Question: Brady Systems purchased land paying 70 000 cash as a down

Brady Systems purchased land, paying $70,000 cash as a down payment and signing a $190,000 note payable for the balance. In addition, Brady Systems paid delinquent property tax of $3,000, title insurance costing $3,500, and an $8,000 charge for leveling the land and removing an unwanted building. The company constructed an office building on the land at a cost of $700,000. It also paid $50,000 for a fence around the property, $10,000 for the company sign near the entrance, and $6,000 for special lighting of the grounds.

1. Determine the cost of the company’s land, land improvements, and building.
2. Which of the assets will Brady depreciate?

Sale on SolutionInn
  • CreatedApril 29, 2014
  • Files Included
Post your question