E10-17 Determining the cost of assets Lawson Furniture purchased land, paying $65,000 cash and signing a $250,000 note pavable. In addition, Lawson paid delinquent property tax of $5,000, title insurance costing $4,000, and $9,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $400,000. It also paid $54.000 for a fence around the property, $12,000 for a sign near the entrance, and $8,000 for special lighting of the grounds. Requirements 1. Determine the cost of the land, land improvements, and building. 2. Which of these assets will Lawson depreciate?
E10-17 Determining the cost of assets Lawson Furniture purchased land, paying $65,000 cash and signing a $250,000 note pavable. In addition, Lawson paid delinquent property tax of $5,000, title insurance costing $4,000, and $9,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $400,000. It also paid $54.000 for a fence around the property, $12,000 for a sign near the entrance, and $8,000 for special lighting of the grounds. Requirements 1. Determine the cost of the land, land improvements, and building. 2. Which of these assets will Lawson depreciate?
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter2: Asset And Liability Valuation And Income Recognition
Section: Chapter Questions
Problem 11PC: Costs to Be Included in Historical Cost Valuation. At a cost of 200,000, Assume In-N-Out Burger...
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> Exercises
E10-17 Determining the cost of assets
Lawson Furniture purchased land, paying $65,000 cash and signing a $250,000 note
pavable. In addition, Lawson paid delinquent property tax of $5,000, title insurance
costing $4,000, and $9,000 to level the land and remove an unwanted building.
The company then constructed an office building at a cost of $400,000. It also paid
$54.000 for a fence around the property, $12,000 for a sign near the entrance, and
$8,000 for special lighting of the grounds.
Requirements
1. Determine the cost of the land, land improvements, and building.
2. Which of these assets will Lawson depreciate?
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