On March 1, 2024, Beldon Corporation purchased land as a factory site for $66,000. An old building on the propertywas demolished, and construction began on a new building that was completed on December 15, 2024. Costs incurredduring this period are listed below:Demolition of old buildingArchitect's fees (for new building)Legal fees for title investigation of landProperty taxes on land (for period beginning March 1, 2024)Construction costsInterest on construction loan$ 7,00018,0005,0003,600560,0008,000Salvaged 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 LandCost of NewBuildingDetermine 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 cost of land

Step 1: Identify the initial cost of the land.The initial purchase cost of the land is $66,000.Step…

Answered: On March 1, 2024, Beldon Corporation…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Acquisition of Land and Building On February 1, 2019, Edwards Corporation purchased a parcel of land as a factory site for $100,000. It demolished an old building on the 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 20,000 Legal fees for title investigation and purchase contract 5,000 Construction costs 625,000 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? If an input box should be blank, enter a zero. Land Building Purchase price of land Demolition of old building Architect's fees Legal fees Construction costs Salvaged materials Total 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 the financial statements?
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