Cala Manufacturing purchases land for $317,000 as part of its plans to build a new plant. The company pays $43,700 to tear down an old building on the lot and $64,600 to fill and level the lot. It also pays construction costs $1,586,800 for the new building and $100,164 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.

Cala Manufacturing purchases land for $317,000 as part of its plans to build a new plant. The company pays $43,700 to tear down an old building on the lot and $64,600 to fill and level the lot. It also pays construction costs $1,586,800 for the new building and $100,164 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.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 46P

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