Biliran Company incurred the following costs at the beginning of the current year: Cost of land 1,000,000 Cost of building Remodelling and repairs prior to occupancy 4,000,000 500,000 Escrow fee 100,000 Clearing, levelling and landfill Property tax for period prior to acquisition Real estate commission 250,000 150,000 300,000 What is the cost of building? a. 4,500,000 b. 4.740.000 c. 4,800,000 d. 4.940.000

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
Chapter11: Depreciation, Depletion, Impairment, And Disposal
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Biliran Company incurred the following costs at the beginning of the current year:
Cost of land
1,000,000
Cost of building
Remodelling and repairs prior to occupancy
4,000,000
500,000
Escrow fee
100,000
Clearing, levelling and landfill
Property tax for period prior to acquisition
Real estate commission
250,000
150,000
300,000
What is the cost of building?
a. 4,500,000
b. 4,740,000
C. 4,800,000
d. 4,940,000
Transcribed Image Text:Biliran Company incurred the following costs at the beginning of the current year: Cost of land 1,000,000 Cost of building Remodelling and repairs prior to occupancy 4,000,000 500,000 Escrow fee 100,000 Clearing, levelling and landfill Property tax for period prior to acquisition Real estate commission 250,000 150,000 300,000 What is the cost of building? a. 4,500,000 b. 4,740,000 C. 4,800,000 d. 4,940,000
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