On June 2, 2022, Hilton Corporation purchased a parcel of land as a factory site for $
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Question:
On June 2, 2022, Hilton Corporation purchased a parcel of land as a factory site for $ 125,000. It demolished an old building on the property and began construction on a new building that was completed on November 10, 2022. Costs incurred during the period are:
- Demolition of old building $ 9,200
- Architects's fees 28,000
- Legal fees for title investigation and purchase contract 4,600
- Construction costs $ 850,000
Hilton sold salvaged materials resulting from the demolition for $ 3,600.
At what amount should Hilton record the cost of land and the new building respectively?
Related Book For
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
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