Facetious Company incurred the following expenditures related to the construction of a new home office: Purchase price of land and an old apartment building 2,000,000 Fair value of land 1,800,000 Legal fees, including fee for title search 10,000 Payment of land mortgage and related interest due at time of sale 50,000 Payment of delinquent property taxes assumed 20,000 Cost of razing the apartment building 30,000 Grading and drainage on land site 15,000 Architect fee on new building 200,000 Payment to building contractor 8,000,000 Interest cost on specific borrowing during construction 300,000 Payment of medical bills of employees accidentally injured while inspecting building construction 10,000 Cost of paving driveway and parking lot 40,000 Cost of trees, shrubs and other landscaping 55,000 Cost of installing lights in parking lot 5,000 Premium for insurance on building during construction 25,000 Cost of open house party to celebrate opening of building 60,000 1. What is the cost of land? 2. What is the cost of new building? 3. What is the cost of land improvement
Facetious Company incurred the following expenditures related to the construction of a new home office:
Purchase price of land and an old apartment building 2,000,000
Fair value of land 1,800,000
Legal fees, including fee for title search 10,000
Payment of land mortgage and related interest due at time of sale 50,000
Payment of delinquent property taxes assumed 20,000
Cost of razing the apartment building 30,000
Grading and drainage on land site 15,000
Architect fee on new building 200,000
Payment to building contractor 8,000,000
Interest cost on specific borrowing during construction 300,000
Payment of medical bills of employees accidentally injured while inspecting building construction 10,000
Cost of paving driveway and parking lot 40,000
Cost of trees, shrubs and other landscaping 55,000
Cost of installing lights in parking lot 5,000
Premium for insurance on building during construction 25,000
Cost of open house party to celebrate opening of building 60,000
1. What is the cost of land?
2. What is the cost of new building?
3. What is the cost of land improvement?
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