The purchase price Re cost of filling the land was RO 15,000. Cost of demolishing an old building on the land to make land suitable for ction of new factory RO 10,00O. Proceeds from salvage of the materials from the old building totalled RO 4,000. Full payment to ction contractor RO 300,000. Real estate taxes on land paid at time of purchase RO 4,500. Architect's fees on factory design plan D. Cost of the fences, parking lots and driveways RO 30,000. What is the total cost of the factory building? RO 314,000 None of the options are correct RO 310,500 RO 308 50

The purchase price Re cost of filling the land was RO 15,000. Cost of demolishing an old building on the land to make land suitable for ction of new factory RO 10,00O. Proceeds from salvage of the materials from the old building totalled RO 4,000. Full payment to ction contractor RO 300,000. Real estate taxes on land paid at time of purchase RO 4,500. Architect's fees on factory design plan D. Cost of the fences, parking lots and driveways RO 30,000. What is the total cost of the factory building? RO 314,000 None of the options are correct RO 310,500 RO 308 50

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4PA: During the current year, Arkells Inc. made the following expenditures relating to plant machinery. ...

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During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated seven machines for $250,000 to improve efficiency in production of their remaining useful life of eight years Low-cost repairs throughout the year totaled $79,000 Replaced a broken gear on a machine for $6,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated five machines for $100,000 to improve efficiency in production of their remaining useful life of five years Low-cost repairs throughout the year totaled $70,000 Replaced a broken gear on a machine for $10,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
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