Ramirez Company made the following payments related to a land acquisition: Purchase price $7,500 Past due taxes 650 Title search 275 Cost of razing old building 1300 Interest (incurred after productive operations had begun) 160 Proceeds from salvage of old building 1875 What is the capitalizable cost of the land?
Ramirez Company made the following payments related to a land acquisition: Purchase price $7,500 Past due taxes 650 Title search 275 Cost of razing old building 1300 Interest (incurred after productive operations had begun) 160 Proceeds from salvage of old building 1875 What is the capitalizable cost of the land?
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
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 1RE: Susquehanna Company purchased an asset at the beginning of the current year for 250,000. The...
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Ramirez Company made the following payments related to a land acquisition:
What is the capitalizable cost of the land?
Purchase price | $7,500 |
Past due taxes | 650 |
Title search | 275 |
Cost of razing old building | 1300 |
Interest (incurred after productive operations had begun) | 160 |
Proceeds from salvage of old building | 1875 |
What is the capitalizable cost of the land?
$7,850
$7,500
$8,010
$9,725
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