Milloy Self Storage purchased land, paying $155,000 cash as a down payment and signing a $145,000 note payable for the balance. Milloy also had to pay delinquent property tax of $2,500, title insurance costing $6,500, and $12,000 to level the land and remove an unwanted building. The company paid $50,000 to add soil for the foundation and then constructed an office building at a cost of $850,000. It also paid $49,000 for a fence around the property. $17,000 for the company sign near the property entrance, and $4,000 for lighting of the grounds. Read the requirement. The cost of the land is
Milloy Self Storage purchased land, paying $155,000 cash as a down payment and signing a $145,000 note payable for the balance. Milloy also had to pay delinquent property tax of $2,500, title insurance costing $6,500, and $12,000 to level the land and remove an unwanted building. The company paid $50,000 to add soil for the foundation and then constructed an office building at a cost of $850,000. It also paid $49,000 for a fence around the property. $17,000 for the company sign near the property entrance, and $4,000 for lighting of the grounds. Read the requirement. The cost of the land is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Milloy Self Storage purchased land, paying $155,000 cash as a down payment and signing a $145,000 note payable for the balance. Milloy also had to pay delinquent property tax of $2,500, title insurance costing $6,500, and
$12,000 to level the land and remove an unwanted building. The company paid $50,000 to add soil for the foundation and then constructed an office building at a cost of $650,000. It also paid $49,000 for a fence around
the property. $17,000 for the company sign near the property entrance, and $4,000 for lighting of the grounds.
Read the requirement.
The cost of the land is
Requirement
1. What is the capitalized cost of each of Milloy's land, land improvements.
and building?
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