exas Co. purchased land as a factory site for $1,500,000. Texas paid $200,000 to tear down two buildings on the land. Legal fees of $10,000 were paid for title investigation and making the purchase. Architect's fees were $40,000. Title insurance cost $5,000, and liability insurance during construction cost $4,000. Excavatio

exas Co. purchased land as a factory site for $1,500,000. Texas paid $200,000 to tear down two buildings on the land. Legal fees of $10,000 were paid for title investigation and making the purchase. Architect's fees were $40,000. Title insurance cost $5,000, and liability insurance during construction cost $4,000. Excavatio

Name: Texas Co. purchased land as a factory site for $1,500,000. Texas paid
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Description: Texas Co. purchased land as a factory site for $1,500,000. Texas paid $200,000 to tear down two buildings on the land. Legal fees of $10,000 were paid for title investigation and making the purchase. Architect's fees were $40,000. Title insurance cos

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 46P

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Baron Co. purchased land as a factory site for $600,000. Baron paid $60,000 to tear down two buildings on the land. Salvage was sold for $5,400. Legal fees of $3,480 were paid for title investigation and making the purchase. Architect's fees were $31,200. Title insurance cost $2,400, and liability insurance during construction cost $2,600. Excavation cost $10,440. The contractor was paid $2,200,000. An assessment made by the city for pavement was $6,400. Interest costs during construction were $170,000. The cost of the land that should be recorded by Baron Co. is $ and the cost of the building that should be recorded by Baron Co. is $
Apple Co. purchased land as a factory site for $1,350,000. Apple paid $120,000 to tear down two buildings on the land. Salvage was sold for $8,100. Legal fees of $5,220 were paid for title investigation and making the purchase. Architect's fees were $46,800. Title insurance cost $3,600, and liability insurance during construction cost $3,900. Excavation cost $15,660. The contractor was paid $4,200,000. An assessment made by the city for pavement was $11,600. Interest costs during construction were $255,000. The cost of the land that should be recorded by Apple Co. is
Crane Corp. purchased land as a factory site for $280000. They paid $12200 to tear down two buildings on the land, and the salvage from these old buildings was sold for $1310. Legal fees of $830 were paid for title investigation and making the purchase. Architect's fees were $10370. Title insurance cost $610, and liability insurance during construction cost $650. Excavation costs were $2970. A contractor was paid $677000 to construct the new building. An assessment made by the city for pavement was $1740. Interest costs during construction were $43300. The cost of the land should be recorded at $292330. O $294770. O $296510. O $294070.
Vaughn Co. purchased land as a factory site for $520,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $54.600 to raze the old buildings and sold salvaged lumber and brick for $8,190. Legal fees of $2.405 were paid for title investigation and drawing the purchase contract. Vaughn paid $2,860 to an engineering firm for a land survey, and $88,400 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $1,950, and a liability insurance premium paid during construction was $1,170. The contractor's charge for construction was $3,562,000. The company paid the contractor in two installments: $1,560,000 at the end of 3 months and $2,002,000 upon completion. Interest costs of $221.000 were incurred to finance the construction. Determine the cost of the land and the cost of the building as they should be recorded on the books of Vaughn…
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Coronado Co. purchased land as a factory site for $496,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $52,080 to raze the old buildings and sold salvaged lumber and brick for $7,812. Legal fees of $2,294 were paid for title investigation and drawing the purchase contract. Coronado paid $2,728 to an engineering firm for a land survey, and $84,320 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $1,860, and a liability insurance premium paid during construction was $1,116. The contractor's charge for construction was $3,397,600. The company paid the contractor in two installments: $1,488,000 at the end of 3 months and $1,909,600 upon completion. Interest costs of $210,800 were incurred to finance the construction. Determine the cost of the land and the cost of the building as they should be recorded on the books of…
Sheffield Co. purchased land as a factory site for $536,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $56,280 to raze the old buildings and sold salvaged lumber and brick for $8,442. Legal fees of $2,479 were paid for title investigation and drawing the purchase contract. Sheffield paid $2,948 to an engineering firm for a land survey, and $91,120 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $2,015, and a liability insurance premium paid during construction was $1,206. The contractor's charge for construction was $3,671,600. The company paid the contractor in two installments: $1,608,000 at the end of 3 months and $2,063,600 upon completion. Interest costs of $227,800 were incurred to finance the construction. Determine the cost of the land and the cost of the building as they should be recorded on the books of…
Vaughn Co. purchased land as a factory site for $456,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months.The company paid $47,880 to raze the old buildings and sold salvaged lumber and brick for $7,182. Legal fees of $2,109 were paid for title investigation and drawing the purchase contract. Vaughn paid $2,508 to an engineering firm for a land survey, and $77,520 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $1,710, and a liability insurance premium paid during construction was $1,026. The contractor’s charge for construction was $3,123,600. The company paid the contractor in two installments: $1,368,000 at the end of 3 months and $1,755,600 upon completion. Interest costs of $193,800 were incurred to finance the construction.Determine the cost of the land and the cost of the building as they should be recorded on the books of Vaughn Co.…
Moby Co. purchased land costing $2,550,000 as a future factory site. Moby paid $240,000 to tear down two buildings on the land. Some Amish folks came along and paid them from the scrap lumber. They paid $2,450 cash for it. Moby paid the lawyer $4,555 in fees for the title investigation and for making the purchase. The architect's fees were $85,600. The cost for the title insurance was $4,600, and liability insurance costs during the construction phase for the factory was $12,640. The excavation cost to clear the ground for the new building was $19,450. They paid the building contractor $8,200,000. The interest costs during the construction phase of the building was $465,000. What should Moby record as cost of the land? Question options: 2,796,705 2,882,305 2,799,155 2,550,000
Carla Vista Corp. purchased land as a factory site for $330000. They paid $10400 to tear down two buildings on the land, and the salvage from these old buildings was sold for $1330. Legal fees of $840 were paid for title investigation and making the purchase. Architect's fees were $10490. Title insurance cost $620, and liability insurance during construction cost $650. Excavation costs were $3430. A contractor was paid $657000 to construct the new building. An assessment made by the city for pavement was $1690. Interest costs during construction were $43000. The cost of the land should be recorded at Select answer from the options below $342930. $344620. $340530. $342220.
Peace Co. purchased land as a factory site for P300,000. Peace paid P30,000 to tear down two building on the land. Salvage was sold for P2,700. Legal fees of P1,740 were paid for title investigation and making the purchase. Architect's fees were P15,600. Land Title insurance cost P1,200. Liability insurance during construction cost, P1300. Excavation cost P5,220. The contractor was paid P1,100,000. An assessment made by the city for pavement was P3,200. Interest costs during construction were P85,000. The cost of the land is The cost of the building is a. 1,201,900b. 1,207,120c. 1,234,420d. none of these