Question: please help me answer this Nash Ca. purchased land as a factory site for $416,000. The process of tearing down two old tulidings on the

please help me answer this please help me answer this Nash Ca. purchased land as a factory

Nash Ca. purchased land as a factory site for $416,000. The process of tearing down two old tulidings on the site and constructing the factory required 6 months. The compary paid $43,680 to rare the old buildings and sold salvaged lumber and brick for $6,552 Legal fees of $1,924 were paid for title investigation and drawing the purchase contract. Nash paid $2,288 to an engineering firm for a land survey, and $70,720 for drawing the factory plans, The hand survey had to be made before definitive plans could be drawn. Title insurance oo the property cost $1.560, and a Hablity insurance premium pad during construetion was \$936. The contractor's charge for construction wiss $2849,600. The company paid the contractor in two installments: $1,248,000 at the end of 3 months and $1,601,600 upon completion. Interest costs of $176.800 were incurred to finance the construction. Determine the cost of the land and the cost of the building as they should be recorded on tho books of Nash Co. Assume that the land surver was for the building: Cost of the Land Cost of the Building

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!