Wellsley Corporation purchased an old building and the land on which it is located for $70,000. The old building was demolished at a cost of $20,500. The new building that was built on the site cost $250,000. Wellsley also incurred the following costs: closing fees including commissions of $4,500, and title insurance costing $3,000. What is the correct amount to capitalize for the Land? a) $70,000 Ob) $90,500 Oc) $320,000 d) $98,000 e) $418,000

Wellsley Corporation purchased an old building and the land on which it is located for $70,000. The old building was demolished at a cost of $20,500. The new building that was built on the site cost $250,000. Wellsley also incurred the following costs: closing fees including commissions of $4,500, and title insurance costing $3,000. What is the correct amount to capitalize for the Land? a) $70,000 Ob) $90,500 Oc) $320,000 d) $98,000 e) $418,000

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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