How much are the capitalized costs of the land and the building?BuildingBuilding23,096,00023,144,000LandLanda. 8,160,000b. 8,120,000c. 8,100,000d. 8,060,00023,184,00023,264,000 LOATH HATE Co. purchased a lot for P8,000,000. Immediately after the purchase, LOATH Co. startedthe construction of a new building on the lot. Additional information follows:Legal cost of conveying title to land SpecialP 40,00020,00060,00022,000,000120,00056,000400,000240,00048,000520,000assessmentSurvey costsMaterials, labor, and overhead costsCash discounts on materials purchased not takenClerical and other costs related to constructionExcavation costsArchitectural fees and building permitSupervision by management on constructionInsurance premiums paid for workersPayment for claim for injuries not covered byinsuranceSavings on constructionCost of changes to plans and specifications due to inefficiencies180,000800,000560,000Paving of streets and sidewalks (not included in blueprint)Income earned on a vacant space rented as parking lot during construction40,00036,000

A capitalized cost seems to be an item that is applied to the cost base of a fixed asset on a…

urvey costs aterials, labor, and overhead costs ash discounts on materials purchased not taken erical and other costs related to construction 22,0 1 xcavation costs 4 rchitectural fees and building permit upervision by management on construction isurance premiums paid for workers avment for claim for injuries not covered by 2- 5.

urvey costs aterials, labor, and overhead costs ash discounts on materials purchased not taken erical and other costs related to construction 22,0 1 xcavation costs 4 rchitectural fees and building permit upervision by management on construction isurance premiums paid for workers avment for claim for injuries not covered by 2- 5.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter5: Adjusting Entries And The Work Sheet

Section: Chapter Questions

Problem 1MC: LO1 The purpose of depreciation is to (a) spread the cost of an asset over its useful life. (b) show...

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