A company purchased land for $91300 cash. Real estate brokers' commission was $6000 and $7000 was spent for demolishing an old building on the land before construction of a new building could start. Under the historical cost principle, the cost of land would be recorded at?

A company purchased land for $91300 cash. Real estate brokers' commission was $6000 and $7000 was spent for demolishing an old building on the land before construction of a new building could start. Under the historical cost principle, the cost of land would be recorded at?

Name: A company purchased land for $91300 cash. Real estate brokers' commiss
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Description: A company purchased land for $91300 cash. Real estate brokers' commission was $6000 and $7000 was spent for demolishing an old building on the land before construction of a new building could start. Under the historical cost principle, the cost of la

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 38P

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Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is worth 100,000 and the building is worth 300,000. What cost should Utica assign to the land and to the building, respectively?
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