On March 1, 2016, Beldon Corporation purchased land as a factory site for $60,000. An old building on the prop-erty was demolished, and construction began on a new building that was completed on December 15, 2016. Costsincurred during this period are listed below:$ 4,000Demolition of old buildingArchitect's fees (for new building)Legal fees for title investigation of landProperty taxes on land (for period beginning March 1, 2016)12,0002,0003,000500,0005,000Construction costsInterest on construction loanSalvaged materials resulting from the demolition of the old building were sold for $2,000.Required:Determine the amounts that Beldon should capitalize as the cost of the land and the new building.

Plant Assets:Plant assets refer to the fixed assets, having a useful life of more than a year that…

Answered: On March 1, 2016, Beldon Corporation…

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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