Intermountain Delivery Company acquired an adjacent lot to construct a new warehouse, paying $100,000 and giving a short-term note for $700,000. Legal fees paid were $5,000, delinquent taxes assumed were $18,500, and fees paid to remove an old building from the land were $12,000. Materials salvaged from the demolition of the building were sold for $4,000. A contractor was paid $950,000 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.
Answer to relevant QuestionsHuffine Lines Co. incurred the following costs related to trucks and vans used in operating its delivery service:1. Changed the oil and greased the joints of all the trucks and vans.2. Changed the radiator fluid on a truck ...A diesel-powered tractor with a cost of $214,000 and estimated residual value of $30,000 is expected to have a useful operating life of 50,000 hours. During January, the tractor was operated 175 hours. Determine the ...Equipment acquired on January 8, 2011, at a cost of $420,000, has an estimated useful life of 15 years, has an estimated residual value of $30,000, and is depreciated by the straight-line method.a. What was the book value of ...Assume the same facts as in Exercise 9-25, except that the book value of the press traded in is $108,500. (a) What is the amount of cash given? (b) What is the gain or loss on the exchange?In Exercise 9-25, A printing press ...The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. The receipts are identified by an asterisk.a. Fee paid to attorney for title search ...
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