On March 1, 2018, Beldon Corporation purchased land as a factory site for $60,000. An old building
Question:
Demolition of old building ............................................................ $ 4,000
Architect's fees (for new building) .................................................... 12,000
Legal fees for title investigation of land ............................................... 2,000
Property taxes on land (for period beginning March 1, 2018) ....................... 3,000
Construction costs ........................................................................ 500,000
Interest on construction loan ............................................................. 5,000
Salvaged materials resulting from the demolition of the old building were sold for $2,000.
Required:
Determine the amounts that Beldon should capitalize as the cost of the land and the new building.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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