On February 1, 2019, Edwards Corporation purchased a parcel of land as a factory site for $100,000. It demolished an old building or he property and began construction on a new building that was completed on October 2, 2019. Costs incurred during this period are: Demolition of old building $ 8,000 Architect's fees 25,000 Legal fees for title investigation and purchase contract 4.000 Construction costs 650,000 Edwards sold salvaged materials resulting from the demolition for $2,000. Required: 1. At what amount should Edwards record the cost of the land and the new building, respectively? 2. NEXT LEVEL If management misclassified a portion of the building's cost as part of the cost of the land, what would be the effect

On February 1, 2019, Edwards Corporation purchased a parcel of land as a factory site for $100,000. It demolished an old building or he property and began construction on a new building that was completed on October 2, 2019. Costs incurred during this period are: Demolition of old building $ 8,000 Architect's fees 25,000 Legal fees for title investigation and purchase contract 4.000 Construction costs 650,000 Edwards sold salvaged materials resulting from the demolition for $2,000. Required: 1. At what amount should Edwards record the cost of the land and the new building, respectively? 2. NEXT LEVEL If management misclassified a portion of the building's cost as part of the cost of the land, what would be the effect

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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