Question:
The following items represent expenditures (or receipts) related to the construction of a new home office for Ryan Investment Company.
Required
From the given data, compute the proper balances for the Land, Building, and Land Improvements accounts of Ryan Investment Company.
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Cost of land site, which included an abandoned railroad spur. Legal fees, including title search, relating to land purchase.. $ 185,000 4,300 Cost of surveying land to confirm boundaries 3,000 Cost of removing railroad tracks...... 7,000 Payment of delinquent property taxes assumed by the purchaser.. 6,000 Proceeds from sale of timber from walnut trees cut down to prepare site for construction (20,000) Proceeds from sale of salvaged railroad track. (4,700) Grading to prepare land site for construction.... 4,000 Cost of basement excavation (contracted separately). 3,700 Architect's fees on new building.... 142,000 Payment to building contractor-original contract price. 3,200,000 Cost of changes during construction to make building more energy efficient Cost of replacing windows broken by vandals... Cost of paving driveway and parking lot...... Out-of-court settlement for mud slide onto adjacent property Special assessment for paving city sidewalks (paid to city).. Cost of brick and wrought iron fence installed across front of property. 91,000 3,400 17,000 12,500 22,000 17,500