Entity B purchased land to build a pharmacy. It incurred the following costs: Purchase price of land $34,000 Tear down existing building on land $15,000 Sale of salvage materials from tear down $5,000 Clear and fill the land $6,500 Construction costs for new pharmacy $500,000 $15,000 $25,000 $30,000 Outdoor lighting Paving parking lot Landscaping What is the amount that should be debited to the Land Improvements (not Land) account? $50,500 $550,500 $70,000 $620,500
Entity B purchased land to build a pharmacy. It incurred the following costs: Purchase price of land $34,000 Tear down existing building on land $15,000 Sale of salvage materials from tear down $5,000 Clear and fill the land $6,500 Construction costs for new pharmacy $500,000 $15,000 $25,000 $30,000 Outdoor lighting Paving parking lot Landscaping What is the amount that should be debited to the Land Improvements (not Land) account? $50,500 $550,500 $70,000 $620,500
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 7PB: Tree Lovers Inc. purchased 2,500 acres of woodland in which it intends to harvest the complete...
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Haresh gujariya
![Entity B purchased land to build a pharmacy. It incurred the following costs:
Purchase price of land
Tear down existing building on land
Sale of salvage materials from tear down
Clear and fill the land
Construction costs for new pharmacy
Outdoor lighting
Paving parking lot
Landscaping
$34,000
$15,000
$5,000
$6,500
$500,000
$15,000
$25,000
$30,000
What is the amount that should be debited to the Land Improvements (not Land) account?
$50,500
$550,500
$70,000
$620,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b51219d-4384-4c8c-831e-610c6ddda0ca%2F4f0230d9-a0dc-4cbd-a3e4-d10ca57acdab%2F7yn2rs3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Entity B purchased land to build a pharmacy. It incurred the following costs:
Purchase price of land
Tear down existing building on land
Sale of salvage materials from tear down
Clear and fill the land
Construction costs for new pharmacy
Outdoor lighting
Paving parking lot
Landscaping
$34,000
$15,000
$5,000
$6,500
$500,000
$15,000
$25,000
$30,000
What is the amount that should be debited to the Land Improvements (not Land) account?
$50,500
$550,500
$70,000
$620,500
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