Hocco Corporation acquires land for $92,500 cash. Additional costs are as follows: Expense Amount ($) Removal of old structure 450 Filling and grading 1,800 Salvage value of materials (200) from old structure Broker commission 1,250 Paving of parking lot Closing costs 12,500 (Not included in land cost) 620 What amount will Hocco Corporation record as the acquisition cost of the land?

Hocco Corporation acquires land for $92,500 cash. Additional costs are as follows: Expense Amount ($) Removal of old structure 450 Filling and grading 1,800 Salvage value of materials (200) from old structure Broker commission 1,250 Paving of parking lot Closing costs 12,500 (Not included in land cost) 620 What amount will Hocco Corporation record as the acquisition cost of the land?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...

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