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Harris Teeter purchases a plot of land for $500,000. In addition to the purchase price, Harris Teeter pays $15,000 as a commission to their broker, $4,000 in filing fees, and $6,000 in other closing costs. Harris Teeter also spends $20,000 to demolish a dilapidated barn located on the property and salvages $500 of timber and scrap metal that it is able to sell to a local construction company. What would the carrying value of the land be on Harris Teeter's books?

Harris Teeter purchases a plot of land for $500,000. In addition to the purchase price, Harris Teeter pays $15,000 as a commission to their broker, $4,000 in filing fees, and $6,000 in other closing costs. Harris Teeter also spends $20,000 to demolish a dilapidated barn located on the property and salvages $500 of timber and scrap metal that it is able to sell to a local construction company. What would the carrying value of the land be on Harris Teeter's books?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Harris Teeter purchases a plot of land for $500,000. In addition to the purchase price, Harris Teeter pays $15,000 as a commission to their broker, $4,000 in filing fees, and $6,000 in other closing costs. Harris Teeter also spends $20,000 to demolish a dilapidated barn located on the property and salvages $500 of timber and scrap metal that it is able to sell to a local construction company. What would the carrying value of the land be on Harris Teeter's books?
Transcribed Image Text:1. Harris Teeter purchases a plot of land for $500,000. In addition to the purchase price, Harris Teeter pays $15,000 as a commission to their broker, $4,000 in filing fees, and $6,000 in other closing costs. Harris Teeter also spends $20,000 to demolish a dilapidated barn located on the property and salvages $500 of timber and scrap metal that it is able to sell to a local construction company. What would the carrying value of the land be on Harris Teeter's books?
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