Question

Ogden Furniture purchased land, paying $ 70,000 cash plus a $ 300,000 note payable. In addition, Ogden paid delinquent property tax of $ 2,500, title insurance costing $ 2,000, and $ 8,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $ 700,000. It also paid $ 55,000 for a fence around the property, $ 18,000 for a sign near the entrance, and $ 10,000 for special lighting of the grounds.

Requirements
1. Determine the cost of the land, land improvements, and building.
2. Which of these assets will Ogden depreciate?



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  • CreatedJanuary 16, 2015
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