The following costs were incurred by Imports Auto Parts in connection with the construction of a retail store building: Cost of land, including $18,200 of legal costs Cost to demolish old building Costs of grading land for building site Costs related to building construction Legal costs relating to building permits Costs of paving parking lot $320,000 18,350 10,400 870,000 16,775 92,000 Required: 1 & 2. What are the capitalized costs of the land and the new building? S Purchase price of land Demolition cost of old building Cost to level building site Cost to construct building Legal costs related to building Costs of paving parking lot Total capitalized cost Land Retail Building

The following costs were incurred by Imports Auto Parts in connection with the construction of a retail store building: Cost of land, including $18,200 of legal costs Cost to demolish old building Costs of grading land for building site Costs related to building construction Legal costs relating to building permits Costs of paving parking lot $320,000 18,350 10,400 870,000 16,775 92,000 Required: 1 & 2. What are the capitalized costs of the land and the new building? S Purchase price of land Demolition cost of old building Cost to level building site Cost to construct building Legal costs related to building Costs of paving parking lot Total capitalized cost Land Retail Building

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 3PA: During the current year, Alanna Co. had the following transactions pertaining to its new office...

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During the current year, Alanna Co. had the following transactions pertaining to its new office building. A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. B. What should Alanna Co. record on its books for the building?
A company made the following expenditures in connection with the construction of a new building: Architect's fees 100,000 14,400,000 Cash paid for land and unusable building on the land Construction costs of new building 48,000,000 Construction survey 50,000 Excavation for basement construction 1,200,000 76,800 Freight on machinery purchased Installation of machinery Legal fees for title search Machinery purchased for operations Removal of old building Salvage from sale of old building materials 120,000 144,000 4,800,000 864,000 (192,000) Special base for the machinery 10,000 Answer the following: 1. How much should be recorded as cost of Land, Building and Machinery? 2. Assuming that the Building will be depreciated over 10 years with no salvage value, how much should be the annual depreciation expense? 3. Assume that the company will use unit-of production method for the depreciation of machinery. The estimated total production is 1000.000 units with the following production for the…
Oriole Enterprises incurred several costs related to the acquisition of plant assets. Purchase price of land and dilapidated building Real estate broker's commission Demolition costs of dilapidated building Architect's fees and building permits Payments to contract for building construction Purchase of new furniture and equipment Actual interest costs during building construction Actual interest cost after completion of building construction Costs of walks, driveways, and parking lot $228800 O $243760 $248160 $311520 O $263120 14960 19360 21120 765600 65120 118800 105600 48400 At what amount should the land be recorded in Oriole's accounting records?
Current Attempt in Progress Indicate whether each of the following expenditures should be classified as land, land improvements, buildings, equipment, or none of these. 1. Computer installation cost 2. 3. 4. 5. 6. 7. 8. 9. 10. Driveway cost Architect's fee Surveying costs Grading costs Cost of lighting for the parking lot Insurance while in transit and freight on a computer purchased Material and labor costs incurred to construct a factory Cost of tearing down a warehouse on land just purchased Utility cost during the first year 4
What is the cost of the land, based upon the following data? Land purchase price $184,449 Broker's commission 18,832 Payment for the demolition and removal of existing building 5,505 Cash received from the sale of materials salvaged from the demolished building 1,490 $fill in the blank 1
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Martini Company incurred the following costs in purchasing a land as a factory site:Purchase price 2,400,000Cost of tearing down old building 240,000Legal fee for title investigation 15,000Title insurance 10,000 Architect fee 125,000Liability insurance during construction 25,000Excavation cost 40,000Payment to building contractor 8,800,000Special assessment by city for public improvement 30,000Interest cost during construction 300,000 What is the cost of the building?
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7. During the current year, Alanna Co. had the following transactions pertaining to its new office building. Purchase price of land Legal fees for contracts to purchase land Architect fees $120,000 4,000 16,000 10,000 6,000 700,000 Demolition of the old building on site Sale of scrap from old building Construction cost of new building A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. B. What should Alanna Co. record on its books for the building?
The cost of an item of property, plant and equipment includes all of the following: I. Purchase Price II. Directly attributable costs such as freight and taxes paid. III. Costs of dismantling and removing the item at the end of its useful life. IV. Costs of restoring the site on which the item is located at the end of its useful life. options: A) I and II only; B) I, II, III and IV C) I, II, and III only D) I and III only;