A company incurred the following costs: Purchase price of land $290,000 Survey fees 7,000 Payment for demolition of old building on land 20,000 Back property taxes on land 3,000 Paving costs for parking lot 40,000 Fence around perimeter of land 15,000 Lights in parking lot 90,000 Signs for new business 5,000 What is the cost of the land? OA. $317,000 OB. $320,000 C. $290,000 D. $360,000

A company incurred the following costs: Purchase price of land $290,000 Survey fees 7,000 Payment for demolition of old building on land 20,000 Back property taxes on land 3,000 Paving costs for parking lot 40,000 Fence around perimeter of land 15,000 Lights in parking lot 90,000 Signs for new business 5,000 What is the cost of the land? OA. $317,000 OB. $320,000 C. $290,000 D. $360,000

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter2: Asset And Liability Valuation And Income Recognition

Section: Chapter Questions

Problem 11PC: Costs to Be Included in Historical Cost Valuation. At a cost of 200,000, Assume In-N-Out Burger...

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Costs to Be Included in Historical Cost Valuation. At a cost of 200,000, Assume In-N-Out Burger acquired a tract of land for a restaurant site. It paid attorneys 7,500 to conduct a title search and to prepare the required legal documents for the purchase. State real estate transfer taxes totaled 2,500. Building permits totaled 1,200. Compute the acquisition cost of the land.
A company purchased property for a building site. The costs associated with the property were: Purchase price $175,000 Real estate commissions 15,000 Legal fees. Expenses of clearing the land Expenses to remove old building 800 2,000 1,000 What portion of these costs should be allocated to the cost of the land and what portion should be alloca the cost of the new building? $175,800 to Land; $18,800 to Building O $190,000 to Land; $3,800 to Building $190,800 to Land; $1,000 to Building O $192,800 to Land; $0 to Building O $193,800 to Land; $0 to Building
The Open Grill incurred the following costs in acquiring a new piece of land: Purchase price $80,000 Commissions 4,800 Liability insurance for the first year 1,200 20,000 Cost of removing existing building Sale of salvaged materials (4,000) Total costs $102,000 What is the total capitalized cost of the land? Multiple Choice O O $102,000. $80,000. $100,800. $106,000.
Biliran Company incurred the following costs at the beginning of the current year: Cost of land 1,000,000 Cost of building Remodelling and repairs prior to occupancy 4,000,000 500,000 Escrow fee 100,000 Clearing, levelling and landfill Property tax for period prior to acquisition Real estate commission 250,000 150,000 300,000 What is the cost of building? a. 4,500,000 b. 4,740,000 C. 4,800,000 d. 4,940,000
Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price $ 191,000 Real estate commissions 16,600 Legal fees 2,400 Expenses of clearing the land Expenses to remove old building 3,600 2,600 What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?
Facetious Company incurred the following expenditures related to the construction of a new home office: Purchase price of land and an old apartment building 2,000,000 Fair value of land 1,800,000 Legal fees, including fee for title search 10,000 Payment of land mortgage and related interest due at time of sale 50,000 Payment of delinquent property taxes assumed 20,000 Cost of razing the apartment building 30,000 Grading and drainage on land site 15,000 Architect fee on new building 200,000 Payment to building contractor 8,000,000 Interest cost on specific borrowing during construction 300,000 Payment of medical bills of employees accidentally injured while inspecting building construction 10,000 Cost of paving driveway and parking lot 40,000 Cost of trees, shrubs and other landscaping 55,000 Cost of installing lights in parking lot 5,000 Premium for insurance on building during construction 25,000 Cost of open house party to celebrate opening of building 60,000 1. What is the cost…
Merchant Company purchased land for a building site. The costs associated with the property were: Purchase price $ 188,000 Real estate commissions 16,300 Legal fees 2,100 Expenses of clearing the land 3,300 What is the total recorded cost of the land? Mutiple Choice $192,100 $206,400 $188,000 $209,700 $204,300
During the current year, Alanna Co. had the following transactions pertaining to its new office building. Purchase price of land $120,000 Legal fees for contracts to purchase land 5,000 Architech fees 15,000 Demolition of the old building on site 12,000 Sale of scrap from old building 7,000 Construction cost of new building 680,000 A. What should Alanna Co. record on its books for the land? K) The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. $1 B. What should Alanna Co. record on its books for the building?
COMPASSION Company incurred the following costs at the beginning of the current year: Cost of land 1,000,000 Cost of building 4,000,000 Remodeling and repairs prior to occupancy 500,000 Escrow fee 100,000 Clearing, leveling and landfill 250,000 Property tax for period after the acquisition 150,000 Real estate commission 300,000 Required: Compute the cost of building Compute the cost of land
Land is purchased for $300,000 Back taxes were paid by the purchaser were $8,100 total costs to demolish an existing building were $15,000 and the costs to clear the land was $18,000 the cost of paving the parking lot was $7,900 the cost of land is ____ and the cost of land improvements is ______ A. $340,000 ; $8,1000 B. $323,100 ; $25,900 C. $341,000 ; $7,900 D. $349,000 ; $0 thanks for help apapreciated it aijrharhjo
COMPASSION Company incurred the following costs at the beginning of the current year: Cost of land 1,000,000 Cost of building 4,000,000 Remodeling and repairs prior to occupancy 500,000 Escrow fee 100,000 Clearing, leveling and landfill 250,000 Property tax for period after the acquisition 150,000 Real estate commission 300,000 1. compute the cost of building 2. compute the cost of land
Determine the Cost of Land Village Delivery Company purchased a lot to construct a new warehouse for $243,000, paying $28,000 in cash and giving a short-term note for the remainder. Legal fees paid in connection with the purchase were $2,075, delinquent taxes assumed were $12,300, and fees paid to remove an old building from the land were $17,400. Materials salvaged from the demolition of the building were sold for $4,100. A contractor was paid $823,800 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet. X