On December 1, B Company purchased a 4,000,000 tract of land for a factory site. The entity razed an old building on the property and sold the materials salvaged from the demolition. The entity incurred additional costs and realized a salvage proceeds during December as follows: Demolition of old building 200,000 Legal fees for the purchased contract and recording of ownership 150,000 Title guarantee insurance 50,000 Proceeds from sale of salvaged materials 20,000 In the December 31 statement of financial position, what is the carrying amount of the land?
On December 1, B Company purchased a 4,000,000 tract of land for a factory site. The entity razed an old building on the property and sold the materials salvaged from the demolition. The entity incurred additional costs and realized a salvage proceeds during December as follows: Demolition of old building 200,000 Legal fees for the purchased contract and recording of ownership 150,000 Title guarantee insurance 50,000 Proceeds from sale of salvaged materials 20,000 In the December 31 statement of financial position, what is the carrying amount of the land?
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 38P
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On December 1, B Company purchased a 4,000,000 tract of land for a factory site. The entity razed
an old building on the property and sold the materials salvaged from the demolition. The entity
incurred additional costs and realized a salvage proceeds during December as follows:
Demolition of old building
200,000
Legal fees for the purchased contract and recording of ownership
150,000
Title guarantee insurance
50,000
Proceeds from sale of salvaged materials
20,000
In the December 31
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