Determining Cost of LandOn-Time Delivery Company acquired an adjacent lot to construct a new warehouse,paying $90,000 and giving a short-term note for $50,000. Legal fees paid were$1,750, delinquent taxes assumed were $25,000, and fees paid to remove an oldbuilding from the land were $9,000. Materials salvaged from the demolition of thebuilding were sold for $1,000. A contractor was paid $415,000 to construct a newwarehouse.Determine the cost of the land to be reported on the balance sheet.

Initial cost=Cash Payment+Short term note=$90,000+$50,000=$140,000

Answered: On-Time Delivery Company acquired an…

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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