The items below represent expenditures (or receipts) related to the construction of a new home office...
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The items below represent expenditures (or receipts) related to the construction of a new home office for ICON Limited. Cost of land site, which included an old apartment building (appraised at $60,000) $170,000 2,100 7,500 Legal fees, including fee for title search Payment of apartment building mortgage and related interest due at time of sale Payment of delinquent property taxes assumed by the purchaser Cost of razing the apartment building Proceeds from sale of salvaged materials Grading and drainage on land site Architect's fees on new building Proceeds from sale of excess dirt (from basement excavation) to owner of adjoining property (dirt was used to fill in a low area on property) Payment to building contractor Interest cost incurred during construction (based on average accumulated construction expenditures - may be capitalized) Payment of medical bills of employee accidentally injured while inspecting building Construction Special assessment for paving city sidewalks (paid to city) Cost of paving driveway and parking lot Cost of installing lights in parking lot Premium for insurance on building during construction Cost of open house party to celebrate opening of new building 2,800 14,000 (3,200) 6,000 100,000 (800) 2,500,000 200,000 600 12,000 16,000 7,300 5,000 4,500 REQUIRED: From the given data, compute the proper balances for the Land, Building, and Land improvements accounts of ICON Limited. The items below represent expenditures (or receipts) related to the construction of a new home office for ICON Limited. Cost of land site, which included an old apartment building (appraised at $60,000) $170,000 2,100 7,500 Legal fees, including fee for title search Payment of apartment building mortgage and related interest due at time of sale Payment of delinquent property taxes assumed by the purchaser Cost of razing the apartment building Proceeds from sale of salvaged materials Grading and drainage on land site Architect's fees on new building Proceeds from sale of excess dirt (from basement excavation) to owner of adjoining property (dirt was used to fill in a low area on property) Payment to building contractor Interest cost incurred during construction (based on average accumulated construction expenditures - may be capitalized) Payment of medical bills of employee accidentally injured while inspecting building Construction Special assessment for paving city sidewalks (paid to city) Cost of paving driveway and parking lot Cost of installing lights in parking lot Premium for insurance on building during construction Cost of open house party to celebrate opening of new building 2,800 14,000 (3,200) 6,000 100,000 (800) 2,500,000 200,000 600 12,000 16,000 7,300 5,000 4,500 REQUIRED: From the given data, compute the proper balances for the Land, Building, and Land improvements accounts of ICON Limited.
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Related Book For
South Western Federal Taxation 2015
ISBN: 9781305310810
38th Edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
Posted Date:
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