Purchased land - $120,000, paid $9,000 to tear down a dilapidated building, paid $15000 to install a sewer system, paid $100,000 to construct a wall and $35,000 for a parking lot. What is the cost of the land? Prepare journal entries to record the purchase.

Purchased land - $120,000, paid $9,000 to tear down a dilapidated building, paid $15000 to install a sewer system, paid $100,000 to construct a wall and $35,000 for a parking lot. What is the cost of the land? Prepare journal entries to record the purchase.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...

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Purchased land - $120,000, paid $9,000 to tear down a dilapidated building, paid $15000 to
install a sewer system, paid $100,000 to construct a wall and $35,000 for a parking lot. What
is the cost of the land? Prepare journal entries to record the purchase.

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