Belpre Inc. constructed a new office building. Building material costs for the new building were $3,000,000; total labor costs were $2,500,000; total company overhead was $9,000,000 (25% of which could be assigned to the new project); and interest paid on a new construction loan for the project was $1,250,000. Calculate the total cost of the self-constructed building.
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Belpre Inc. constructed a new office building. Building material costs for the new building were $3,000,000; total labor costs were $2,500,000; total company overhead was $9,000,000 (25% of which could be assigned to the new project); and interest paid on a new construction loan for the project was $1,250,000.
Calculate the total cost of the self-constructed building.
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- Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?Foster has built a new factory incurring the following costs: Land GH₵1,200,000 Materials GH₵2,400,000 Labour GH₵3,000,000 Architect's fees GH₵25,000 Surveyor's fees GH₵15,000 Site overheads GH₵300,000 Apportioned administrative overheads GH₵150,000 Testing of fire alarms GH₵10,000 Business rates for first year GH₵12, 000. What will be the total amount capitalised in respect of the factory?Moby Co. purchased land costing $2,550,000 as a future factory site. Moby paid $240,000 to tear down two buildings on the land. Some Amish folks came along and paid them from the scrap lumber. They paid $2,450 cash for it. Moby paid the lawyer $4,555 in fees for the title investigation and for making the purchase. The architect's fees were $85,600. The cost for the title insurance was $4,600, and liability insurance costs during the construction phase for the factory was $12,640. The excavation cost to clear the ground for the new building was $19,450. They paid the building contractor $8,200,000. The interest costs during the construction phase of the building was $465,000. What should Moby record as cost of the land? Question options: 2,796,705 2,882,305 2,799,155 2,550,000
- A company is constructing a new production facility. The following costs have been incurred: Site preparation costs $50,000 Architects’ fees $26,000 Legal fees $10,000 Purchase of site $200,000 Costs incurred to relocate employees to the new facility $30,000 Administration costs $50,000 Total costs $366,000 The architects’ fees relate to the design of the new facility and the legal fees relate to legal advice received on the contract to purchase the site. The total value that should be recognized as Property, Plant and Equipment for the new facility should be Question 10Answer a. $ 314,000 b. $ 324,000 c. $ 344,000 d. $ 286,000Cala Manufacturing purchases land for $259,000 as part of its plans to build a new plant. The company pays $26,400 to tear down an old building on the lot and $39,026 to fill and level the lot. It also pays construction costs $1,220,600 for the new building and $77,048 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.. DAFFODIL Company had the following transactions pertaining to its new office building: Purchase price of land -₱1,200,000; Legal fees for contracts to purchase land -₱140,000; Architect's fee -₱256,000; Demolition of old building on site -₱315,000; Sale of scrap from old building -₱71,000; Construction cost of new building (fully completed) -₱2,450,000; Fire insurance policy on the newly constructed building for the whole year starting on the day it was completed -₱250,000. At what amount should the building be shown in DAFFODIL's statement of financial position of?
- Alzparker Company constructed a building at a total actual cost of $30,000,000. Weighted-average accumulated expenditures during the construction period amounted to $23,000,000. As a result of financing arrangements, actual interest was $1,820,000, and avoidable interest was $1,600,000. What is the capitalized cost of the building?The following costs were incurred by Barak Klever Ltd in 2020 in the design and construction of a new office building over a nine-month period during 2020; GH¢ (000) Feasibility study Architects' fees 100 Site clearance (by external demolition professionals) 80 Construction materials 600 Cost of own inventories used in the construction (Net realizable value if sold outside the company GH¢24,000) 30 Internal construction staff salaries during the period of construction 360 External contractor costs 2,400 Income from renting out…POPPY Company had the following transactions pertaining to its new office building: Purchase price of land -₱1,200,000; Legal fees for contracts to purchase land -₱140,000; Architect's fee -₱256,000; Demolition of old building on site -₱315,000; Sale of scrap from old building -₱71,000; Construction cost of new building (fully completed) -₱2,450,000; Fire insurance policy on the newly constructed building for the whole year starting on the day it was completed -₱250,000. At what amount should the building be shown in POPPY's statement of financial position of?
- Vaughn Co. purchased land as a factory site for $456,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months.The company paid $47,880 to raze the old buildings and sold salvaged lumber and brick for $7,182. Legal fees of $2,109 were paid for title investigation and drawing the purchase contract. Vaughn paid $2,508 to an engineering firm for a land survey, and $77,520 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $1,710, and a liability insurance premium paid during construction was $1,026. The contractor’s charge for construction was $3,123,600. The company paid the contractor in two installments: $1,368,000 at the end of 3 months and $1,755,600 upon completion. Interest costs of $193,800 were incurred to finance the construction.Determine the cost of the land and the cost of the building as they should be recorded on the books of Vaughn Co.…Martini Company incurred the following costs in purchasing a land as a factory site:Purchase price 2,400,000Cost of tearing down old building 240,000Legal fee for title investigation 15,000Title insurance 10,000 Architect fee 125,000Liability insurance during construction 25,000Excavation cost 40,000Payment to building contractor 8,800,000Special assessment by city for public improvement 30,000Interest cost during construction 300,000 What is the cost of the building?The Italian Bread Company purchased land as a factory site for $70,000. An old building on the property was demolished, and construction began on a new building. Costs incurred during the first year are listed as follows:Demolition of old building $ 9,000Sale of salvaged materials (1,100)Architect fees (for new building) 20,000Legal fees (for title investigation of land) 3,000Property taxes on the land (for the first year) 4,000Building construction costs 600,000Interest costs related to the construction 23,000Required:Determine the amounts that the company should record in the Land and the Building accounts.