be debited.

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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