Problem 18-112 (Algo) DJG Corporation purchased land in order to... DJG Corporation purchased land in order...

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Problem 18-112 (Algo) DJG Corporation purchased land in order to... DJG Corporation purchased land in order to build new corporate headquarters for a purchase price of $769,000. The lawyers charged $1,900 to handle the legal aspects of the purchase. Closing costs paid by DJG amounted to $15,630. There was an old factory and warehouse on the property that cost DJG $7,200 to have removed. In addition, CSB Construction charged the corporation $1,500 to grade the property to ensure proper drainage and an additional $19,100 build a drive, parking lot, and walkways. 1. What amount should be recorded as Land? 2. What other account(s) should be increased and for what amount(s)? 1. Total amount of land 2. Land improvement Problem 18-112 (Algo) DJG Corporation purchased land in order to... DJG Corporation purchased land in order to build new corporate headquarters for a purchase price of $769,000. The lawyers charged $1,900 to handle the legal aspects of the purchase. Closing costs paid by DJG amounted to $15,630. There was an old factory and warehouse on the property that cost DJG $7,200 to have removed. In addition, CSB Construction charged the corporation $1,500 to grade the property to ensure proper drainage and an additional $19,100 build a drive, parking lot, and walkways. 1. What amount should be recorded as Land? 2. What other account(s) should be increased and for what amount(s)? 1. Total amount of land 2. Land improvement

Answer rating: 100% (QA)

Answer 1 The amount that should be recorded as Land is the purchase price of th... View the full answer