During the current year, Alanna Co. had the following transactions pertaining to its new office building.Purchase price of land$120,000Legal fees for contracts to purchase land3,000Architech fees17,000Demolition of the old building on site9,000Sale of scrap from old building6,000Construction cost of new building700,000A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost.$fill in the blank 1B. What should Alanna Co. record on its books for the building?$fill in the blank 2

Answer A: So, Alanna Co. should record the land in the books for $126,000.

Answered: During the current year, Alanna Co. had…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 3PB: During the current year, Alanna Co. had the following transactions pertaining to its new office...

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During the current year, Alanna Co. had the following transactions pertaining to its new office building.

Purchase price of land	$120,000
Legal fees for contracts to purchase land	3,000
Architech fees	17,000
Demolition of the old building on site	9,000
Sale of scrap from old building	6,000
Construction cost of new building	700,000

A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost.

$fill in the blank 1

B. What should Alanna Co. record on its books for the building?

$fill in the blank 2

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