On March 1, 2016, Beldon Corporation purchased land as a factory site for $60,000. An old building on the prop-erty was demolished, and construction began on a new building that was completed on December 15, 2016. Costsincurred during this period are listed below:$ 4,000Demolition of old buildingArchitect's fees (for new building)Legal fees for title investigation of landProperty taxes on land (for period beginning March 1, 2016)12,0002,0003,000500,0005,000Construction costsInterest on construction loanSalvaged materials resulting from the demolition of the old building were sold for $2,000.Required:Determine the amounts that Beldon should capitalize as the cost of the land and the new building.

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Asked Jan 17, 2020
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On March 1, 2016, Beldon Corporation purchased land as a factory site for $60,000. An old building on the prop-
erty was demolished, and construction began on a new building that was completed on December 15, 2016. Costs
incurred during this period are listed below:
$ 4,000
Demolition of old building
Architect's fees (for new building)
Legal fees for title investigation of land
Property taxes on land (for period beginning March 1, 2016)
12,000
2,000
3,000
500,000
5,000
Construction costs
Interest on construction loan
Salvaged materials resulting from the demolition of the old building were sold for $2,000.
Required:
Determine the amounts that Beldon should capitalize as the cost of the land and the new building.
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On March 1, 2016, Beldon Corporation purchased land as a factory site for $60,000. An old building on the prop- erty was demolished, and construction began on a new building that was completed on December 15, 2016. Costs incurred during this period are listed below: $ 4,000 Demolition of old building Architect's fees (for new building) Legal fees for title investigation of land Property taxes on land (for period beginning March 1, 2016) 12,000 2,000 3,000 500,000 5,000 Construction costs Interest on construction loan Salvaged materials resulting from the demolition of the old building were sold for $2,000. Required: Determine the amounts that Beldon should capitalize as the cost of the land and the new building.

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Expert Answer

Step 1

Plant Assets:

Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

 

Step 2

Determine the amounts that Corporation B should capi...

Accounting homework question answer, step 2, image 1
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