Question: Pierce Systems purchased land paying 65 000 cash as a down

Pierce Systems purchased land, paying $65,000 cash as a down payment and signing a $260,000 note payable for the balance. In addition, Pierce Systems paid delinquent property tax of $3,500, title insurance costing $1,500, and an $8,800 charge for level ing the land and removing an unwanted building. The company constructed an office building on the land at a cost of $800,000. It also paid $55,000 for a fence around the property, $8,000 for the company sign near the entrance, and $10,000 for special lighting of the grounds.

1. Determine the cost of the company’s land, land improvements, and building.
2. Which of the assets will Pierce depreciate?

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  • CreatedApril 29, 2014
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