On March 31, 2014, Kornet Investments paid $4,480,000 for a tract of land and two buildings on
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Cost to demolish Building 1 .............................................................................. $676,160
Cost of additional landscaping................................................................................ 267,520
Cost to construct new building (Building 3) ...................................................... 3,230,400
Cost of new land improvements near Building 2 (Land Improvements 2) .......... 252,800
Required
1. Prepare a schedule having the following column headings: Land, Building 2, Building 3, Land Improvements 1, and Land Improvements 2. Allocate the costs incurred by Kornet to the appropriate columns and total each column.
2. Prepare a single journal entry dated March 31, 2014, to record all the incurred costs, assuming they were paid in cash on that date.
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Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
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