On May 4, Year 1, Steger Company purchased a tract of land as a factory site for $1,630,000. An existing building on the property was demolished, and construction was begun on a new factory building in July Year 1 and completed December 15, Year 1. Cost data are shown below.- Construction cost of new building: $7,590,000- Cost of demolishing old building: $139,000- Proceeds from sale of lumber from old building: $22,000- Architect’s fees relating to construction of new building: $229,000- Title insurance and attorney’s fee for purchase of land: $83,300**Required:**Compute the capitalized cost of (1) the land and (2) the new factory building.- **Land**- **2. New factory building**

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Description: On May 4, Year 1, Steger Company purchased a tract of land as a factory site for $1,630,000. An existing building on the property was demolished, and construction was begun on a new factory building in July Year 1 and completed December 15, Year 1.

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On May 4, Year 1, Steger Company purchased a tract of land as a factory site for $1,630,000. An existing building on the property was demolished, and construction was begun on a new factory building in July Year 1 and completed December 15, Year 1. Cost data are shown below. Construction cost of new building Cost of demolishing old building Proceeds from sale of lumber from old building Architect's fees relating to construction of new building Title insurance and attorney's fee for purchase of land Required: Compute the capitalized cost of (1) the land and (2) the new factory building. Land 2. New factory building $7,590,000 139,000 22,900 229,000 83,300

On May 4, Year 1, Steger Company purchased a tract of land as a factory site for $1,630,000. An existing building on the property was demolished, and construction was begun on a new factory building in July Year 1 and completed December 15, Year 1. Cost data are shown below. Construction cost of new building Cost of demolishing old building Proceeds from sale of lumber from old building Architect's fees relating to construction of new building Title insurance and attorney's fee for purchase of land Required: Compute the capitalized cost of (1) the land and (2) the new factory building. Land 2. New factory building $7,590,000 139,000 22,900 229,000 83,300

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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