hello tutor please help me Hamilton Industries hired an architect to design plans and a construction firm tobuild a new office building on a parcel of land it owns. The following data relates tothe building:Price paid to the construction firm: $350,000. Architect fees: $22,000• Permit fees: $7,500•Site preparation costs: $18,500What is the total cost of the new office building?

Step 1: Definition of Total Cost of a New Office BuildingThe total cost of a new office building…

Answered: Hamilton Industries hired an architect…

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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Martini Company incurred the following costs in purchasing a land as a factory site:Purchase price 2,400,000Cost of tearing down old building 240,000Legal fee for title investigation 15,000Title insurance 10,000 Architect fee 125,000Liability insurance during construction 25,000Excavation cost 40,000Payment to building contractor 8,800,000Special assessment by city for public improvement 30,000Interest cost during construction 300,000 What is the cost of the building?
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The Venus Company hired an architect to design plans and a construction firm to build a new office building on a parcel of land it owns. The following data relates to the building: Price paid to the construction firm $320,000 Architect fees 18,000 1,200 Permit fees Property taxes during the construction period 800 Insurance premium for the first year of operations 3,000 Property taxes during the first year of operations 6,000 The total acquisition cost of the new building is: a. $349,000. b. $340,000. c. $338,000. d. $320,000.
9. A contractor has a contract to remove and replace the existing landscape and sidewalks around an office building. The work includes demolition of the existing landscaping and sidewallks, importing fill and grading around the office building, constructing new concrete sidewalks, and new landscaping. The contractor uses the cost codes in Figure 2-6. The contractor will perform all of the work except placing the site concrete and the landscaping. The original estimate for the demolition was $30,000, and a $5,000 change order has been approved to remove some unexpected debris found during the demolition. The demolition work has been completed at a cost of $33,562. The original estimate for the fill and grading was $17,500 and a $2,000 change order for importing additional fill to replace the debris has been approved. The fill and grading costs to date are $17,264, and the estimated cost to complete has been estimated at $2,236. The original budget for the labor to pour the concrete was…
A company needed a new building. It found a suitable location with an existing old building on the land. The company reached an agreement to buy the land and the old building for $935,000 cash. The old building was demolished to make way for the needed new building. Following is information regarding the demolition of the old building and construction of the new one. Construction cost of new building Cost for parking lot Demolition of old building Prepare a single journal entry to record the above costs assuming all transactions are paid in cash. View transaction list Journal entry worksheet
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
During the current year, Bear Company had the following transactions pertaining to a new office building:Purchase price of land- 600,000Legal fees for contract to purchase land- 20,000Architect fee -80,000Demolition of old building on site to make roomfor construction of new building -50,000Sale of scrap from old building -30,000Construction cost of new building fully completed -3,500,0001. What amount should be reported as cost of land?2. What amount should be reported as cost of building?
Which of the following are the capitalized costs of the land and the new building respectively
Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price $ 187,000 Real estate commissions 16,200 Legal fees 2,000 Expenses of clearing the land 3,200 Expenses to remove old building 2,200 What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?
Wilson Machine Tools, Inc., a manufacturer of fabricated metal products, is considering the purchase of a high-tech computer-controlled milling machine at a cost of $95,000. The cost of installing the machine, preparing the site, wiring, and rearranging other equipment is expected to be $15,000. This installation cost will be added to the cost of the machine in order to determine the total cost basis for depreciation. Special jigs and tool die for a particular product will also be required at a cost of $10,000. The milling machine is expected to last 10 years, but the jigs and dies for only five years. Therefore, another set of jigs and dies has to be purchased at the end of five years. The milling machine will have a $10,000 salvage value at the end of its life, and the special jigs and dies are worth only$300 as scrap metal at any time in their lives. The machine is classified as a seven-year MACRS property, and the special jigs and dies are classified as a three-year MACRS property.…

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