On April 15, 2020, Classic Properties purchased land with two buildings on it: one building will...

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On April 15, 2020, Classic Properties purchased land with two buildings on it: one building will be used for the business office; the other, a dilapidated (run-down) building, will be torn down. Other information pertaining to the purchase is as follows: Purchase price of the land and building, including legal fees Appraisal value of land on April 15, 2020 Appraisal value of building on April 15, 2020 Costs to remove run-down building Landscaping around the land perimeter and old building site Paving for a driveway to the building Light posts at entry of property Special municipal assessment for water main infrastructure $725,000 516,925 316,825 1. Determine the total cost of each of the following items: a. Land b. Building 5,800 29,000 79,750 43,500 7,250 The total costs were paid by issuing a Note Payable for $500,000, with all remaining costs paid by cash. REQUIRED: c. Land Improvements 2. Prepare the journal entry to record the purchase made by Classic Properties, using the information prow above and your answer to Part 1. On April 15, 2020, Classic Properties purchased land with two buildings on it: one building will be used for the business office; the other, a dilapidated (run-down) building, will be torn down. Other information pertaining to the purchase is as follows: Purchase price of the land and building, including legal fees Appraisal value of land on April 15, 2020 Appraisal value of building on April 15, 2020 Costs to remove run-down building Landscaping around the land perimeter and old building site Paving for a driveway to the building Light posts at entry of property Special municipal assessment for water main infrastructure $725,000 516,925 316,825 1. Determine the total cost of each of the following items: a. Land b. Building 5,800 29,000 79,750 43,500 7,250 The total costs were paid by issuing a Note Payable for $500,000, with all remaining costs paid by cash. REQUIRED: c. Land Improvements 2. Prepare the journal entry to record the purchase made by Classic Properties, using the information prow above and your answer to Part 1.

Answer rating: 100% (QA)

1 Total Cost of Each Item a Land Purchase Price of Land and Building 725000 Legal Fees 58... View the full answer