On March 31, 2023, Capital Investment Advisers paid $4,500,000 for land with two buildings on it. The plan was to demolish Building 1 and build a new store (Building 3) in its place. Building 2 was to be used as a company office and was appraised at a value of $1,119,840. A lighted parking lot near Building 2 had improvements (Land Improvements 1) valued at $653,240. Without considering the buildings or improvements, the tract of land was estimated to have a value of $2,892,920. Capital incurred the following additional costs: Cost to demolish Building 1 Cost of additional landscaping Cost to construct new building (Building 3) Cost of new land improvements near Building 2 (Land Improvements 2) Required: 1. Allocate the costs incurred by Capital to the appropriate columns and total each column. $ 682,160 268,520 3,232,400 253,200

On March 31, 2023, Capital Investment Advisers paid $4,500,000 for land with two buildings on it. The plan was to demolish Building 1 and build a new store (Building 3) in its place. Building 2 was to be used as a company office and was appraised at a value of $1,119,840. A lighted parking lot near Building 2 had improvements (Land Improvements 1) valued at $653,240. Without considering the buildings or improvements, the tract of land was estimated to have a value of $2,892,920. Capital incurred the following additional costs: Cost to demolish Building 1 Cost of additional landscaping Cost to construct new building (Building 3) Cost of new land improvements near Building 2 (Land Improvements 2) Required: 1. Allocate the costs incurred by Capital to the appropriate columns and total each column. $ 682,160 268,520 3,232,400 253,200

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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