On March 1, 2024, Beldon Corporation purchased land as a factory site for $72,000. 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 $ 5,000 Architect’s fees (for new building) 11,000 Legal fees for title investigation of land 8,000 Property taxes on land (for period beginning March 1, 2024) 4,200 Construction costs 620,000 Interest on construction loan 6,000 Salvaged materials resulting from the demolition of the old building were sold for $3,200. Required: Determine the amounts that Beldon should capitalize as the cost of the land and the new building.
On March 1, 2024, Beldon Corporation purchased land as a factory site for $72,000. 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 $ 5,000 Architect’s fees (for new building) 11,000 Legal fees for title investigation of land 8,000 Property taxes on land (for period beginning March 1, 2024) 4,200 Construction costs 620,000 Interest on construction loan 6,000 Salvaged materials resulting from the demolition of the old building were sold for $3,200. Required: Determine the amounts that Beldon should capitalize as the cost of the land and the new building.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On March 1, 2024, Beldon Corporation purchased land as a factory site for $72,000. 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 | $ 5,000 |
|---|---|
| Architect’s fees (for new building) | 11,000 |
| Legal fees for title investigation of land | 8,000 |
| Property taxes on land (for period beginning March 1, 2024) | 4,200 |
| Construction costs | 620,000 |
| Interest on construction loan | 6,000 |
Salvaged materials resulting from the demolition of the old building were sold for $3,200.
Required:
Determine the amounts that Beldon should capitalize as the cost of the land and the new building.
Transcribed Image Text:Capitalized cost of land:
Total cost of land
$
0
Transcribed Image Text:Capitalized cost of building:
Total cost of building
$
0
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