A) On April 1, PC Co. began construction of a small building. Payments of $250,640 were made
Question:
The building was completed and ready for occupancy on August 1. For the purpose of determining the amount of interest cost to be capitalized, calculate the weighted-average accumulated expenditures on the building.
B) OO Company purchased land as a factory site for $1340000. They paid $115000 to tear down two buildings on the land. Salvage (scrap) was sold for $8000. Legal fees of $5080 were paid for title investigation and making the purchase. Architect's fees were $46200. Title insurance cost $3500, and liability insurance during construction cost $3800. Excavation cost $15660. The contractor was paid $4400000. An assessment made by the city for pavement was $9900. Interest costs during construction were $256000.
The cost of the land that should be recorded by OO Company is ________
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield