Crane Supply Ltd. is a newly formed public corporation that incurred the following costs related to...

   

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Crane Supply Ltd. is a newly formed public corporation that incurred the following costs related to land, buildings, and machinery: Legal fees for title search Property tax in arrears at property purchase date Architect's fees Cash paid for land and dilapidated building on it Removal of old building Less: Salvage Surveying before construction Interest on short-term loans during construction Excavation before construction for basement and foundation Machinery purchased (subject to 3% cash discount, which was not taken) Freight on machinery purchased Exchange on foreign currency purchase of machinery $20,300 5,980 $510 4,400 3,000 115,000 14,320 360 7,300 19,400 65,100 1,370 1,880 Storage charges on machinery, made necessary because building was still under construction when machinery was delivered New building constructed (building construction took six months from date of purchase of land and old building) Assessment by city for drainage project Fence surrounding the property for security Hauling charges for delivery of machinery from storage to new building Installation of machinery Customs duty on importing machinery Municipal grant to promote locating building in the municipality 2,200 483,000 1,870 13,100 620 2,000 5,500 (8,100 ) (a) Determine the amounts that should be included in the cost of land, buildings, and machinery. Also determine the other amounts that are not included in these accounts. Land Buildings Machinery Other $ LA $ LA LA $ Crane Supply Ltd. is a newly formed public corporation that incurred the following costs related to land, buildings, and machinery: Legal fees for title search Property tax in arrears at property purchase date Architect's fees Cash paid for land and dilapidated building on it Removal of old building Less: Salvage Surveying before construction Interest on short-term loans during construction Excavation before construction for basement and foundation Machinery purchased (subject to 3% cash discount, which was not taken) Freight on machinery purchased Exchange on foreign currency purchase of machinery $20,300 5,980 $510 4,400 3,000 115,000 14,320 360 7,300 19,400 65,100 1,370 1,880 Storage charges on machinery, made necessary because building was still under construction when machinery was delivered New building constructed (building construction took six months from date of purchase of land and old building) Assessment by city for drainage project Fence surrounding the property for security Hauling charges for delivery of machinery from storage to new building Installation of machinery Customs duty on importing machinery Municipal grant to promote locating building in the municipality 2,200 483,000 1,870 13,100 620 2,000 5,500 (8,100 ) (a) Determine the amounts that should be included in the cost of land, buildings, and machinery. Also determine the other amounts that are not included in these accounts. Land Buildings Machinery Other $ LA $ LA LA $

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With the provided images you need to classify the costs incurred into categories for land buildings machinery and other costs that do not fall into th... View the full answer