Spector Enterprises needed a new soccer facility. They made the following expenditures forthe project:AmountExpenditureInstallation of machineryMachinery purchasedStorage charges for machinery because new building was notreadyInstallation of new roofArchitect's feesHauling charges to move equipment from storage8,28672,3496621,1787,82039619,892Removal of old building24995,718Construction costs of new buildingCash paid for land and existing buildingFreight on machinery purchasedSurvey to site the new buildingLegal fees for title searchClearing of land for parking lot107,5441,2275,3589155,906REQUIRED:Prepare a schedule showing the amounts to be recorded as Land, Building, Machinery &Equipment, and Expenses.Use the following format:Machinery &EquipmentExpenditureBuildingExpensesLandTotals

Note:- Survey to site the new building should be deducted from Land. Storage charges for machinery…

Answered: REQUIRED: Prepare a schedule showing…

Business

Accounting

REQUIRED: Prepare a schedule showing the amounts to be recorded as Land, Building, Machinery & Equipment, and Expenses.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 23P

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Martini Company incurred the following costs in purchasing a land as a factory site:Purchase price 2,400,000Cost of tearing down old building 240,000Legal fee for title investigation 15,000Title insurance 10,000 Architect fee 125,000Liability insurance during construction 25,000Excavation cost 40,000Payment to building contractor 8,800,000Special assessment by city for public improvement 30,000Interest cost during construction 300,000 What is the cost of the building?
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Revson Corporation purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing the land were as follows: purchase price, $55,000; broker’s fees, $6,000; title search and other fees, $5,000; demolition of an old building on the property, $5,700; grading, $1,200; digging foundation for the road, $3,000; laying and paving driveway, $25,000; lighting $7,500; signs, $1,500. List the items and amounts that should be included in the Land account.
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Which of the following would be considered capital expenditures (debit to an asset)? Sales tax on the purchase of equipment Purchase of cleaning supplies to clean the company's microwave A special concrete foundation that was poured specifically for a new piece of equipment Installation costs for installing a new piece of equipment General maintenance costs for a piece of equipment that has been in service for ten years Routine oil change for a van Repair of damage incurred on a new piece of equipment while the new equipment was being brought into the company's office Attorney's fees incurred to review the purchase agreement for a new piece of equipment Installation of a parking lot around a retail buildling Freight costs for the delivery of a purchased used printing press
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