Rossy Investigations purchased land, paying $97,000 cash plus a $250,000 note payable. In Addition, Rossy Investigations paid delinquent property tax of $2,000, title insurance costing $1,000, and $5,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $440,000. It also paid $56,000 for a fence around the property, $18,000 for a sign near the entrance, and $8,000 for special lighting on the grounds. Determine the cost of the land, land improvements, and building. Land Land Improvements Building Account Purchase price Note payable Property tax Title insurance Remove building Construct building Fence Sign Lighting Totals Submit All Parts

Rossy Investigations purchased land, paying $97,000 cash plus a $250,000 note payable. In Addition, Rossy Investigations paid delinquent property tax of $2,000, title insurance costing $1,000, and $5,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $440,000. It also paid $56,000 for a fence around the property, $18,000 for a sign near the entrance, and $8,000 for special lighting on the grounds. Determine the cost of the land, land improvements, and building. Land Land Improvements Building Account Purchase price Note payable Property tax Title insurance Remove building Construct building Fence Sign Lighting Totals Submit All Parts

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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Peace Co. purchased land as a factory site for P300,000. Peace paid P30,000 to tear down two building on the land. Salvage was sold for P2,700. Legal fees of P1,740 were paid for title investigation and making the purchase. Architect's fees were P15,600. Land Title insurance cost P1,200. Liability insurance during construction cost, P1300. Excavation cost P5,220. The contractor was paid P1,100,000. An assessment made by the city for pavement was P3,200. Interest costs during construction were P85,000. The cost of the land is The cost of the building is a. 1,201,900b. 1,207,120c. 1,234,420d. none of these
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On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $32,000 in cash and giving a short-term note for $302,000. Legal fees paid were $1,580, delinquent taxes assumed were $15,200, and fees paid to remove an old building from the land were $19,100. Materials salvaged from the demolition of the building were sold for $5,000. A contractor was paid $1,015,400 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.fill in the blank 1 of 1$
On March 1, 2021, Sage Hill Company acquired real estate on which it planned to construct a small office building. The company paid $100,000 in cash. An old warehouse on the property was razed at a cost of $7,900; the salvaged materials were sold for $1,800. Additional expenditures before construction began included $1,400 attorney's fee for work concerning the land purchase, $4,100 real estate broker's fee, $8,200 architect's fee, and $13,600 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land. Cost of the land $
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Murphy Self Storage purchased land, paying $160,000 cash as a down payment and signing a $185,000 note payable for the balance. Murphy also had to pay delinquent property tax of $2,000, title insurance costing $6,000, and $11,000 to level the land and remove an unwanted building. The company paid $58,000 to add soil for the foundation and then constructed an office building at a cost of $700,000. It also paid $52,000 for a fence around the property, $11,000 for the company sign near the property entrance, and $3,000 for lighting of the grounds. Read the requirement. The cost of the land is The cost of the land improvements is The cost of the building is Requirement 1. What is the capitalized cost of each of Murphy's land, land improvements, and building? Print Done - X
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