Belvidere Self Storage purchased land, paying $170,000 cash as a down payment and signing a $180,000 note
Question:
Belvidere Self Storage purchased land, paying $170,000 cash as a down payment and signing a $180,000 note payable for the balance. Belvidere also had to pay delinquent property tax of $2,000, title insurance costing $2,500, and $3,000 to level the land and remove an unwanted building. The company paid $57,000 to add soil for the foundation and then constructed an office building at a cost of $600,000. It also paid $55,000 for a fence around the property, $14,000 for the company sign near the property entrance, and $5,000 for lighting of the grounds. What is the capitalized cost of each of Belvidere’s land, land improvements, and building?
Step by Step Answer:
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.