The Italian Pizza Company purchased land as a factory site
The Italian Pizza Company purchased land as a factory site for $ 90,000. Prior to construction of the new building, the land had to be cleared of trees and brush. Construction costs incurred during the first year are listed below:
Land clearing costs .............. $ 5,000
Sale of firewood to a worker .......... (400)
Architect fees (for new building) ......... 30,000
Title investigation of land ........... 3,500
Property taxes on land (for the first year) ........ 3,000
Building construction costs ........... 400,000

Required:
Determine the amounts that the company should record in the Land and the New Building accounts.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help