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.
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.
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 42P
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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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