Falcon Waste Management purchased land and a warehouse for $760,000. In addition to the purchase price, Falcon made the following expenditures related to the acquisition: broker's commission, $46,000; title insurance, $11,000; miscellaneous closing costs, $14,000. The warehouse was immediately demolished at a cost of $34,000 in anticipation of the building of a new warehouse. Determine the amounts Falcon should capitalize as the cost of the land and the building. Capitalized cost of land Capitalized cost of building $ 865,000
Falcon Waste Management purchased land and a warehouse for $760,000. In addition to the purchase price, Falcon made the following expenditures related to the acquisition: broker's commission, $46,000; title insurance, $11,000; miscellaneous closing costs, $14,000. The warehouse was immediately demolished at a cost of $34,000 in anticipation of the building of a new warehouse. Determine the amounts Falcon should capitalize as the cost of the land and the building. Capitalized cost of land Capitalized cost of building $ 865,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Falcon Waste Management purchased land and a warehouse for $760,000. In addition to the purchase price, Falcon made the
following expenditures related to the acquisition: broker's commission, $46,000; title insurance, $11,000; miscellaneous closing costs,
$14,000. The warehouse was immediately demolished at a cost of $34,000 in anticipation of the building of a new warehouse.
Determine the amounts Falcon should capitalize as the cost of the land and the building.
Capitalized cost of land
Capitalized cost of building
$
865,000
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