Zenith Corporation 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 relate to the building: • Price paid to the construction firm: $450,000 • Architect fees: $25,000 • Permit and legal fees: $12,500 • Site preparation costs: $18,000 • Installation of plumbing and electrical systems: $42,000 Required: Determine the total capitalized cost of the office building.

Zenith Corporation 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 relate to the building: • Price paid to the construction firm: $450,000 • Architect fees: $25,000 • Permit and legal fees: $12,500 • Site preparation costs: $18,000 • Installation of plumbing and electrical systems: $42,000 Required: Determine the total capitalized cost of the office building.

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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