The Venus Company hired an architect to design plans and a construction firm to build a newoffice building on a parcel of land it owns. The following data relates to the building:Price paid to the construction firm $320,000Architect fees18,0001,200Permit feesProperty taxes during the construction period 800 Insurance premium for the first year ofoperations 3,000 Property taxes during the first year of operations 6,000 The total acquisition costof the new building is:a. $349,000.b. $340,000.c. $338,000.d. $320,000.

Step 1: List the relevant costsPrice paid to the construction firm: This is the main cost for…

Answered: The Venus Company hired an architect to…

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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On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for $825,000. An existing building on the site was demolished and the new factory was completed on October 11, Year 1. Additional cost data are shown below: Construction cost of new building $ 1,000,000 Real estate and attorney fees 18,200 Architect fees 84,000 Cost to demolish old building 77,100 Salvage recovery from old building (13,000 ) Which of the following are the capitalized costs of the land and the new building, respectively? Multiple Choice A $843,200 and $1,148,100 B $920,300 and $1,071,000 C $825,000 and $1,166,300 D $907,300 and $1,084,000
Determining cost of land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $41,000 in cash and giving a short-term note for $276,000. Legal fees paid were $1,330, delinquent taxes assumed were $12,400, and fees paid to remove an old building from the land were $17,000. Materials salvaged from the demolition of the building were sold for $4,800. A contractor was paid $963,700 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.
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Determining cost of land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $28,000 in cash and giving a short-term note for $258,000. Legal fees paid were $1,565, delinquent taxes assumed were $10,000, and fees paid to remove an old building from the land were $20,000. Materials salvaged from the demolition of the building were sold for $4,300. A contractor was paid $869,400 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.fill in the blank 1 of 1$
Determining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $27,000 in cash and giving a short-term note for $256,000. Legal fees paid were $2,200, delinquent taxes assumed were $9,800, and fees paid to remove an old building from the land were $20,700. Materials salvaged from the demolition of the building were sold for $4,200. A contractor was paid $860,300 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.
The Flintstone Construction Company delivers dirt and stone from local quarries to its construction sites. A new truck that was purchased for a cost of $122,000 at the beginning of the year was expected to deliver 122,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction site: Construction Sites: Tons Delivered: Multiple Choice $12,767 $1,400 A 1,400 How much truck depreciation should be allocated to Site A? (Do not round intermediate calculations. Round your answer to the nearest dollar.) $1,220 B 2,900 None of the answers are correct. с 3,400 D 900
Which of the following are the capitalized coats of the land and the new building, respectively?
The Madison Sign Company purchased land as a factory site for $75,000. Prior to construction of the new building, the land had to be cleared of trees and brushConstruction costs incurred during the first year are listed below
Widget Industries erected a facility costing $1.56 million on land bought for $1 million. The firm used straight-line depreciation over a 39-year period; it installed $2.5 million worth of plant and office equipment (all classified as MACRS 7-year property). Gross income from the first year of operations (excluding capital expenditures) was $8.2 million, and $5.8 million was spent on labor and materials. How much did Widget pay in federal income taxes for the first year of operation? (a) $680,935 (b) $1,002,750 (c) $1,321,815 (d) $2,788,000
Cala Manufacturing purchases land for $459,000 as part of its plans to build a new plant. The company pays $39,800 to tear down an old building on the lot and $58,835 to fill and level the lot. It also pays construction costs of $1,498,000 for the new building and $94,558 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash. View transaction list Journal entry worksheet A Record the total costs of the plant assets. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View genera
Please show calculation of cost of the building thanku
DEF Co. purchased a lot for ₱8,000,000. Immediately after the purchase, DEF Co. started the construction of a new building on the lot. Additional information follows: Legal cost of conveying title to land ₱ 40,000 Special assessment 20,000 Survey costs 60,000 Materials, labor, and overhead costs 22,000,000 Cash discounts on materials purchased not taken 120,000 Clerical and other costs related to construction 56,000 Excavation costs 400,000 Architectural fees and building permit 240,000 Supervision by management on construction 48,000 Insurance premiums paid for workers 520,000 Payment for claim for injuries not covered by insurance 180,000 Savings on construction 800,000 Cost of changes to plans and specifications due to inefficiencies 560,000 Paving of streets and sidewalks (not included in blueprint) 40,000 Income earned on a vacant space rented as parking lot during construction 36,000 1. How much are the capitalized costs of the land, land improvement and the…

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