Nicko Company purchased a tract of land as a factory site. Problem 28-5 (IAA) An old building was demolished and construction began on the new building. Purchase price of land and an old building Fair value of old building Cost of demolishing old building Title insurance and legal fees to purchase land Architect fee New building construction cost Survey before construction Building permit or payment to city hall for approval of building construction Excavation before new construction Liability insurance during construction New fence surrounding the new building Driveway, parking bay and safety lighting Cost of trees, shrube and other landscaping Cost of lighting and signage 4,500,000 250,000 300,000 200,000 950,000 8,000,000 100,000 150,000 200,000 100,000 100,000 550,000 300,000 100,000 1. What is the cost of the land? 4,3 50,000 a. 4,550,000 b. 4,800,000 c. 4,850,000 d. 4,450,000 2. What is the cost of the new building? a. 9,700,000 b. 9,750,000 c. 9,800,000 d. 9,950,000 3. What is the cost of land improvements? a. 950,000 b. 650,000 c. 850,000 d. 400,000 715

Nicko Company purchased a tract of land as a factory site. Problem 28-5 (IAA) An old building was demolished and construction began on the new building. Purchase price of land and an old building Fair value of old building Cost of demolishing old building Title insurance and legal fees to purchase land Architect fee New building construction cost Survey before construction Building permit or payment to city hall for approval of building construction Excavation before new construction Liability insurance during construction New fence surrounding the new building Driveway, parking bay and safety lighting Cost of trees, shrube and other landscaping Cost of lighting and signage 4,500,000 250,000 300,000 200,000 950,000 8,000,000 100,000 150,000 200,000 100,000 100,000 550,000 300,000 100,000 1. What is the cost of the land? 4,3 50,000 a. 4,550,000 b. 4,800,000 c. 4,850,000 d. 4,450,000 2. What is the cost of the new building? a. 9,700,000 b. 9,750,000 c. 9,800,000 d. 9,950,000 3. What is the cost of land improvements? a. 950,000 b. 650,000 c. 850,000 d. 400,000 715

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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