During the current year, Dimasalang Company had the following transactions pertaining to the new office building. Purchase price of land as a building site P 600,000 Legal fees for contract to purchase land 20,000 Architect fee 80,000 Demolition of old building 50,000 Sale of scrap from old building 30,000 Construction cost of new building 3,400,000

During the current year, Dimasalang Company had the following transactions pertaining to the new office building. Purchase price of land as a building site P 600,000 Legal fees for contract to purchase land 20,000 Architect fee 80,000 Demolition of old building 50,000 Sale of scrap from old building 30,000 Construction cost of new building 3,400,000

Name: Land and buildingDuring the current year, Dimasalang Company had the
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Description: Land and buildingDuring the current year, Dimasalang Company had the following transactions pertaining to the new office building.Purchase price of land as a building siteP 600,000Legal fees for contract to purchase land20,000Architect fee80,000Demo

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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Costs to Be Included in Historical Cost Valuation. At a cost of 200,000, Assume In-N-Out Burger acquired a tract of land for a restaurant site. It paid attorneys 7,500 to conduct a title search and to prepare the required legal documents for the purchase. State real estate transfer taxes totaled 2,500. Building permits totaled 1,200. Compute the acquisition cost of the land.
During the current year, Alanna Co. had the following transactions pertaining to its new office building. 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. B. What should Alanna Co. record on its books for the building?
During the current year, Alanna Co. had the following transactions pertaining to its new office building. 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. B. What should Alanna Co. record on its books for the building?
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