Question: Lexington Self Storage purchased land paying 125 000 cash as a

Lexington Self Storage purchased land, paying $125,000 cash as a down payment and signing a $140,000 note payable for the balance. Lexington also had to pay delinquent property tax of $2,500, title insurance costing $5,500, and $18,000 to level the land and remove an unwanted building. The company paid $54,000 to add soil for the foundation and then constructed an office building at a cost of $970,000. It also paid $36,000 for a fence around the property, $11,000 for the company sign near the property entrance, and $4,000 for lighting of the grounds. What is the capitalized cost of each of Lexington’s land, land improvements, and building?

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  • CreatedJuly 25, 2014
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