On December 1, 2010, Hogan Co. purchased a tract of land as a factory site for $800,000.The old building on the property was razed, and salvaged materials resulting fromdemolition were sold. Additional costs incurred and salvage proceeds realized duringDecember 2010 were as follows:150.Cost to raze old buildingLegal fees for purchase contract and to record ownershipTitle guarantee insuranceProceeds from sale of salvaged materials$70,00010,00016,0008,000In Hogan's December 31, 2010 statement of financial position, what amount should bereported as land?a. $826,000.b. $862,000.c. $888,000.d. $896,000.

Additional costs=Cost to raze+Legal fee+Title=$70,000+$10,000+$16,000=$96,000

Answered: On December 1, 2010, Hogan Co.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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