Which of the following is recorded as a cost when purchasing an existing building? O A. cost to renovate the building before it is in use B. fencing C. land where the building is located D. parking lot around the building
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- During the current year, Alanna Co. had the following transactions pertaining to its new office building. A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. B. What should Alanna Co. record on its books for the building?Which cost is not recorded as part of the cost of a building? a. Real estate commission paid to buy the building b. Construction materials and labor c. Concrete for the building’s foundation d. Annual building maintenanceGallon Auto purchased a neighboring lot for a new building and parking lot. Indicate whether each of the following expenditures is properly charged to (a) Land, (b) Land Improvements, or (c) Buildings:a. Paving costsb. Architects’ fee for building designc. Cost of clearing the propertyd. Cost of the propertye. Building construction costsf. Lights around the propertyg. Building permith. Interest on the construction loan
- The demolition costs of an old building before a new building is constructed as: included as cost of land included as cost of old building included as cost of new building recognized as lossMerchant Company purchased property for a building site. The costs associated with the property were: What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?Indicate where the following items would be shown on abalance sheet.(a) A lien that was attached to the land when purchased.(b) Landscaping costs.(c) Attorney’s fees and recording fees related to purchasingland.(d) Variable overhead related to construction of machinery.(e) A parking lot servicing employees in the building.(f) Cost of temporary building for workers during constructionof building.(g) Interest expense on bonds payable incurred duringconstruction of a building.(h) Assessments for sidewalks that are maintained bythe city.(i) The cost of demolishing an old building that was onthe land when purchased.
- The cost of installing new equipment would be debited to which of the following accounts? Oa. Land Improvements Ob. Buildings Oc. Repairs and Maintenance Expense Od. Machinery and EquipmentHow much is the new building? under the section of property, plant and equipment, how much should be reported as the total cost of land show solutionWhen a company purchases land with a building on it and immediately tears down thebuilding so that the land can be used for the construction of a plant, the costs incurredto tear down the building should be:a. expensed as incurredb. added to the cost of the plantc. added to the cost of the landd. amortized over the estimated time period between the tearing down of thebuilding and the completion of the plan
- 1. The cost of land typically includes the purchase price and all of the following costs except A) private driveways and parking lots. B) assumption of any liens or mortgages on the property. C) street lights, sewers, and drainage systems cost. D) grading, filling, draining, and clearing costs.Which cost is not recorded as part of the cost of a building? Real estate commission paid to buy the building Construction materials and labor Concrete for the building’s foundation Annual building maintenanceIf land is purchased as a building site, the cost of removing existing structures is not charged to the Land account.Select one:a. FALSEb. TRUE