Need help with this general accounting question Falcon Industries purchased land in 2017 for the purpose of constructing anew corporate office. The company incurred the following costs in 2017:Cost of land: $650,000Legal fees required to purchase land: $25,000Cost of demolishing an old warehouse on the land: $60,000Proceeds from the sale of scrap metal from the old warehouse: $12,000Construction costs of the new corporate office incurred so far: $300,000At what amount should Falcon Industries capitalize the land?

Step 1: Start with the cost of the land$650,000Step 2: Add legal fees$650,000 + $25,000 =…

Answered: Falcon Industries purchased land in…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.8MCP

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