Question: Lavallee Furniture purchased land paying 95 000 cash plus a 260 000

Lavallee Furniture purchased land, paying $95,000 cash plus a $260,000 note payable. In addition, Lavallee paid delinquent property tax of $3,000, title insurance costing $2,000, and $5,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $450,000. It also paid $55,000 for a fence around the property, $16,000 for a sign near the entrance, and $7,000 for special lighting of the grounds.
Requirements
1. Determine the cost of the land, land improvements, and building.
2. Which of these assets will Lavallee depreciate?

View Solution:


Sale on SolutionInn
Sales7
Views447
Comments
  • CreatedJune 15, 2015
  • Files Included
Post your question
5000