Fubu Corporation purchased a 5-acre tract of land in New Albany, Ohio for a building site for $500,000. The company demolished the old building at a cost of $18,000, but was able to sell scrap from the building for $1,000. The cost of title transfer was $800 and attorney fees for reviewing the contract was $1500. Property taxes paid were $4,000, of which $450 covered the period after the purchase date. The capitalized cost of the land is:
Fubu Corporation purchased a 5-acre tract of land in New Albany, Ohio for a building site for $500,000. The company demolished the old building at a cost of $18,000, but was able to sell scrap from the building for $1,000. The cost of title transfer was $800 and attorney fees for reviewing the contract was $1500. Property taxes paid were $4,000, of which $450 covered the period after the purchase date. The capitalized cost of the land is:
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...
Related questions
Question
Fubu Corporation purchased a 5-acre tract of land in New Albany, Ohio for a building site for $500,000. The company demolished the old building at a cost of $18,000, but was able to sell scrap from the building for $1,000. The cost of title transfer was $800 and attorney fees for reviewing the contract was $1500. Property taxes paid were $4,000, of which $450 covered the period after the purchase date. The capitalized cost of the land is:
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Business Its Legal Ethical & Global Environment
Accounting
ISBN:
9781305224414
Author:
JENNINGS
Publisher:
Cengage