On March 1, 2020, Swifty Corporation acquired real estate on which it planned to construct a small office building. The company paid $90,000 in cash. An old warehouse on the property was razed at a cost of $10,700; the salvaged materials were sold for $3,300. Additional expenditures before construction began included $1,900 attorney’s fee for work concerning the land purchase, $4,600 real estate broker’s fee, $7,400 architect’s fee, and $14,700 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Cost of land $ ?
On March 1, 2020, Swifty Corporation acquired real estate on which it planned to construct a small office building. The company paid $90,000 in cash. An old warehouse on the property was razed at a cost of $10,700; the salvaged materials were sold for $3,300. Additional expenditures before construction began included $1,900 attorney’s fee for work concerning the land purchase, $4,600 real estate broker’s fee, $7,400 architect’s fee, and $14,700 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Cost of land $ ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On March 1, 2020, Swifty Corporation acquired real estate on which it planned to construct a small office building. The company paid $90,000 in cash. An old warehouse on the property was razed at a cost of $10,700; the salvaged materials were sold for $3,300. Additional expenditures before construction began included $1,900 attorney’s fee for work concerning the land purchase, $4,600 real estate broker’s fee, $7,400 architect’s fee, and $14,700 to put in driveways and a parking lot.
(a)
Determine the amount to be reported as the cost of the land.
| Cost of land | $ ? |
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