Westlake Corporation acquires land for $150,000 cash. Additional costs include: Demolition of old building = $2,500 Land clearing and levelling = $3,200 • Salvage value from old building materials = $800 • Broker commission = $2,400 . • Installation of fences = $12,000 (not included in land cost) Legal and closing fees = $1,000 What is the total acquisition cost of the land?

Westlake Corporation acquires land for $150,000 cash. Additional costs include: Demolition of old building = $2,500 Land clearing and levelling = $3,200 • Salvage value from old building materials = $800 • Broker commission = $2,400 . • Installation of fences = $12,000 (not included in land cost) Legal and closing fees = $1,000 What is the total acquisition cost of the land?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...

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Fresh Veggies, Incorporated (FVI), purchases land and a warehouse for $490,000. In addition to the purchase price, FVI makes the following expenditures related to the acquisition: broker's commission, $29,000; title insurance, $1,900; and miscellaneous closing costs, $6,000. The warehouse is immediately demolished at a cost of $29,000 in anticipation of building a new warehouse. Determine the cost of the land and record the purchase (assuming cash was paid for all expenditures). (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of the land. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general Journal
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Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $490,000. In addition to the purchase price, FVI makes the following expenditures related to the acquisition: broker’s commission, $29,000; title insurance, $1,900; and miscellaneous closing costs, $6,000. The warehouse is immediately demolished at a cost of $29,000 in anticipation of building a new warehouse. Determine the amount FVI should record as the cost of the land.