Entity B purchased land to build a new plant. It incurred the following Purchase price of land Tear down existing building on land Sale of salvage from tear down Clear and fill the land $390,000 $47,000 $12,000 $23,000 $1,500,000 $90,000 Construction costs for new building Lighting and paving a parking area What is the amount that should be debited to the Land account?
Entity B purchased land to build a new plant. It incurred the following Purchase price of land Tear down existing building on land Sale of salvage from tear down Clear and fill the land $390,000 $47,000 $12,000 $23,000 $1,500,000 $90,000 Construction costs for new building Lighting and paving a parking area What is the amount that should be debited to the Land account?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
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Entity B purchased land to build a new plant. It incurred the following costs:
Purchase price of land
Tear down existing building on land
Sale of salvage from tear down
Clear and fill the land
Construction costs for new building
Lighting and paving a parking area
$390,000
$47,000
$12,000
$23,000
$2,038,000
$1,948,000
$448,000
$1,500,000
$90,000
What is the amount that should be debited to the Land account?
O $460,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32962c33-d437-4e75-9a6c-9102db644571%2Fce02bd72-c089-467a-b8d9-97fb13c345c9%2Fma0cebj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3
Entity B purchased land to build a new plant. It incurred the following costs:
Purchase price of land
Tear down existing building on land
Sale of salvage from tear down
Clear and fill the land
Construction costs for new building
Lighting and paving a parking area
$390,000
$47,000
$12,000
$23,000
$2,038,000
$1,948,000
$448,000
$1,500,000
$90,000
What is the amount that should be debited to the Land account?
O $460,000
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