1 Problem 7-18 Determine the acquisition cost of land and building (L07-1) 10 points The Italian Pizza Company purchased land as a factory site for $89,000. 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: 02:39:48 Skipped Land elearing costs Sale of Firewood to a worker Architect fees for new building) Title investigation of land Property taxes on land for the first year) Building construction costs $ 4,900 (410) 29.000 3,400 2,900 390,000 Box Print References Required: Determine the amounts that the company should record in the land and the new building accounts. (Amounts to be deducted should be indicated by a minus sign.) Land Building Totais $ 0 0 $ MC Graw Hill Prev 1 of 10 Next > 7 Homework Problem 7-3B Calculate and record goodwill (LO7-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,550,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: a Accounts Receivable Building Equipment Accounts Payable Net annet Book Value Pair Value $ 700,000 $ 600,000 4,050,000 4,750,000 120.000 I 210,000 (800.000) (800,000) $4.070.000 $4,760,000 Required: 1. Calculate the amount Northern Equipment should report for goodwill. Goodaril 2. Record Northern Equipment's acquisition of Pioneer Equipment Rental. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction lit View transaction list Journal entry worksheet Record the acquisition of Pioneer Equipment Rental Note: Enter debits before credits Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal