The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses.
Money borrowed to pay building contractor (signed a note)
Payment for construction from note proceeds
Cost of land fill and clearing
Delinquent real estate taxes on property assumed by purchaser
Premium on 6-month insurance policy during construction
Refund of 1-month insurance premium because construction completed early
Architect’s fee on building
Cost of real estate purchased as a plant site (land $208,600 and building $50,000)
Commission fee paid to real estate agency
Installation of fences around property
Cost of razing and removing building
Proceeds from salvage of demolished building
Interest paid during construction on money borrowed for construction
Cost of parking lots and driveways
Cost of trees and shrubbery planted (permanent in nature)
Excavation costs for new building
Identify each item by letter and list the items in columnar form, using the headings shown below. All receipt amounts should be reported in parentheses. For any amounts entered in the Other Accounts column, also indicate the account title.
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Cost of land includes all expenses relating to acquisition of land and required to put it to use. Land improvements include cost of parking, sidewalks, landscaping, sprinkling systems...
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