Murphy Industrial Systems purchased land, paying $70,000 cash as a down payment and signing a $150,000 note
Question:
Murphy Industrial Systems purchased land, paying $70,000 cash as a down payment and signing a $150,000 note payable for the balance. In addition, Murphy Industrial Systems paid delinquent property tax of $1,800, title insurance costing $2,700, and a $5,500 charge for leveling the land and removing an unwanted building. The company constructed an office building on the land at a cost of $795,000. It also paid $16,000 for a fence around the property, $3,800 for the company sign near the entrance, and $7,000 for special lighting of the grounds.
Requirements
1. Determine the cost of the company's land, land improvements, and building.
2. Which of the assets will Murphy Industrial Systems depreciate?
Step by Step Answer:
Req 1 Cost of land 70000 150000 1800 2700 5500 230000 Cos...View the full answer
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