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?
Answer to relevant QuestionsDuBoise Manufacturing bought three used machines in a $164,000 lump-sum purchase. An independent appraiser valued the machines as shown in the table.Machine No. Appraised Value1 .............. $ 62,0002 ...Assume Harley Software Consultants purchased a building for $505,000 and depreciated it on a straight-line basis over 40 years. The estimated residual value was $80,000. After using the building for 20 years, Harley realized ...Atlanta Self Storage purchased land, paying $145,000 cash as a down payment and signing a $190,000 note payable for the balance. Atlanta also had to pay delinquent property tax of $5,000, title insurance costing $3,000, and ...USA Truck Company is a large trucking company that operates throughout the United States. USA Truck Company uses the units-of-production (UOP) method to depreciate its trucks.USA Truck Company trades in trucks often to keep ...Khonner Stores, Inc., sells electronics and appliances. The excerpts that follow are adapted from Khonner Stores’ financial statements for 2014 and 2013.Requirements1. How much was Khonner Stores’ cost of plant assets ...
Post your question