On March 31, 2023, Capital Investment Advisers paid $4,570,000 for land with two buildings on it. The plan was to demolish Building 1 and build a new store (Building 3) in its place. Building 2 was to be used as a company office and was appraised at a value of $1,074.790. A lighted parking lot near Building 2 had improvements (Land Improvements 1) valued at $607.490. Without considering the buildings or improvements, the tract of land was estimated to have a value of $2,990,720. Capital incurred the following additional costs: Cost to demolish Building 1 Cost of additional landscaping Cost to construct new building (Building 3) Cost of new land improvements near Building 2 (Land Improvements 2) Required: 1. Allocate the costs incurred by Capital to the appropriate columns and total each column. Purchase price Demolition Land Building 2 Building 3 $703,160 272,020 2,476,000 254,600 Land Land Improvements 1 Improvements 2

On March 31, 2023, Capital Investment Advisers paid $4,570,000 for land with two buildings on it. The plan was to demolish Building 1 and build a new store (Building 3) in its place. Building 2 was to be used as a company office and was appraised at a value of $1,074.790. A lighted parking lot near Building 2 had improvements (Land Improvements 1) valued at $607.490. Without considering the buildings or improvements, the tract of land was estimated to have a value of $2,990,720. Capital incurred the following additional costs: Cost to demolish Building 1 Cost of additional landscaping Cost to construct new building (Building 3) Cost of new land improvements near Building 2 (Land Improvements 2) Required: 1. Allocate the costs incurred by Capital to the appropriate columns and total each column. Purchase price Demolition Land Building 2 Building 3 $703,160 272,020 2,476,000 254,600 Land Land Improvements 1 Improvements 2

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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