The following cases are independent. Case A Starling Ltd. bought a building for $1,330,000. Before using the building, the following expenditures were made: Repair and renovation of building Construction of new paved driveway Upgraded landscaping Wiring Deposits with utilities for connections Sign for front and back of building, attached to roof Installation of fence around property Case B Lark Company purchased a $33.400 tract of land for a new manufacturing facility. Lark demolished an old building on the property and sold the materials it salvaged from the demolition. Lark incurred additional costs and realized salvage proceeds as follows: Demolition of old building Routine maintenance (mowing) done on purchase Proceeds from sale of salvaged materials Legal fees Title guarantee insurance $ 33,150 2,775 $129,000 35,800 4,750 16,700 2,775 17,450 14,750 13,450 10,950 6,425

The following cases are independent. Case A Starling Ltd. bought a building for $1,330,000. Before using the building, the following expenditures were made: Repair and renovation of building Construction of new paved driveway Upgraded landscaping Wiring Deposits with utilities for connections Sign for front and back of building, attached to roof Installation of fence around property Case B Lark Company purchased a $33.400 tract of land for a new manufacturing facility. Lark demolished an old building on the property and sold the materials it salvaged from the demolition. Lark incurred additional costs and realized salvage proceeds as follows: Demolition of old building Routine maintenance (mowing) done on purchase Proceeds from sale of salvaged materials Legal fees Title guarantee insurance $ 33,150 2,775 $129,000 35,800 4,750 16,700 2,775 17,450 14,750 13,450 10,950 6,425

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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