A tract of land with a building was acquired for $6,000,000. The closing statement indicated that the land value was $1,000,000. Shortly after acquisition, the building was demolished at a cost of $200,000. A new building was constructed for $3,000,000 plus the following costs: Excavation fees - $120,000 Architectural design fees - $160,000 Building permit fees - $40,000 Payment for insurance premium during the construction period - $75,000. What is the cost of the new building?

Q: On January 1, Mitzu Co. pays a lump-sum amount of $2,750,000 for land, Building 1, Building 2, and…

A: Given that: Lump sum payment for Land, Buildings and for Land improvements = $27,50,000

Q: At the beginning of the current year, Bert Company purchased a mineral mine for P26,400,000 with…

A: GIVEN   At the beginning of the current year, Bert Company purchased a mineral mine for P26,400,000…

Q: At the beginning of current year, Exodus Company purchased a machine for 8,000,000 and received a…

A: Grants means the amount received without any sale of product or providing any services. When grants…

Q: Revson Corporation purchased land adjacent to its plant to improve access for trucks making…

A: We have the following information: Purchase price: $55,000 Broker’s fees: $6,000 Title search and…

Q: Bridge City Consulting bought a building and the land on which it is located for $195,000 cash. The…

A: The asset is valued at the total cost incurred to bring the asset for being ready to use.

Q: A company purchased land for $80,000 cash. Real estate brokers' commission was $5,000 and $10,000…

A: As per IAS 16, The cost of property, plant, and equipment includes the purchase price, any cost to…

Q: A building was purchased on August 1 for $490,000. It has a salvage value of $38,000 and a useful…

A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…

Q: Taylor Computer Services purchased a tract of land and contracted with a builder to build an office…

A: Cost of land: The cost of land comprises the purchase price (cash plus any notes due), brokerage…

Q: Glenwood Industrial Gear, Inc. incurred the following costs associated with the purchase of a piece…

A: Capitalization cost of land includes demolition of an old building, Land preparation and leveling,…

Q: Panay Company purchased land as a factory site for P2,400,000. The entity paid P240,000 to tear down…

A: The land is purchased at a fixed sum, and the costs of preparing the site for construction are…

Q: Previn Brothers Inc. purchased a piece of land at a cost of $ 27,000. Closing costs were $ 1,400. An…

A: Information Provided: Cost of piece of land = $27,000 Closing costs = $1400 Removal costs = $10,200

Q: On March 1, 2018, Beldon Corporation purchased land as a factory site for $60,000. An old building…

A: Given information is: On March 1, 2018, Beldon Corporation purchased land as a factory site for…

Q: At the beginning of the current year, Bert Company purchased a mineral mine for P26,400,000 with…

A: Lets understand the basics. Depletion needs to calculate when there is extraction of mineral…

Q: Four Corners Delivery Company acquired an adjacent lot to construct a new warehouse, paying $41,000…

A: Cost of land = Cash paid to acquire land + Short-term note + legal fees + delinquent taxes + fees…

Q: Blossom Company purchased real estate for $1,165,000, which included $6,200 in legal fees. It paid…

A: The procedure of entering business transactions for the first time in the books of accounts is known…

Q: On the first day of the fiscal year, Alpha Corporation purchased a machine with a cost of s65,000.…

A: Straight line method In straight line method, value of a fixed asset is decreased gradually over its…

Q: Carlos Company bought a land, on which there was an old building, for $900,000. They immediately had…

A: The cost that are incurred to acquire an asset and then any expense that are incurred to bring asset…

Q: Fubu Corporation purchased a 5-acre tract of land in New Albany, Ohio for a building site for…

A: Capitalized cost of the land = Purchase price + Demolition costs of old building - Scrap sold +…

Q: What value should be assigned to the tract of land? $Answer  What value should be assigned to the…

A: Cost assignment refers to the process which is used by the company to allocate the cost of product…

Q: Biliran Company incurred the following costs at the beginning of the current year: Cost of land…

A: Non-current assets: Non-current assets are the assets purchased not the purpose of resale. It's…

Q: On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for…

A: Land and Building are fixed assets however the treatment of both with regard to depreciation is…

Q: COMPASSION Company incurred the following costs at the beginning of the current year: Cost of land…

A: Tangible assets can be defined as the asset that has a monetary value and has a physical form. These…

Q: At the beginning of current year, Darwin Company purchased a plating machine for 5,400,000. The…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: COMPASSION Company incurred the following costs at the beginning of the current year: Cost of land…

A: According to the policy, we are supposed to solve one question at a time. Kindly repost the further…

Q: On April 1, Nadia Corporation purchased for £171,000 a tract of land on which was located a…

A: Amount recorded for the Land = Purchase price of land x Current assessed valuation of Land / Total…

Q: Leni Company incurred the following costs during the current year: 10,000 10,000 Option fee for land…

A:

Q: Fullerton Waste Management purchased land and a warehouse for $600,000. In addition to the purchase…

A:

Q: Laramie Company has acquired a property that included both land and a building for $600,000. The…

A: Given: Cost of land and building = $600,000 Market value of land = $370,000 Market value of building…

Q: Bob Co purchased a building for $50,000 and began depreciating assuming a salvage value of $5,000…

A: Depreciation Expense = Cost of asset - Salvage valueuseful life When salvage value is $ 5,000 and…

Q: Laramie Corporation has acquired a property that included both land and a building for​ $590,000.…

A: Market value of the total assets  = (Market value of land + market value of building) = ( $350000 +…

Q: D. Theresa Company purchased for P4,500,000 a tract of land as a factory site. An old building was…

A: The actual costs of purchasing, installation, and commissioning assets are referred to as the cost…

Q: A nonresidential building was put into service for $200,000 in late February. The building was sold…

A: Depreciation It is important to find out the depreciation cost which are incurred to the assets of…

Q: On January 1, Mitzu Co. pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2, and…

A: Solution: (1) Total cost allocation Estimated Value Percentage of the assessed value X Total…

Q: Northwest Delivery Company acquired an adjacent lot to construct a new warehouse, paying $75,000 and…

A: Amount paid for the construction of new warehouse will not be part of the cost of the land.

Q: The General Service Contractor Company paid$400,000 for a house and lot. The value of the landwas…

A: Depreciation is reduction in value of asset due to usage and time.

Q: On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $44,000 in…

A: Land forms a part of assets of the entity and represent the resources that assist the business in…

Q: Facetious Company incurred the following expenditures related to the construction of a new home…

A: An expenditure is a sum of money spent on something. The term is more than just a creative way of…

Q: Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $490,000. In addition to the purchase…

A:

Q: Fastball Delivery Company acquired an adjacent lot to construct a new warehouse, paying $38,000 and…

A: Total cost of the land = Cash paid + Short term note + Legal fees + Delinquent taxes + Removal cost…

Q: Blackpink Company purchased land with a building on it, for P2,280,000. It was reliably determined…

A: Here while analyzing the data it is understand that there is the purchase of land and building and…

Q: Unilever acquires land for $86,000 cash. Additional costs are as follows: removal of shed $300,…

A: As per IAS 16 property plant and equipment. Cost of equipment includes all costs that are incurred…

Q: On the first day of the fiscal year, Alpha Corporation purchased a machine with a cost of $65,000.…

A: Depreciation It  is a systematic allocation of  the cost of an asset which  is used in a business.…

Q: Accounting for Property, Plant and Equipment During the first few days of the year, Coast Company…

A: Cost of acquisition will include all those expenditures incurred to bring the asset to its current…

Q: . What amount should be reported as cost of land? 2. What amount should be reported as cost of…

A: A. Value of the Land: Particulars Amount Purchase price of the land $60,000 Add: legal fees…

Q: On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for…

A: The capitalization cost of land includes the cost of demolition of the building, real estate, and…

Q: At the beginning of current year, Nilli company purchased a coal mine for P30,000,000. Removable…

A: All natural resources that are being acquired by the business loses their value over the period of…

Q: DEF Co. purchased a lot for ₱8,000,000. Immediately after the purchase, DEF Co. started the…

A: The capitalized cost of land will be equal to the initial cost of land i.e. the acquisition price…

Q: The Italian Bread Company purchased land as a factory site for $63,000. An old building on the…

A: Solution:- Calculation of the amounts that the company should record in the Land and the Building…