Fubu Corporation purchased a 5-acre tract of land in New Albany, Ohio for a building site for $500,000. The company demolished the old building at a cost of $18,000, but was able to sell scrap from the building for $1,000. The cost of title transfer was $800 and attorney fees for reviewing the contract was $1500. Property taxes paid were $4,000, of which $450 covered the period after the purchase date. The capitalized cost of the land is:
Fubu Corporation purchased a 5-acre tract of land in New Albany, Ohio for a building site for $500,000. The company demolished the old building at a cost of $18,000, but was able to sell scrap from the building for $1,000. The cost of title transfer was $800 and attorney fees for reviewing the contract was $1500. Property taxes paid were $4,000, of which $450 covered the period after the purchase date. The capitalized cost of the land is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Fubu Corporation purchased a 5-acre tract of land in New Albany, Ohio for a building site for $500,000. The company demolished the old building at a cost of $18,000, but was able to sell scrap from the building for $1,000. The cost of title transfer was $800 and attorney fees for reviewing the contract was $1500. Property taxes paid were $4,000, of which $450 covered the period after the purchase date. The capitalized cost of the land is:
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