On July 1 of the current year, Leonora Company purchased a parcel of land as a factory site for P3,200,000. An old building on the property was demolished and construction started on a new building that was completed December 31. Costs incurred on the construction project are listed below. Demolition of old building Architect fee Legal fee-title investigation Construction cost Imputed interest based on stock financing Landfill for building site Clearing of trees from building site Temporary building used for construction activities Land survey Excavation for basement Salvage materials from demolition Timber sold 1. What is the cost of the land? a. 3,730,000 b. 3,630,000 c. 3,860,000 d. 3,760,000 210,000 300,000 40,000 8,500,000 140,000 190,000 100,000 290,000 40,000 130,000 20,000 30,000
On July 1 of the current year, Leonora Company purchased a parcel of land as a factory site for P3,200,000. An old building on the property was demolished and construction started on a new building that was completed December 31. Costs incurred on the construction project are listed below. Demolition of old building Architect fee Legal fee-title investigation Construction cost Imputed interest based on stock financing Landfill for building site Clearing of trees from building site Temporary building used for construction activities Land survey Excavation for basement Salvage materials from demolition Timber sold 1. What is the cost of the land? a. 3,730,000 b. 3,630,000 c. 3,860,000 d. 3,760,000 210,000 300,000 40,000 8,500,000 140,000 190,000 100,000 290,000 40,000 130,000 20,000 30,000
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter2: Asset And Liability Valuation And Income Recognition
Section: Chapter Questions
Problem 11PC: Costs to Be Included in Historical Cost Valuation. At a cost of 200,000, Assume In-N-Out Burger...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning