Sheffield Landscaping began construction of a new plant on December 1,2020. On this date, the company purchased a parcel of land for $144,000 in cash. In addition, it paid $2,640 in surveying costs and $3,840 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,360, with $960 being received from the sale of materials. Architectural plans were also formalized on December 1, 2020, when the architect was paid $39,600. The necessary building permits costing $3,360 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor in 2021 as follows.
Sheffield Landscaping began construction of a new plant on December 1,2020. On this date, the company purchased a parcel of land for $144,000 in cash. In addition, it paid $2,640 in surveying costs and $3,840 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,360, with $960 being received from the sale of materials. Architectural plans were also formalized on December 1, 2020, when the architect was paid $39,600. The necessary building permits costing $3,360 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor in 2021 as follows.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter17: Business Tax Credits And The Alternative Minimum Tax
Section: Chapter Questions
Problem 11P
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