Afton Self Storage purchased land, paying $150,000 cash as a down payment and signing a $150,000 note

Question:

Afton Self Storage purchased land, paying $150,000 cash as a down payment and signing a $150,000 note payable for the balance. Afton also had to pay delinquent property tax of $2,000, title insurance costing $2,500, and $6,000 to level the land and remove an unwanted building. The company paid $50,000 to add soil for the foundation and then constructed an office building at a cost of $1,000,000. It also paid $65,000 for a fence around the property, $10,400 for the company sign near the property entrance, and $6,000 for lighting of the grounds. Determine the cost of Afton's land, land improvements, and building.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0135012840

7th edition

Authors: Walter T. Harrison, Charles T. Horngren

Question Posted: