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LU08.1: Determining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $28,000 and giving a short-term note for $267,000. Legal fees paid were $1,660, delinquent taxes assumed were $9,700, and fees paid to remove an old building from the land were $22,800. Materials salvaged from the demolition of the building were sold for $4,400. A contractor was paid $896,800 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet. $..... Answer is not: $ 57,750 / $324,760

LU08.1: Determining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $28,000 and giving a short-term note for $267,000. Legal fees paid were $1,660, delinquent taxes assumed were $9,700, and fees paid to remove an old building from the land were $22,800. Materials salvaged from the demolition of the building were sold for $4,400. A contractor was paid $896,800 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet. $..... Answer is not: $ 57,750 / $324,760

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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LU08.1: Determining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $28,000 and giving a short-term note for $267,000. Legal fees paid were $1,660, delinquent taxes assumed were $9,700, and fees paid to remove an old building from the land were $22,800. Materials salvaged from the demolition of the building were sold for $4,400. A contractor was paid $896,800 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet. $..... Answer is not: $ 57,750 / $324,760
Transcribed Image Text:LU08.1: Determining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $28,000 and giving a short-term note for $267,000. Legal fees paid were $1,660, delinquent taxes assumed were $9,700, and fees paid to remove an old building from the land were $22,800. Materials salvaged from the demolition of the building were sold for $4,400. A contractor was paid $896,800 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet. $..... Answer is not: $ 57,750 / $324,760
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