On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for $845,000. An existing building on the site was demolished and thenew factory was completed on October 11, Year 1. Additional cost data are shown below:Construction cost of new building$ 1,032,000Real estate and attorney feesArchitect feesCost to demolish old buildingSalvage recovery from old buildingWhat is the capitalized cost of the new building?O $1,205,900O $1,120,000O $1,105,000O $1,184,90021,00088,00079,900(15,000)

d) $1,184,900Explanation:The capitalized cost of the new building is d) $1,184,900.Here's how to…

Answered: On January 6, Year 1, Mount Jackson…

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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A company purchased property for a building site. The costs associated with the property were: Purchase price $175,000 Real estate commissions 15,000 Legal fees. Expenses of clearing the land Expenses to remove old building 800 2,000 1,000 What portion of these costs should be allocated to the cost of the land and what portion should be alloca the cost of the new building? $175,800 to Land; $18,800 to Building O $190,000 to Land; $3,800 to Building $190,800 to Land; $1,000 to Building O $192,800 to Land; $0 to Building O $193,800 to Land; $0 to Building
Shahia Company bought a building for $88,000 cash and the land on which it was located for $111,000 cash. The company paid transfer costs of $16,000 ($8,000 for the building and $8,000 for the land). Renovation costs on the building before it could be used were $15,000. 8-3 Part 1 equired: Prepare the journal entry to record the purchase of the property, including all relevant expenditures. Assume that all transaction ere for cash and that all purchases occurred at the start of the year. ote: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list View journal entry worksheet No 1 Transaction a Building Land Cash General Journal DHOL S Debit 5 — Credit Next Ⓒ
On January 1, 2021, LMT Inc. acquired a piece of land to construct a new office building. You have the following information about this transaction: Price of land $180,000 Tax on purchase of land 5% of price Legal fees to transfer property of land to LMT $4,500 Cost of demolishing old building on land 5,600 Income from sale of windows of old building demolished 500 Cost of new office building foundation 23,400 Cost of office building construction 460,000 Cost of insurance during construction 2,000 Cost to repair a piece of equipment used in the office building’s construction 1,000 Cost of annual insurance on office building after the construction is finished 6,000 LMT management decided to allocate the following amounts to the parts of the office building, and estimated the corresponding useful lives and residual values as follows: Allocated cost Useful life Residual value Windows $50,000 10 years…
On March 1, 2024, Beldon Corporation purchased land as a factory site for $66,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2024. Costs incurred during this period are listed below: Demolition of old building Architect's fees (for new building) Legal fees for title investigation of land Property taxes on land (for period beginning March 1, 2024) Construction costs Interest on construction loan $ 7,000 18,000 5,000 3,600 560,000 8,000 Salvaged materials resulting from the demolition of the old building were sold for $2,600. Required: Determine the amounts that Beldon should capitalize as the cost of the land and the new building. Complete this question by entering your answers in the tabs below. Cost of Land Cost of New Building Determine the amounts that Beldon should capitalize as the cost of the land. Note: Amounts to be deducted should be indicated with a minus sign. Capitalized cost of land: Total…
please answer should be correct and well explained with all other workanswer in text
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On July 1, 2024, a company purchased a $550,000 tract of land that is intended to be the site of a new office complex. The company incurred additional costs and realized salvage proceeds during 2024 as follows: Demolition of existing building on site $ 72,000 Legal and other fees to close escrow 12,400 Proceeds from sale of demolition scrap 9,800 What would be the balance in the land account as of December 31, 2024?
Determining cost of land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $36,000 in cash and giving a short-term note for $273,000. Legal fees paid were $1,850, delinquent taxes assumed were $11,300, and fees paid to remove an old building from the land were $22,300. Materials salvaged from the demolition of the building were sold for $4,600. A contractor was paid $939,400 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.
Question 1
Determine the Cost of Land Village Delivery Company purchased a lot to construct a new warehouse for $243,000, paying $28,000 in cash and giving a short-term note for the remainder. Legal fees paid in connection with the purchase were $2,075, delinquent taxes assumed were $12,300, and fees paid to remove an old building from the land were $17,400. Materials salvaged from the demolition of the building were sold for $4,100. A contractor was paid $823,800 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet. X
A company needed a new building. It found a suitable location with an existing old building on the land. The company reached an agreement to buy the land and the old building for $957,000 cash. The old building was demolished to make way for the needed new building. Following is information regarding the demolition of the old building and construction of the new one.Construction cost of new buildingCost for parking lotDemolition of old building$ 8,912,000305,000299,000Prepare a single journal entry to record the above costs assuming all transactions are paid in cash. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

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