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The Venus Company hired an architect to design plans and a construction firm to build a new office building on a parcel of land it owns. The following data relates to the building: Price paid to the construction firm $320,000 Architect fees 18,000 1,200 Permit fees Property taxes during the construction period 800 Insurance premium for the first year of operations 3,000 Property taxes during the first year of operations 6,000 The total acquisition cost of the new building is: a. $349,000. b. $340,000. c. $338,000. d. $320,000.

The Venus Company hired an architect to design plans and a construction firm to build a new office building on a parcel of land it owns. The following data relates to the building: Price paid to the construction firm $320,000 Architect fees 18,000 1,200 Permit fees Property taxes during the construction period 800 Insurance premium for the first year of operations 3,000 Property taxes during the first year of operations 6,000 The total acquisition cost of the new building is: a. $349,000. b. $340,000. c. $338,000. d. $320,000.

FINANCIAL ACCOUNTING
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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The Venus Company hired an architect to design plans and a construction firm to build a new office building on a parcel of land it owns. The following data relates to the building: Price paid to the construction firm $320,000 Architect fees 18,000 1,200 Permit fees Property taxes during the construction period 800 Insurance premium for the first year of operations 3,000 Property taxes during the first year of operations 6,000 The total acquisition cost of the new building is: a. $349,000. b. $340,000. c. $338,000. d. $320,000.
Transcribed Image Text:The Venus Company hired an architect to design plans and a construction firm to build a new office building on a parcel of land it owns. The following data relates to the building: Price paid to the construction firm $320,000 Architect fees 18,000 1,200 Permit fees Property taxes during the construction period 800 Insurance premium for the first year of operations 3,000 Property taxes during the first year of operations 6,000 The total acquisition cost of the new building is: a. $349,000. b. $340,000. c. $338,000. d. $320,000.
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